Bill Summary for S 694 (2015-2016)

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Summary date: 

Apr 1 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 694 (Public) Filed Thursday, March 26, 2015
AN ACT TO ENCOURAGE PARENT EDUCATION DURING WELL‑CHILD VISITS AT SPECIFIC AGE INTERVALS REGARDING TYPE I DIABETES AND TO AMEND THE LAW PERTAINING TO PHARMACY BENEFIT MANAGERS.
Intro. by Newton, Lee, Daniel.

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Bill summary

Enacts new Article 81 in GS Chapter 143, Employee Fair Classification Act, clarifying the distinction between employees and independent contractors. Sets out definitions for use in the Article, including employee misclassification and OSBM (Office of State Budget and Management). Establishes the Employee Misclassification Division (Division) in the OSBM and sets out 10 powers and duties of the Division, including assessing administrative civil penalties for instances of employee misclassification and developing methods and strategies for information sharing between state agencies in order to identify misclassification. Provides for an informal advisory council to advise the director of the Division. Sets out minimum membership of the council including several state officers. Requires the Division to submit an annual report, no later than October 1 of each year, regarding the administration of this Article, to the Office of the Governor and the Joint Legislative Commission on Governmental Operations. Sets out minimum information requirements for the report. 

Specifies the factors that are to be considered in the determination of status as an independent contractor, including whether the individual has the freedom to use and independently control his or her own assistants. Prohibits an employer from improperly classifying an individual. Establishes a civil penalty for instances of misclassification, including an assessment of no more than $1,000 per misclassified employee. Provides regulations and factors to be considered in assessing the penalty. Provides a process by which a penalty can be appealed. 

Requires the Division to establish a temporary amnesty program to encourage the voluntary self-reporting by employers engaging in employee misclassification. Requires the Division to establish procedures for participation in the temporary amnesty program and sets out minimum requirements of the procedures.

Requires every state occupational licensing board or commission to require its licensees or permittees to certify that they have read and understood the employee misclassification notice in GS 143-763(a)(7). Failure to certify will result in a denial of a license or permit by the board or commission.  Provides that any records of the Division that are not civil penalty assessments or final orders are not public records but are subject to inspection by state and federal agencies as specified. 

Repeals GS 97-5.1, Presumption that taxicab drivers are independent contractors.

Amends GS 95-25.15(c) to require that an employee misclassification notice be added to NC Department of Labor posters and sets out the information that must be contained, including that any employee that believes they have been misclassified can report the suspected misclassification to the Division.

Amends GS 87-11 concerning the State Licensing Board for General Contractors providing that it has the authority to refuse or revoke a license or issue a reprimand if it is found that employee misclassification in violation of GS Chapter 143, Article 81, has occurred. Requires the State Licensing Board for General Contractors to include references to the prohibition of employee misclassification in its guidelines governing the suspension and revocation of licenses.

Amends GS 143-59.2(a), providing that vendors cannot enter into contracts for goods and services with any state government entity if they have been assessed a civil penalty for violating employee misclassification regulations within the five years prior to any bid solicitation. 

Amends GS 153A-134 and GS 160A-194, concerning permitted regulation and licensing for various occupations, businesses, trades, and entertainment by cities and counties, providing that any applicants subject to regulation and licensure by a city or county under these sections must certify that they have read and understand the employee misclassiification notice in GS 143-763(a)(7).

Amends GS 153A-360 and 160A-420 concerning construction and development inspections, providing that owners not subject to licensure requirements for building construction and alteration must certify to the city and county that they have read and understand the employee misclassiification notice in GS 143-763(a)(7).

Amends GS 97-2 the definitions section of the Workers' Compensation Act, deleting language in the definition for the term employee which established a rebuttable presumption that the term employee did not include anyone performing services in the sale of newspapers  or magazines to the ultimate customer as specified. 

Includes a severability clause. 

Effective July 1, 2015.