Governor Signs Anti-Misclassification Bill

Nebraska Gov. Dave Heineman (R) has signed legislation to prohibit contractors from misclassifying employees as independent contractors.Legislative Bill 563 by Sen. Steve Lathrop of Omaha was passed by the Legislature on a 43-1 vote on April 12.Lathrop said, in introducing the bill, that such misclassification "hurts employees, legitimate employers and the state" by making employees ineligible for unemployment and workers’ compensation benefits, creates an unfair advantage for unscrupulous contractors and prevents the state from collecting taxes for unemployment programs.LB 563 creates a...