Misclassification Bill Fails to Pass

Thursday, October 1, 2015 | 0

North Carolina lawmakers failed to pass a bill aimed at cracking down on employers that misclassify workers as independent contractors before the Legislature adjourned on Tuesday, the Charlotte Observer reported.

The legislation was introduced because of investigative reporting by the Observer that misclassification was costing taxpayers at least $467 million annually in lost revenue from the contracting industry alone. However, it was lobbying by newspaper executives that helped stall the bill.

The newspaper industry wanted to preserve an exemption in current state law that creates a presumption that newspaper carriers are independent contractors. The version of House Bill 482 that passed the state Senate would have eliminated the 2003 exemption, but members of the House of Representatives were under pressure by newspaper publishers not to pass the bill, the Observer reported.

In the end, H 482 author Gary Pendleton, R-Raleigh, decided to let his bill die in the House Rules Committee. It can be revived next year.