Bill Positions

Bill Number: HB 1590

Bill Title: Employer Misclassification of Employees as Independent Contractors

Bill Sponsor(s): Chair, Economic Matters, Requested by DLLR

Subject: Employer Relations

Committee: ECM

Bill Summary: This bill prohibits employers from misclassifying employees as independent contractors; provides specified penalties and the award of specified damages and wages for violations of the Act; authorizes an employee who has not been properly classified as an employee to bring a civil action against an employer; requires employers to retain specified records for a specified period of time.

History: None

Chamber Position: Oppose

Position Summary: This legislation defines "independent contractor" more narrowly than the prevailing common law test/IRS factor test typically used to define independent contractors vs. employees. The bill promotes more unnecessary government interference and red-tape that burdens the innocent. There are a number of state and federal laws that currently exist that address this issue. It is recommended that instead of adding unnecessary legislation, the state encourage the enforcement of existing law.

Therefore, the Maryland Chamber of Commerce opposes this bill.

Position Statement: Coming Soon

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.