Worker Classification Legislation Moves Ahead in Virginia

Virginia lawmakers are advancing legislation that would punish employers for misclassifying their workers as contractors rather than employees.

The House of Delegates approved a bill (H.B. 1407) Tuesday that would impose a fine of up to $1,000 per worker on businesses that improperly treat their employees as independent contractors. Maximum fines would be boosted to $2,500 per misclassified individual for second offenses and to $5,000 for any additional violations.

Virginia’s Senate approved its version of the measure (S.B. 744) on Jan. 27. Once differences between the bills are reconciled, the measure will be sent to Gov. ...