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Virginia Bills Allow Tax Agency to Probe Worker Classification

Feb. 24, 2020, 11:49 PM

Virginia lawmakers want to stop employers from misclassifying as independent contractors workers who should more properly be classified as employees.

The state House of Delegates gave final approval Monday to legislation (H.B. 1407) that would give the state Department of Taxation the authority to investigate and impose penalties on companies that improperly treat their employees as contractors. The bill, which will be sent to Gov. Ralph Northam (D), would impose a fine of up to $1,000 per misclassified worker, with higher penalties for additional violations.

The actions in Virginia highlight the growing legal, tax, and financial threat to ...