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Employee Fair Classification Act

On August 11, 2017, North Carolina Governor Roy Cooper signed legislation (S.B. 407) enacting the North Carolina Employee Fair Classification Act. The act provides a mechanism for the state to receive reports of employees being misclassified as independent contractors, by creating the Employee Classification Division within the North Carolina Industrial Commission. The act also:

  • Requires state licensing boards to ask applicants to disclose whether they have been subject to investigations for employee misclassification and its outcome. Failure to disclose such information will result in denial of a license or permit.
  • Establishes posting requirements.

The legislation also authorizes the commission to adopt guidelines for the use of opioids and pain management treatment for compensable workplace injuries and illnesses.

The worker classification provisions of the act are effective December 31, 2017, and the remainder of the legislation became effective on August 11, 2017.

Read NC S.B. 407