New bill imposes penalty on Kentucky construction contractors who misclassify employees

KentuckyFrom Lexology, Steven A. Brehm of Bingham Grennebaum Doll LLP writes about Kentucky legilsation that was introduced to increase the penalties on construction contractors who misclassify workers as independent contractor instead of treating them as employees.  He writes:

“The bill would create a presumption that a person who performs services for a contractor is an employee. To rebut this presumption, the contractor must show that the person:

  • Is a separate business entity;
  • Has freedom of control from the contractor;
  • Makes its services available to the general public and not just for the contractor;
  • Hires employees without contractor approval,Has a capital investment of tool and equipment used to perform the services; and
  • Is not held out to the public as an employee of the contractor.

Additional requirements for Kentucky contractors

The bill would also require that all Kentucky contractors be required to post a statement, in English, Spanish and possibly other languages, that all independent contractors are required to pay state and federal taxes and to post the rights of employees to workers’ compensation insurance, unemployment benefits, minimum wage protections, overtime pay, federal and state workplace protections and a threat against retaliation for reporting any misclassification…”

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