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North Carolina Legislature Establishes New Office to Investigate Employee Misclassification

On August 11, 2017, North Carolina Governor Roy Cooper signed into law a new bill that will create a new Employee Classification Section within the North Carolina Industrial Commission, effective December 31.  This new sub-agency will “investigate reports of employee misclassification and coordinate with and assist all relevant State agencies in recovering any back taxes, wages, benefits, penalties, or other monies owed as a result of an employer engaging in employee misclassification.”

During the signing of the bill North Carolina Governor Roy Cooper said “This law is an important step in helping workers who are treated unfairly as independent contractors when they are actually employees, and by leveling the playing field for companies who are obeying the law and doing things the right way.”

The bill will also change North Carolina’s workplace wage and hour poster.  The new poster will give notice that all workers will be treated as employees unless they are independent contractors under State law and information on how to report suspected misclassification to the new Employee Classification Section also will be added to North Carolina’s workplace wage and hour poster.

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