Effective December 31, 2017, the North Carolina Employee Fair Classification Act creates the Employee Classification Section of the North Carolina Industrial Commission. This new Section will be authorized to receive and investigate reports by employees claiming to be misclassified as independent contractors, and to share information with other state agencies, including the Department of Labor, the Division of Employment Security, the Department of Revenue and the Industrial Commission.
New Posting: Although the legislation does not revise the existing definitions of “employee” or “independent contractor” under state law, it will require employers to post a notice in the workplace stating that workers must be treated as employees unless they are independent contractors and that those who believe they have been misclassified have the right to report the alleged misclassification to the Employee Classification Section. The notice also must provide the physical and e-mail addresses and telephone number where alleged misclassifications may be reported.
Companies should ensure that all persons performing work for their organizations and being compensated accordingly, are correctly classified. For assistance with compliance, please contact CoreHR Consulting.