State News

States Clarify Worker Classification in the Sharing Economy

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Several states have given businesses in the sharing economy something to celebrate: legislation that would clarify the independent-contractor status of individuals who obtain client opportunities through technology platforms. These legislative initiatives take two forms, namely, bills narrowly focused on transportation network company drivers (e.g., individuals who drive for ride-sharing companies such as Uber and Lyft), and broader bills that apply to individuals… Read more →

North Carolina Governor Resurrects Failed Worker-Classification Enforcement Proposal

North Carolina Governor Resurrects Failed Worker-Classification Enforcement Proposal

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State agencies in North Carolina will be permitted to share information and work collaboratively to bring enforcement actions against suspected worker misclassification – in spite of the defeat of proposed legislation, H.B. 482, which would have permitted these activities. North Carolina Governor Pat McCrory (R) resurrected the information sharing elements of the failed bill by issuing Executive Order No. 83… Read more →

California Motor Carriers May Settle Misclassification Liability

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California motor carriers may relieve themselves from liability for penalties associated with the misclassification of drivers as independent contractors, provided they agree to reclassify their drivers as employees and pay applicable costs and penalties. On October 10, 2015, California Governor Jerry Brown (D) approved A.B. 621, entitled the Motor Carrier Employer Amnesty Program (“Program”). The Program permits eligible motor carriers… Read more →

Virginia Department of Labor and Industry Commissioner Establishes a Policy to Address Worker Misclassification

Virginia Department of Labor and Industry Commissioner Establishes a Policy to Address Worker Misclassification

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On June 2, 2015, the Commissioner of the Virginia Department of Labor and Industry issued a memorandum to the Virginia Occupational Safety and Health (“VOSH”) staff which established a policy to address the misclassification of employees in VOSH inspections and investigations. The goal of the policy is to “level the playing field” for employers who comply with applicable labor laws… Read more →

Bills Introduced in Massachusetts Would Change Independent-Contractor Definition

Bills Introduced in Massachusetts Would Change Independent-Contractor Definition

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The Commonwealth of Massachusetts has attracted national attention by its very demanding “ABC” test for establishing an independent-contractor relationship. The current test provides that: an individual performing any service, except as authorized under this chapter, shall be considered to be an employee under those chapters unless:— (1) the individual is free from control and direction in connection with the performance… Read more →