An effort to police businesses that wrongly treat employees as independent contractors won legislative approval Thursday.
Under the proposed law, a section of the state Industrial Commission will take complaints from workers and coordinate with other agencies and district attorneys to make sure civil penalties are collected. The House approved the bill 104-0. It now goes to Gov. Roy Cooper for his consideration.
The proposed law is the outgrowth of a 2014 McClatchy series about employee misclassification. The articles highlighted problems that result from companies treating employees as independent contractors. Companies can avoid paying unemployment insurance, worker’s compensation or payroll taxes, and leave some workers without some employee protections.
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Companies would have to tell occupational licensing boards about investigations for employee misclassification and the results of those investigations.
Legislators object to misclassification because it allows companies to out-bid law-abiding competitors for construction jobs.