,,ii  #aac? ,,congress  #a/ ,session    
,s4 #afhg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #ab1 #bjac,mr4
 ,casey 7= himself1 ,mr4 ,br[n1 ,mr4    
,h>k91 & ,mr4 ,frank57 introduc$ !      
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,heal?1 ,education1  
,labor1 & ,p5sions  ,a ,,bill  ,to am5d 
! ,fair ,labor ,/&>ds ,act ( #aich to   
ensure t employees are n misclassifi$ z 
non-employees1 & = o!r purposes4  #a4   
,%ort title ,?is ,act may be cit$ z !   
,payroll ,fraud ,prev5tion ,act ( #bjac4
  #b4 ,classification ( employees &     
non-employees  7a7 ,def9itions ,section 
#c ( ! ,fair ,labor ,/&>ds ,act ( #aich 
7#bi ,u4,s4,c4 #bjc7 is am5d$ by add+ at
 ! end ! foll[+3  7z7 ,non-employee     
means an individual :o-- 7#a7 a p]son   
has engag$1 9 ! c\rse ( ! trade or      
bus9ess ( ! p]son1 = ! p]=mance ( labor 
or s]vices2 &  7#b7 is n an employee ( !
 p]son4  7aa7 ,cov]$ individual :5 us$ )
 respect to an employ] or o!r p]son     
means-- 7#a7 an employee ( ! employ]2 or

  7#b7 a non-employee ( ! p]son 7includ+
 a p]son :o is an employ]7-- 7,a7 :om ! 
p]son has engag$1 9 ! c\rse ( ! trade or
 bus9ess ( ! p]son1 = ! p]=mance ( labor
 or s]vices2 &  7,b7 7i7 ) respect to   
:om ! p]son is requir$ to file an       
in=mation return "u section #fjda;,a7a7 
( ! ,int]nal ,rev5ue ,code ( #aihf2 or  
7ii7 :o is provid+ labor or s]vices to !
 p]son ?r\gh an entity t is a tru/1     
e/ate1 p>tn]%ip1 association1 company1  
or corporation 7z su* t]ms are us$ 9    
section #ggja7;a77#a7 ( ! ,int]nal      
,rev5ue ,code ( #aihf7 if-- 7,i7 su*    
individual has an own]%ip int]e/ 9 !    
entity2  7,,ii7 creation or ma9t5ance ( 
su* entity is a condition = ! provision 
( su* labor or s]vices to ! p]son2 &    
7,,iii7 ! p]son w\ld be requir$ to file 
an in=mation return = ! entity "u       
section #fjda;,a7a7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf if ! entity 0 an         
individual4  4  7b7 ,classification z   
employees ,section #aa7;c7 ( ! ,fair    
,labor ,/&>ds ,act ( #aich 7#bi         

,u4,s4,c4 #baa7;c77 is am5d$-- 7#a7 by  
/rik+ 7c7 ,e employ] subject to any     
provision ( ?is ,act or ( any ord] issu$
 "u ?is ,act & ins]t+ ! foll[+3  7c7    
,recordkeep+2 classification2 notice    
7#a7 ,recordkeep+ ,e p]son subject to   
any provision ( ?is ,act or ( any ord]  
issu$ "u ?is ,act  2 &  7#b7 by add+ at 
! end ! foll[+3  7#b7 ,classification   
7,a7 ,9 g5]al ,e p]son 7includ+ e       
employ] & ent]prise71 :o employs any    
employee engag$ 9 comm]ce or 9 !        
production ( goods = comm]ce or engages 
any non-employee engag$ 9 comm]ce or 9 !
 production ( goods = comm]ce1 %all--   
7i7 accurately classify ea* cov]$       
individual z an employee or a           
non-employee 7z ! case may be72  7ii7   
provide1 to ea* cov]$ individual1 a     
writt5 notice t-- 7,i7 in=ms ! cov]$    
individual ( ! classification ( su*     
individual1 by ! p]son submitt+ !       
notice1 z an employee or a non-employee2
  7,,ii7 includes a /atem5t direct+ su* 
individual to ! ,dep>tm5t ( ,labor      

website e/abli%$ "u section #c ( !      
,payroll ,fraud ,prev5tion ,act ( #bjac1
 or o!r appropriate res\rces1 = !       
purpose ( provid+ fur!r in=mation ab\t !
 legal rights ( an employee2  7,,iii7   
includes ! address & telephone numb] = !
 applicable local (fice ( ! ,dep>tm5t ( 
,labor2 &  7,,iv7 includes = ea* cov]$  
individual classifi$ z a non-employee by
 ! p]son provid+ ! notice1 ! foll[+     
/atem5t3 ,y\r rights to wage1 h\r1 & o!r
 labor protections dep5d ^u y\r prop]   
classification z an employee or a       
non-employee4 ,if y h any que/ions or   
conc]ns ab\t h[ y h be5 classifi$ or    
suspect t y may h be5 misclassifi$1     
contact ! ,u4,s4 ,dep>tm5t ( ,labor42 & 
7iii7 ma9ta9 a copy ( su* notice z a    
requir$ record "u p>agraph 7#a74  7,b7  
,tim+ ( notice  7i7 ,9 g5]al ,! notice  
describ$ 9 subp>agraph 7,a77ii7 %all be 
provid$1 at a m9imum1 to ea* cov]$      
individual n lat] ?an #f mon?s aft] !   
date ( enactm5t ( ! ,payroll ,fraud     
,prev5tion ,act ( #bjac1 & !reaft]--    

7,i7 = ea* new employee1 ^u employm5t2 &
  7,,ii7 = ea* new non-employee1 ^u     
comm5cem5t ( ! labor or s]vices provid$ 
by ! non-employee4  7ii7 ,*ange 9 /atus 
,ea* p]son requir$ to provide a notice  
"u subp>agraph 7,a77ii7 to a cov]$      
individual %all also provide su* notice 
to su* individual ^u *ang+ ! /atus ( su*
 individual z an employee or a          
non-employee4  7,c7 ,presumption  7i7 ,9
 g5]al ,= purposes ( ?is ,act & !       
regulations or ord]s issu$ "u ?is ,act1 
a cov]$ individual to :om a p]son is    
requir$ to provide a notice "u          
subp>agraph 7,a77ii7 %all be presum$ to 
be an employee ( ! p]son if ! p]son has 
n provid$ ! individual ) su* notice )9 !
 "t requir$ "u subp>agraph 7,b74  7ii7  
,rebuttal ,! presumption "u clause 7i7  
%all be rebutt$ only ?r\gh ! pres5tation
 ( cle> & conv9c+ evid5ce t a cov]$     
individual describ$ 9 su* subp>agraph is
 n an employee ( ! p]son4  4  7c7       
,special prohibit$ acts ,section #ae7;a7
 ( ! ,fair ,labor ,/&>ds ,act ( #aich   

7#bi ,u4,s4,c4 #bae7;a77 is am5d$-- 7#a7
 by /rik+ p>agraph 7#c7 & ins]t+ !      
foll[+3  7#c7 to dis*>ge or 9 any o!r   
mann] discrim9ate aga9/ any cov]$       
individual 7includ+ an employee7 because
 su* individual has-- 7,a7 oppos$ any   
practice1 fil$ any petition or compla9t1
 or in/itut$ or caus$ to be in/itut$ any
 proce$+-- 7i7 "u or relat$ to ?is ,act 
7includ+ conc]n+ ! /atus ( a cov]$      
individual z an employee or a           
non-employee = purposes ( ?is ,act72 or 
7ii7 conc]n+ ! /atus ( a cov]$          
individual z an employee or a           
non-employee = employm5t tax purposes )9
 ! mean+ ( subtitle ,c ( ! ,int]nal     
,rev5ue ,code ( #aihf2  7,b7 te/ifi$ or 
is ab\t to te/ify 9 any proce$+ describ$
 9 subp>agraph 7,a72 or  7,c7 s]v$1 or  
is ab\t to s]ve1 on an indu/ry          
committee2  2  7#b7 9 p>agraph 7#e71 by 
/rik+ ! p]iod at ! end & ins]t+ 2 &2 &  
7#c7 by add+ at ! end ! foll[+3  7#f7 to
 wrongly classify an employee ( ! p]son 
z a non-employee 9 accordance ) section 

#aa7;c77#b74  4  7d7 ,special p5alty =  
c]ta9 misclassification1 recordkeep+1 & 
notice violations ,section #af ( ! ,fair
 ,labor ,/&>ds ,act ( #aich 7#bi        
,u4,s4,c4 #baf7 is am5d$-- 7#a7 9       
subsection 7b7-- 7,a7 9 ! six? s5t5ce1  
by /rik+ any employee ea* place ! t]m   
occurs & ins]t+ any cov]$ individual2   
7,b7 9 ! f\r? s5t5ce-- 7i7 by /rik+     
employees & ins]t+ cov]$ individual2 &  
7ii7 by /rik+ he gives 8 cons5t & ins]t+
 su* cov]$ individual cons5ts2  7,c7 9 !
 ?ird s5t5ce-- 7i7 by /rik+ ei!r ( !    
prec$+ s5t5ces & ins]t+ any ( ! prec$+  
s5t5ces2  7ii7 by /rik+ "o or m         
employees & ins]t+ "o or m cov]$        
individuals2 &  7iii7 by /rik+ 9 behalf 
( himself or !mselves & o!r employees & 
ins]t+ on behalf ( su* cov]$ individual 
or individuals & o!r cov]$ individuals2 
&  7,d7 by ins]t+ aft] ! fir/ s5t5ce !  
foll[+3 ,su* liquidat$ damages are d\bl$
 7subject to section #aa ( !            
,portal-to-,portal ,act ( #aidg 7#bi    
,u4,s4,c4 #bfj77 :]e1 9 addition to     

violat+ ! provisions ( section #f or #g1
 ! employ] has violat$ ! provisions (   
section #ae7;a77#f7 ) respect to su*    
employee or employees42 &  7#b7 9       
subsection 7e71 by /rik+ p>agraph 7#b7 &
 ins]t+ ! foll[+3  7#b7 ,any p]son :o   
violates section #f1 #g1 #aa7;c71 or    
#ae7;a77#f7 %all be subject to a civil  
p5alty1 = ea* employee or o!r individual
 :o 0 ! subject ( su* a violation1 9 an 
am\nt-- 7,a7 n to exce$ #a1ajj2 or  7,b7
 9 ! case ( a p]son :o has repeat$ly or 
willfully committ$ su* violation1 n to  
exce$ #e1jjj4  4  #c4 ,employee rights  
website ,n lat] ?an #ahj days aft] !    
date ( enactm5t ( ?is ,act1 ! ,secret>y 
( ,labor %all e/abli% a s+le webpage on 
! ,dep>tm5t ( ,labor website t summ>izes
 9 pla9 language ! rights ( employees & 
non-employees "u ! ,fair ,labor ,/&>ds  
,act ( #aich 7#bi ,u4,s4,c4 #bja et     
seq471 includ+ ! rights describ$ 9 !    
am5dm5ts made by section #b4  #d4       
,misclassification ( employees =        
unemploym5t comp5sation purposes  7a7 ,9

 g5]al ,section #cjc7;a7 ( ! ,social    
,security ,act 7#db ,u4,s4,c4 #ejc7;a77 
is am5d$-- 7#a7 9 p>agraph 7#aa77;,b71  
by /rik+ ! p]iod & ins]t+ 2 &2  7#b7 9  
p>agraph 7#ab71 by /rik+ ! p]iod &      
ins]t+ 2 &2 &  7#c7 by add+ aft]        
p>agraph 7#ab7 ! foll[+3  7#ac7 7,a7    
,su* audit+ & inve/igative proc$ures z  
may be necess>y to id5tify employ]s t h 
n regi/]$ "u ! ,/ate law or t are pay+  
unreport$ wages1 :]e ^! actions or      
omissions by ! employ]s h ! effect (    
exclud+ employees f unemploym5t         
comp5sation cov]age2 &  7,b7 ! mak+ (   
qu>t]ly reports to ! ,secret>y ( ,labor 
79 su* =m z ! ,secret>y ( ,labor may    
require7 describ+ ! results ( !         
proc$ures "u subp>agraph 7,a72 &  7#ad7 
! e/abli%m5t ( adm9i/rative p5alties =  
misclassify+ employees1 or pay+         
unreport$ wages to employees )\t prop]  
recordkeep+1 = unemploym5t comp5sation  
purposes4  4  7b7 ,review ( audit+      
programs ,! ,secret>y ( ,labor %all     
include1 9 ! ,dep>tm5t ( ,labor's sy/em 

= measur+ ! p]=mance ( ,/ates 9 conduct+
 unemploym5t comp5sation tax audits1 a  
specific measure ( ! effectiv5ess (     
,/ates 9 id5tify+ ! und]report+ ( wages 
& ! und]paym5t ( unemploym5t comp5sation
 contributions 7includ+ ! effectiv5ess (
 ,/ates 9 id5tify+ in/ances ( su*       
und]report+ or und]paym5ts despite !    
abs5ce ( cancell$ *ecks1 orig9al "t     
%eets1 or o!r simil> docum5tation74  7c7
 ,effective date  7#a7 ,9 g5]al ,except 
z provid$ 9 p>agraph 7#b71 ! am5dm5ts   
made by subsection 7a7 %all take effect 
#ab mon?s aft] ! date ( enactm5t ( ?is  
,act4  7#b7 ,exception ,if ! ,secret>y (
 ,labor f9ds t legislation is necess>y =
 ! unemploym5t comp5sation law ( a ,/ate
 to comply ) ! am5dm5ts made by         
subsection 7a71 su* am5dm5ts %all n     
apply ) respect to su* law until ! lat] 
(-- 7,a7 ! day aft] ! close ( ! fir/    
regul> session ( ! legislature ( su*    
,/ate t beg9s aft] ! date ( enactm5t (  
?is ,act2 or  7,b7 #ab mon?s aft] ! date
 ( enactm5t ( ?is ,act4  7d7 ,def9ition 

( ,/ate ,= purposes ( ?is section1 ! t]m
 ,/ate has ! mean+ giv5 ! t]m 9 section 
#ccjf7;j7 ( ! ,int]nal ,rev5ue ,code (  
#aihf4  #e4 ,dep>tm5t ( ,labor          
coord9ation1 ref]ral1 & regulations  7a7
 ,coord9ation & ref]ral ,not)/&+ any o!r
 provision ( law1 any (fice1            
adm9i/ration1 or division ( ! ,dep>tm5t 
( ,labor t1 :ile 9 ! p]=mance ( its     
(ficial duties1 obta9s in=mation reg>d+ 
! misclassification by a p]son subject  
to ! provisions ( ! ,fair ,labor ,/&>ds 
,act ( #aich 7#bi ,u4,s4,c4 #bja et     
seq471 or any ord] issu$ "u su* ,act (  
any individual reg>d+ :e!r su*          
individual is an employee or a          
non-employee engag$ 9 ! p]=mance ( labor
 or s]vices = purposes ( section #f or  
#g ( su* ,act 7#bi ,u4,s4,c4 #bjf1      
#bjg71 or 9 records requir$ "u section  
#aa7;c7 ( su* ,act 7#bi ,u4,s4,c4       
#baa7;c771 %all report su* in=mation to 
! ,wage & ,h\r ,division ( ! ,dep>tm5t (
 ,labor4 ,! ,wage & ,h\r ,division may  
report su* in=mation to ! ,int]nal      

,rev5ue ,s]vice z ! ,wage & ,h\r        
,division consid]s appropriate4  7b7    
,regulations ,! ,secret>y ( ,labor %all 
promulgate regulations to c>ry out ?is  
,act & ! am5dm5ts made by ?is ,act4  #f4
 ,t>get$ audits ,! audits ( employ]s    
subject to ! ,fair ,labor ,/&>ds ,act ( 
#aich 7#bi ,u4,s4,c4 #bja et seq47 t are
 conduct$ by ! ,wage & ,h\r ,division ( 
! ,dep>tm5t ( ,labor %all include c]ta9 
indu/ries ) frequ5t incid5ce (          
misclassify+ employees z non-employees1 
z det]m9$ by ! ,secret>y ( ,labor4