Introduced

SB 929 - The act bars employers with 5 or more employees 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 and 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 or other forms verifying the individual is an independent contractor. Injunctions may be sought and employers shall be charged $50 per day per misclassified worker up to a maximum of $50,000 for violations. Penalties are increased for repeat offenders in an amount of $100 per day per misclassified worker up to $100,000.

This act is similar to SB 928 (2006), SB 424 (2007), and SB 178 (2007).

CHRIS HOGERTY


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