SB 863
Modifies provisions relating to worker classification
LR Number:
Last Action:
3/8/2022 - SCS Voted Do Pass S Small Business and Industry Committee (4138S.02C)
Journal Page:
Calendar Position:
Effective Date:
August 28, 2022

Current Bill Summary

SCS/SB 863 - This act provides that, for purposes of provisions of law relating to 1) workers' compensation, 2) employment security, and 3) the classification of workers for purposes of public works projects, any person who performs work for an employer and satisfies all of the following criteria shall be considered an independent contractor:

• The person has signed a written contract with an employer that states the employer's intent to retain the services of the person as an independent contractor and the person is required by the contract to hold any state or local business license and to maintain any occupational license;

• The person either has filed, intends to file, or is contractually required to file, in regard to the fees earned from work, an income tax return with the Internal Revenue Service for a business or for earnings from self-employment or the person provides services through a business entity;

• The person has the right to control the manner and means by which the work is to be accomplished, even though he or she may not have control over the final result of the work; and

• The person meets at least three other criteria set forth in the act.

An employer is not required to classify any person who is considered an independent contractor as an employee, provided that the employer may hire and classify such person as an employee at any time.

This act does not apply to the following:

· Service consisting of prearranged passenger transport provided by transportation network drivers through a digital network offered by a transportation network company;

· Non-profit entities;

· State or local government entities; or

· Federally recognized Indian tribes.

Additionally, this act does not overrule any exemptions from the definition of employee or employment found in other sections of state law.

No political subdivision of the state shall enact a law conflicting with this act.

A person is conclusively presumed to be an independent contractor if that person satisfies the definition of a direct seller under the employment security laws.

The act furthermore classifies delivery network company drivers as independent contractors if certain conditions, as outlined in the act, are met.

This act is substantially similar to HB 2498 (2022) and similar to SB 148 (2021), HB 214 (2021), SB 740 (2020), SB 732 (2020), HB 1920 (2020), HB 2071 (2020), SB 313 (2019), and HCS/HB 1137 (2019).



No Amendments Found.