Nevada S.B. 96
Status: No Further Action Allowed, April 2013
Under this bill, in addition to any other remedy or penalty, the Labor Commissioner could impose an administrative penalty against an employer who misclassifies an employee of the employer as an independent contractor or otherwise fails to properly classify a person as an employee of the employer. The administrative penalty would be as follows:
- First offense:
- At least $250 but less than $1,000 for each employee or person who is misclassified unintentionally or is otherwise not properly classified unintentionally.
- At least $5,000 but less than $15,000 for each employee or person who is misclassified willfully or is otherwise not properly classified willfully.
- Second offense:
- At least $15,000 but less than $25,000 for each employee or person misclassified or otherwise not properly classified.
- Third or subsequent offense:
- At least $25,000 for each employee or person misclassified or otherwise not properly classified.
Additionally, the Labor would be allowed to submit a notice to the Secretary of State requiring the revocation or suspension of the state business license, if any, issued to the employer, and the Secretary of State would be required to, as soon as practicable after receiving the notice, revoke or suspend the state business license for not more than three years.
Before enforcing an administrative penalty, the bill required the Labor Commissioner to provide the employer with notice and an opportunity for a hearing. The Labor Commissioner may impose the administrative penalty against the employer if the employer, during any such hearing, fails to prove to the satisfaction of the Labor Commissioner that:
- The employee is not misclassified as an independent contractor; or
- The employer did not otherwise fail to properly classify the person as an employee of the employer,
The bill also requires every employer to post a notice upon his or her premises in a conspicuous place identifying the employer’s industrial insurer. The notice is required to include the insurer’s name, business address, and telephone number and the name, business address and telephone number of its nearest adjuster in this State. The employer shall at all times maintain the notice provided for the information of his or her employees. The notice also prominently set forth the definitions of “employee,” and “independent contractor.”
The bill also provides that a person who, for money or other valuable consideration, knowingly advises an employer or any employee, officer or agent of an employer to misrepresent the classification or duties of an employee of the employer, including, without limitation, misrepresenting that the employee is an independent contractor, is liable in a civil action commenced by the Attorney General for:
- First occurrence:
- Not more than $5,000;
- Second occurrence:
- Not more than $15,000;
- Third occurrence
- Not more than $25,000.
Additionally, in a civil action as described above, the person is liable for an amount that is equal to three times the total amount of any reasonable expenses incurred by the State in enforcing the provisions against the person.
