Senate Fails Legislation That Would’ve Allowed Certain Workers to Sue for Misclassification as ICs

Rhode Island Senate Bill 2375 did not pass a vote on June 24 that would’ve made it possible for workers to sue companies that had misclassified them as independent contractors, if those companies are contractors or subcontractors engaged in state public works projects. The bill would’ve amended the current statute that allows for civil action by employees or former employees to collect late wages or benefits due (§ 37-13-17) and would’ve extended the same remedies:

  • Injunctive relief
  • Damages amounting to double the unpaid wages or benefits owed
  • Reasonable attorneys’ fees and costs

The statute of limitations for a worker to sue under this provision would’ve been three years from the time of the alleged violation. However, the suit could not have been filed in addition to any enforcement procedures by the director of labor and training (listed in § 37-13-14.1) and must’ve been filed prior to the director of labor and training issuing a notice of an administrative hearing on the alleged violation.

Senate Bill 2375, however, did not indicate which definition of “employee” would’ve been determinative for purposes of the new sanctions which raised questions about which definition of “employee” would’ve applied for purposes of establishing misclassification.

The bill failed on June 24, following a study by the Senate Committee on Labor.

Read the full text of the bill here.

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