According to an article by the N&O’s Mandy Locke, North Carolina is becoming less accommodating to employers who misclassify employees as independent contractors. Prior articles demonstrated how unscrupulous contractors frequently engage in employee misclassification in order to reduce payroll and workers’ compensation costs. Injured NC workers, who are denied workers’ comp, and employers who abide by the rules and the NC taxpayers pay the price.
According to the employee misclassification article:
the North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors is cracking down on companies that illegally cut costs by treating employees as independent contractors.
The NC Housing Finance Agency has begun making developers of affordable housing projects obtain promises from subcontractors that they will abide by labor laws.
North Carolina Industrial Commission has been issuing fines against companies that go without workers’ compensation insurance for workers who should be employees.
Representative Gary Pendleton intends to introduce legislation in the General Assembly to address the issue.