Nebraska Employee Classification Act Effective July 15
July 8, 2010 - The Nebraska Employee
Classification Act goes into effect July 15 and employers
will be required to properly classify workers as employees or
independent contractors. The Act defines an
independent contractor as an individual who is
registered under the Contractor Registration Act and is assigned a
combined tax rate or is exempt from unemployment insurance
coverage.
Employers who violate the new law will be subject to fines of
$500 per misclassified employee for the first offense and $5,000
per misclassified employee for subsequent offenses.
The new law also provides that public construction contractors
must also submit an affidavit attesting that each employee has
completed an I-9 form and is properly classified and that the
contractor has complied with E-Verify regulations. The
Nebraska Department of Labor must also establish
and operate a hotline and website to collect reports of suspected
misclassifications.
The Nebraska Minimum Wage labor law poster may
be affected due to this new law.