A bill before the North Carolina House of Representatives would require employers to give employees notice of their employment status at the time of hire and when any material change in the employment relationship occurs.
Specifically, the bill would require employers to state that the worker is either an employee or an independent contractor. The legislation comes amidst a push at both federal and state levels to crack down on employee misclassification.
The bill, H.B. 826, would also institute fines for misclassification of independent contractors and raise fines for intentional violations. It would define “employment status” using common-law rules.
Note: Whether this bill passes or not, employers should know the proper classifications of all their employees and contractors. Periodically review classifications with your attorney to stay in compliance.