North Carolina Governor Signs Executive Order on Worker Misclassification
The North carolina General Assembly failed to negotiate this year final legislation addressing companies intentionally mislabeling workers to avoid paying taxes and other benefits. So North Carolina Gov. Pat McCrory has taken a step himself.
McCrory announced Dec. 18 he signed an executive order creating a new office within the state Industrial Commission that will have a director.
This office will receive complaints of possible employee misclassifications and expects to get help from several agencies to investigate and enforce current law discouraging the practice. The director also will work on ways to combat employee misclassification through education efforts and potential legislation.
A 2014 series by The News & Observer of Raleigh and The Charlotte Observer led to interest in the issue. The House and Senate approved competing bills but couldn’t reach a compromise.
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