Employee Misclassification Law Becomes Effective Dec. 31

The North Carolina Industrial Commission has notified stakeholders of a new employee misclassification statute that goes into effect Dec. 31. The notice is in response to N.C. Gen. Stat. § 143-764(a)(5), which established the Employee Classification Section under the commission to crack down on misclassification — the intentional misclassification of an employee as an independent contractor to avoid tax liabilities and workers’ compensation coverage. The Employee Classification Section statute stems from Senate Bill 407, which Gov. Roy Cooper signed on Aug. 11...