AN ACT TO ENACT THE UNIFORM WORKER CLASSIFICATION ACT.
Adds new Article 24, Uniform Worker Classification Act, to GS Chapter 95, providing as follows. Sets out NCGA findings and states the Article's purpose. Classifies a person as an independent contractor if any of the following are met: (1) the person signs a written contract with the principal stating the principal's intent to retain the person's services as an independent contractor and contains acknowledgements that the person understands that the person is providing services for the principal as an independent contractor, not going to be treated as an employee of the principal, not going to be provided by the principal with either worker's compensation or unemployment compensation benefits, is obligated to pay all applicable taxes, is responsible for the majority of supplies and other variable expenses that the person incurs in connection with performing the contracted-for services unless the expenses are for travel that is not local, the expenses are reimbursed under an express provision of the contract, or the supplies or expenses reimbursed are commonly reimbursed under industry practice; (2) the person has either filed, intends to file, or is contractually required to file an income tax return for a business or for earnings from self-employment; (3) the person provides services through a business entity or through a registered sole proprietorship; (4) with the exception of the exercise of control by the party that engages the worker necessary to ensure the worker's compliance with obligations required by a governmental or regulatory entity, or to protect persons or property, or to protect a franchise brand, the worker has the right to control the manner and means by which the work is done even though he or she may not have control over the final result of the work; (5) the person satisfies three or more of nine specified criteria, including the person controls where the services are performed except for those that can only be performed at specific locations, the person is free to exercise independent initiative in soliciting others to purchase his or her services, the person cannot be required to perform additional services without a new or modified contract, or the person is responsible for maintaining and bearing the costs of any required business licenses, insurance, certifications, or permits required to perform the services. Classifies workers who do not meet the above conditions as employees. Specifies that nothing above requires a party engaging a worker to classify a worker who meets the criteria above as an independent contractor; allows the party engaging the worker to hire the worker as an employee. Prohibits a city, county, municipality, unincorporated community, township, special district, airport authority, port authority, or other local political subdivision of the State from adopting any law, ordinance, regulation, code, charter, regulation, or other guidance in conflict with the new Article. Sets out exemptions. Includes a severability clause.
Amends GS 143-786 by making the provisions of new Article 24 applicable in GS Chapter 143's Article 83, Employee Fair Classification Act. Makes conforming changes.
Effective July 1, 2021.
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