SB 424
Bars employers from misclassifying employees as independent contractors
Sponsor:
LR Number:
1725S.01I
Last Action:
2/5/2007 - Second Read and Referred S Small Business, Insurance & Industrial Relations Committee
Journal Page:
S196
Title:
Calendar Position:
Effective Date:
August 28, 2007

Current Bill Summary

SB 424 - The act bars employers from knowingly misclassifying employees. Employers must submit federal IRS 1099-MISC forms to the Department of Revenue and penalties for failing to do so are provided. The Attorney General has the power to investigate alleged misclassifications and enforce the section.

The state carries the burden of proving that the employer misclassified the worker unless the worker works at certain animal feeding facilities whereby the burden shifts the employer. There is a rebuttable presumption that an unauthorized alien is an employee under the act and shall be treated so if the employer cannot produce an I-9 form verifying the legal status of the worker. Injunctions may be sought and fines are provided for violations.

This act is similar to SB 928 (2006), and SB 178 (2007).

CHRIS HOGERTY

Amendments