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featured image Senate Bill in Effect

Attention Nevada Business Owners: New Employee Classification Law In Effect

Senate Bill 493 went into effect this month. This new law could directly affect Nevada business owners. Independent contractor classification becomes more strictly defined and the Labor Commissioner is required to report misclassification to other agencies. This can result in multiple fines from many agencies with significant costs.

Be absolutely sure that an independent contractor is properly classified and not just paid “1099” status for the employer or employee’s convenience. See the details below and consult with experts at HRinDemand to understand how this law could affect your business.

 Effective July 1, 2019 

• Prohibits requiring a person to be classified as an independent contractor (“IC”) or form a business entity in order to classify the person as an IC 

• Labor Commissioner, after a hearing, may impose the following penalties: – First Offense (not willful): written warning – First Offense (willful): $2,500 – Second or subsequent offense: $5,000  

• Employer liable for lost wages, benefits and other economic damages to make the person whole • Establishes a Task Force to evaluate employee misclassification and suggest further legislation regarding employee misclassification  

inline iconMelissa Marsh, HR Consultant and Founder of HRinDemand, is a proven HR professional with over 15 years experience in the field who works with businesses to streamline and improve human resources processes, policies, and procedures. For assistance with employee related issues, contact HRinDemand directly at (775) 400-1322.

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