Starting December 31, 2017, a new, permanent Section of the North Carolina Industrial Commission will focus on employee misclassification violations and have a direct impact on NC businesses.
The North Carolina Employee Fair Classification Act created the Employee Classification Section, which will investigate and pursue complaints regarding the misclassification of NC employees as independent contractors. The new Section is responsible for taking complaints about, and facilitating the sharing of, information among state and federal entities. Additionally, for the first time, it means that NC employers are required to report their compliance in properly classifying employees with state occupational licensing boards and commissions.
An important bulletin about the Act, the new Section, and how it will impact NC employers can be found in the post, North Carolina Confronts Misclassification: What Your Organization Needs to Know About the Employee Fair Classification Act by Michael D. McKnight & J. Allen Thomas of Ogletree, Deakins, Nash, Smoak & Stewart, P.C. We recommend our readers take a look.
Coming soon: In the next edition of this blog, IGO HR Solutions will provide an Action Checklist so you can take the steps necessary to work towards compliance with the North Carolina Employee Fair Classification Act.