Governor Pat McCrory signed an executive order today to crack down on employee misclassification practices in North Carolina. Executive Order 83 establishes the Employee Classification Section within the North Carolina Industrial Commission to streamline information sharing and facilitate enforcement actions amongst Cabinet agencies and the Council of State.
“When unethical employers improperly classify their employees as independent contractors, they not only put our state’s workforce at risk, but also put ethical businesses at a competitive disadvantage and rob taxpayers of significant revenues,” said Governor McCrory.“The Employee Classification Section will work with other state agencies to ensure that every potential violation of our state’s laws will be thoroughly investigated.”
Executive Order 83 directs the Chairman of the Industrial Commission to appoint a Director to oversee the new section’s activities. The Director will serve as the primary point of contact for reported instances of employee misclassification and will refer all reported instances to the relevant state agencies for investigation and enforcement action.
Governor McCrory has directed the Department of Revenue, the Industrial Commission, and the Division of Employment Security to each appoint a liaison who will work directly with the Director to ensure that their respective agencies are taking proper enforcement actions and sharing all necessary information. The executive order also provides an opportunity for improved coordination and collaboration between the new Employee Classification Section and the Department of Labor and Department of Insurance.
“The creation of the Employee Classification Section is a significant first step in eliminating employee misclassification throughout our state. I look forward to working with the General Assembly to build upon our recent gains,” said Governor McCrory. “I’m proud to sign this Executive Order which reaffirms our state’s commitment to protecting its workers, businesses, and taxpayers.”
View the executive order: https://governor.nc.gov/document/executive-order-no-83.
Source: Governor McCrory Signs Executive Order to Crack Down on Employee Misclassification