Lawmakers in Virginia Inch Closer to Enacting a Stricter Worker Misclassification Bill into Law
Yesterday lawmakers in the Virginia House of Delegates advanced legislation aimed at punishing employers who misclassify their workers as independent contractors rather than employees. The bill (H.B. 1407) would impose a fine of up to $1,000 per worker on businesses that misclassify their employees as independent contractors. The maximum fines would be raised to $2,500 per misclassified worker for second offenses and to $5,000 for each additional violation. Unfortunately, the bills introduced in both the Virginia House and Senate contain an exemption for the “procurement of any construction or planning and design services for construction by a Virginia nonprofit corporation or organization.”
Virginia Senators previously approved a similar bill addressing misclassification (S.B. 744) on January 27. Differences in the bill must be reconciled before the measures can be sent to Governor Ralph Northam (D-VA) who is expected to sign it into law.
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