Senators Sherrod Brown (D-Ohio), Tom Harkin (D-Iowa), and Richard Blumenthal (D-Conn.) have introduced the Payroll Fraud Prevention Act (S. 770), as a trimmed-down version of last years the Employee Misclassification Prevention Act Taking a cue from state legislators that have labeled new state laws involving wage violations as a form of “payroll theft,” the sponsors of the bill characterize misclassification of employees as a form of “payroll fraud.”
It the bill were to be enacted, it would expand the Federal Fair Labor Standards Act (which currently addresses minimum wage, overtime, and child labor laws) to cover misclassification of employees as independent contractors. It would create a new definition of workers called “non-employees,” impose upon businesses the obligation to provide a classification notice for both “non-employees” and “employees,” make the misclassification of “employees” as “non-employees” a new labor law offense, and expose businesses to fines of up to $5,000 per worker for each violation of the law. Read More
Make No Mistake, If Enacted This Law Can Adversely Affect You And Your Business!!
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