North Carolina’s New Independent Contractor Law: What Employers Need to Know

Does your organization use independent contractors or plan to do so in the future? Do you plan to issue a Form 1099 to anyone at the end of the year? If you answered yes to either of these questions, the recently enacted Employee Fair Classification Act (EFCA) may impact your organization. The EFCA, which goes into effect on December 31, 2017, codifies an effort by the State of North Carolina to crack down on organizations that misclassify employees as independent contractors. Those who engage in misclassification may face fines of up to $100 per day, in addition to back taxes, penalties, and interest for up to five years. Supervisors may face personal liability. Our speakers will discuss practical tests you can apply to avoid misclassification issues in the future and steps you can take to address current misclassification issues.