Cooper signs worker misclassification, tax bills into law (NC)

By Associated Press |
Posted: Fri 9:34 PM, Aug 11, 2017

RALEIGH, N.C. (AP) – Gov. Roy Cooper says legislation he signed will help North Carolina workers when employers intentionally misclassify them as independent contractors to avoid paying taxes and other benefits.

Cooper signed two bills Friday the General Assembly approved last week.

One addresses employee “misclassification” by confirming the creation of an office within the North Carolina Industrial Commission to investigate companies and discourage the practice. Former Gov. Pat McCrory signed an executive order directing the commission’s new work, but the law makes the effort permanent.

The other signed bill makes various tax law changes, including the creation of an income tax refund “checkoff” for breast and cervical cancer detection.

Two other bills remain on Cooper’s desk. He has until late Monday to sign or veto them. Otherwise, they become law.

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NLRB Memo Lays Out Misclassification Theory

August 30, 2016
By Lawrence E. Dubé

Aug. 29 – The National Labor Relations Board’s general counsel released a legal memorandum explaining his theory that an employer committed an unfair labor practice by misclassifying employee drivers as independent contractors (Pac. 9 Transp., Inc. , NLRB Div. of Advice, No. 21-CA-150875, 12/18/15 [released 8/26/16]).

The unfair labor practice theory involving worker misclassification hasn’t previously been tested before the NLRB or the courts, but the memorandum shows that’s the approach the general counsel will likely follow in other independent contractor disputes.

In the memorandum released Aug. 26, the NLRB’s Division of Advice wrote that by misinforming drivers they were independent contractors, Pacific 9 Transportation Inc. interfered with the drivers’ rights under the National Labor Relations Act to organize or engage in concerted activity for their mutual aid or protection.

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Bill Filed to Crack Down on Worker Misclassification in Texas Construction Industry

By Scott Braddock on Mon, 12/08/2014 – 12:49pm 

Far too often, construction companies cheat taxpayers and their workers by pretending their employees are independent subcontractors when, by law, they should be paid as employees. It’s a practice known as worker misclassification. Some ethical contractors have called it a “cancer that is eating at the heart of our industry.”

If a person is paid as a subcontractor, that individual is on the hook for payroll taxes and benefits like health insurance. When they’re injured, uninsured workers are often dropped off at county hospitals and the rest of us end up paying more in health costs and local property taxes.

Construction Citizen’s Special Report, “Thrown Away People,” outlined many of the problems presented to society by the degradation of the employer – employee relationship. The McClatchy Newspaper chain this year followed up with a powerful series called “Contract to Cheat,” which took another in-depth look at the problem.

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