Legislative Updates

Current Legislation

1. Illinois Employee Classification Act of 2007
2. NJ Construction Industry Independent Contract Act

Executive Order

Pending Legislation

1. Maryland House of Delegates Bill #12 -Include Editor’s note: (Introduced in special session in October of 2007 and should be reintroduced in regular session in January of 2008)

2. Kentucky Independent Contractor Law - AN ACT relating to misclassification of employees.

1.) The Social and Economic Costs of Employee Misclassification in Construction
Elaine Bernard, Ph.D. Robert Herrick, Sc.D., Francoise Carre, Ph.D.; Randall Wilson, (University of Massachusetts, Boston; Construction Policy Research Center Labor and Work life Program, Harvard Law School and Harvard School of Public Health) (2004).

2.) The Social and Economic Costs of Employee Misclassification in the Maine Construction Industry,

Maine Report (April 2005)
Massachusetts Report (December 2004)

These two studies have taken a first and significant step in documenting employee misclassification in the Massachusetts and Maine construction industries. Misclassification occurs when employers treat workers who would otherwise be waged or salaried employees as independent contractors (self employed). Forces promoting employee misclassification include the desire to avoid the costs of payroll taxes and of mandated benefits. Employee misclassification creates severe challenges for workers, employers, and insurers as well as for policy enforcement. This report documents the dimensions of misclassification and its implications for Unemployment Insurance and Income tax collection and for worker compensation insurance.

3.) The Economic Costs of Employee Misclassification in the State of Illinois

Michael P. Kelsay, Ph.D., James I. Sturgeon, Ph.D., Kelly D. Pinkham, M.S., (Department of Economics University of Missouri-Kansas City)(December 2006)

4.) Office of the Legislative Auditor State of Minnesota - Misclassification of Employees as Independent Contractors

The Program Evaluation Division was directed to conduct this study by the Legislative Audit Commission in April 2007.Deborah Parker Junod (project manager), and Carrie Meyerhoff

5.) NELP Justice for Low-Wage & Immigrant Worker Project Summary of Pending Legislation

The following is a select summary of recent state legislative activity aimed at misclassification of employees as independent contractors

6.) Building Up New York, Tearing Down Job Quality

Taxpayer Impact of Worsening Employment Practices in New York City’s Construction Industry

7.) Misclassification of wages: A problem that hurts everyone