NCOIL TO CONSIDER EMPLOYEE MISCLASSIFICATION WORKERS COMPENSATION COVERAGE MODEL ACT
The National Conference of Insurance Legislators (NCOIL) will consider a working draft of the Employee Misclassification Workers' Compensation Coverage Model Act, as sponsored by Rep. Charles Curtiss (TN) when it meets on July 10th at the 2009 NCOIL Summer Meeting. The model attempts to address workers' compensation issues caused by employee misclassification and independent contractor status. It presumes the employment status of an injured worker unless he/she can meet a nine-point test to be exempt from coverage requirements as an independent contractor. It also requires construction industry independent contractors with any employees to carry coverage. Much of the model is based on the Florida statute, with the exception of the independent contractor definition, which uses a Wisconsin nine-point test to establish independent contractor status. The model includes language addressing a number of the ongoing issues surrounding the definitions of "employer", "employee" and "independent contractor" that are also addressed by taxing agencies such as the IRS, Unemployment Insurance, and the Federal Labor Standards Act, and regulated by Secretaries of State and Departments of Commerce among others. If adopted by NCOIL, this model would likely begin to serve as a reference for state workers’ compensation "reform" proposals.