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US HR3178

US HR3178
Employee Misclassification Prevention Act


summary

Introduced
In Committee
Crossed Over
Passed
Dead

Introduced Session

112th Congress

Bill Summary

Employee Misclassification Prevention Act - Amends the Fair Labor Standards Act of 1938 (FLSA) to require every person to: (1) keep records of non-employees (contractors) who perform labor or services (except substitute work), including through an entity such as a trust, estate, partnership, association, company, or corporation, for remuneration; and (2) provide certain notice to each new employee and new non-employee, including classification as an employee or non-employee and information concerning their rights under the law. Makes it unlawful for any person to: (1) discharge or otherwise discriminate against an individual (including an employee) who has opposed any practice, or filed a complaint or instituted any proceeding related to this Act, including with respect to an individual's status as an employee or non-employee; and (2) fail to classify accurately an employee or non-employee. Doubles the amount of liquidated damages for maximum hours, minimum wage, and notice of classification violations by an employer. Subjects a person who: (1) violates such requirements (including recordkeeping requirements) to a civil penalty of up to $1,100, or (2) repeatedly or willfully violates such requirements to a civil penalty of up to $5,000 for each violation. Directs the Secretary of Labor to establish a webpage on the Department of Labor website that summarizes the rights of employees under this Act and other appropriate information. Amends the Social Security Act to require, as a condition for a federal grant for the administration of state unemployment compensation, for the state's unemployment compensation law to include a provision for: (1) auditing programs that identify employers that have not registered under the state law or that are paying unreported compensation where the effect is to exclude employees from unemployment compensation coverage, and (2) establishing administrative penalties for misclassifying employees or paying unreported unemployment compensation to employees. Requires any office, administration, or division of the Department of Labor to report any misclassification of an employee by a person subject to the FLSA that it discovers to the Department's Wage and Hour Division (WHD). Authorizes the WHD to report such information to the Internal Revenue Service (IRS).

AI Summary

This bill, the Employee Misclassification Prevention Act, aims to strengthen protections for workers by ensuring they are correctly classified as either employees or independent contractors (referred to as "non-employees" in the bill). It mandates that employers must keep detailed records of individuals performing labor or services for them, including those engaged through entities like partnerships or corporations, and provide clear written notice to each new employee and non-employee about their classification and rights. The bill makes it illegal for employers to retaliate against individuals who oppose misclassification practices or file complaints, and it prohibits the inaccurate classification of workers. To enforce these provisions, the bill doubles liquidated damages for violations related to maximum hours, minimum wage, and notice of classification, and introduces civil penalties of up to $1,100 for general violations and up to $5,000 for repeated or willful violations. Furthermore, it requires states to audit programs that identify employers not registered or paying unreported wages to ensure employees receive unemployment compensation benefits and to establish administrative penalties for misclassification. The Department of Labor will also create a webpage detailing employee rights and coordinate with other agencies to disseminate this information, and its various divisions will report any discovered misclassifications to the Wage and Hour Division (WHD), which can then share this information with the Internal Revenue Service (IRS).

Committee Categories

Education, Labor and Employment

Sponsors (33)

Last Action

Referred to the Subcommittee on Workforce Protections. (on 11/18/2011)

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