New Law Targets Employee Misclassification

On August 11, Governor Cooper signed SB 407 (Employee Misclassification/IC Changes) into law. Known as the “Employee Fair Classification Act,” this law is designed to respond to the practice of those employers who hire an individual to work under the business’s control as an employee but classifies the individual as an independent contractor.
NCHBA, along with other major employer associations, supported this bill because employee misclassification not only harms workers but it also creates an uneven playing field where employers who follow the law are at a distinct competitive disadvantage with those who engage in this illegal activity.

Leave a Reply