New Penalties for Misclassifying Workers Take Effect

Nevada employers will face a penalty of $2,500 for willfully misclassifying employees as contractors, under a law that went into effect Monday. Employers will face a $5,000 penalty for subsequent incidents of intentional misclassification, under provisions in Senate Bill 493 that became effective July 1. The bill introduced by three Democrats from Las Vegas also prohibits employers from pressuring workers to acquiesce to contractor status, or to create businesses that would allow them to be classified as contractors. At the same time, the bill creates the Task Force on Employee Misclas...