Virginia 2020 Regular Session Status: Enacted

HB 1407 — Misclassification of employees as independent contractors; Dept. of Taxation to investigate, etc.

Last action — Approved by Governor-Chapter 681 (effective 1/1/21)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House of Delegates
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 08, 2020. Enacted.

Prognosis

Likely to advance 76% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    1 primary, 3 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 7 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers' Compensation) unless it is demonstrated that such individual is an independent contractor. The Department of Taxation shall determine whether an individual is an independent contractor by applying Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.

Bill Text

What changed in the latest version

34 added · 31 removed

Plain-language change summary

The recent changes to Bill HB 1407 primarily focus on creating clearer guidelines for misclassifying employees as independent contractors. It adds new sections to the Code of Virginia that empower the Department of Taxation to investigate these cases and enforce penalties. This is important because it aims to protect workers' rights by ensuring they are properly classified and entitled to benefits, thereby enhancing job security and fairness in the workplace. Additionally, adjustments regarding procurement procedures for public schools have been streamlined, emphasizing competition and efficiency in spending taxpayer money.

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Code of Virginia Administrative Code Bills & Resolutions Summaries OTHER SESSIONS   - - - - - - - - - - - - - - Session Special Session I Session Special Session I Session Special Session I Session Special Session I Special Session II Session Session Session Special Session I Session Special Session I Session Special Session I Session Special Session I Session Special Session I Session Session Special Session I Session Special Session I Special Session II Session Session Special Session I Session Session Special Session I Special Session II Session Session Session Special Session I Session Session Session Special Session I Session Session Session Session Special Session I Special Session II VIRGINIA LAW PORTALCode of VirginiaVirginia Administrative Code Constitution of VirginiaChartersAuthoritiesCompacts Uncodified ActsRIS Users (account required) SEARCHABLE DATABASESBills & Resolutionssession legislationBill Summariessession summaries Reports to the General AssemblyHouse and Senate documents Legislative LiaisonsState agency contactsACROSS SESSIONS Subject Index:
SESSION history | hilite | pdf | print version VIRGINIA ACTS OF ASSEMBLY -- CHAPTER An Act to amend and reenact §§ 2.2-4321, 2.2-4343, 58.1-1821, and 58.1-1825 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 58.1-3.4 and by adding in Title 58.1 a chapter numbered 19, consisting of sections numbered 58.1-1900 through 58.1-1905, relating to misclassification of employees as independent contractors;
SESSION history | hilite | pdf | print version CHAPTER 681 An Act to amend and reenact §§ 2.2-4321, 2.2-4343, 58.1-1821, and 58.1-1825 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 58.1-3.4 and by adding in Title 58.1 a chapter numbered 19, consisting of sections numbered 58.1-1900 through 58.1-1905, relating to misclassification of employees as independent contractors;
[H 1407] Approved   Be it enacted by the General Assembly of Virginia:
[H 1407] Approved April 6, 2020   Be it enacted by the General Assembly of Virginia:
The venue for such proceeding shall be as specified in subdivision b of § 8.01-261.
The venue for such proceeding shall be as specified in subdivision 13 b of § 8.01-261.
View plain text versions (4)

Action History

  1. Approved by Governor-Chapter 681 (effective 1/1/21)

  2. Governor's Action Deadline 11:59 p.m., April 11, 2020

  3. Enrolled Bill communicated to Governor on March 11, 2020

  4. Impact statement from TAX (HB1407ER)

  5. Signed by President

  6. Signed by Speaker

  7. Enrolled

  8. VOTE: Adoption (56-Y 43-N)

  9. Senate amendment agreed to by House (56-Y 43-N)

  10. Placed on Calendar

  11. Passed Senate with amendment (21-Y 19-N)

  12. Engrossed by Senate as amended

  13. Committee amendment agreed to

  14. Reading of amendment waived

  15. Read third time

  16. Constitutional reading dispensed (39-Y 0-N)

  17. Reported from Finance and Appropriations with amendment (11-Y 3-N)

  18. Impact statement from TAX (HB1407E)

  19. Referred to Committee on Finance and Appropriations

  20. Constitutional reading dispensed

  21. VOTE: Passage (55-Y 43-N)

  22. Read third time and passed House (55-Y 43-N)

  23. Printed as engrossed 20105144D-E

  24. Engrossed by House as amended HB1407E

  25. Committee amendments agreed to

  26. Read second time

  27. Read first time

  28. Reported from Finance with amendments (16-Y 5-N)

  29. Subcommittee recommends reporting with amendment (7-Y 1-N)

  30. House committee, floor amendments and substitutes offered

  31. Assigned Finance sub: Subcommittee #3

  32. Impact statement from TAX (HB1407)

  33. Referred to Committee on Finance

  34. Prefiled and ordered printed; offered 01/08/20 20105144D

Sponsors

Sponsorship breakdown

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1 sponsors · 3 co-sponsors · 144 not signed on · 61 voted No

Sponsors (1)

Not signed on (144)

144 members have not signed on to this bill.

Show all 144 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

VOTE: Adoption (56-Y 43-N)

Passed 55 Yea · 43 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 554301
Total 554301
% of votes cast 56%43%0%1%
How each member voted (99)
Member Party Vote
Brewer, Emily M. — Not Voting
Collins, Christopher E. — Nay
Lindsey, Joseph C. — Yea
Adams, Dawn M. — Yea
Adams, Les R. — Nay
Aird, Lashrecse D. — Yea
Alfonso H. Lopez — Yea
Askew, Alex Q. — Yea
Avoli, G. "John" — Nay
Ayala, Hala S. — Yea
Batten, Amanda E. — Nay
Bell, Robert B. — Nay
Betsy B. Carr — Yea
Bourne, Jeffrey M. — Yea
Bulova, David L. — Yea
Byron, Kathy J. — Nay
C.E. Cliff Hayes, Jr. — Yea
Campbell, Jeffrey L. — Nay
Campbell, Ronnie R. — Nay
Carroll Foy, Jennifer D. — Yea
Carter, Lee J. — Yea
Charniele L. Herring — Yea
Chris S. Runion — Nay
Christopher T. Head — Nay
Cole, Mark L. — Nay
Convirs-Fowler, Kelly K. — Yea
Cox, M. Kirkland — Nay
Coyner, Carrie E. — Nay
Dan I. Helmer — Yea
Danica A. Roem — Yea
David A. Reid — Yea
Davis, Glenn R. — Nay
Delores L. McQuinn — Yea
Don Scott — Yea
Edmunds, James E., II — Nay
Fariss, C. Matthew — Nay
Fowler, Hyland F."Buddy," Jr. — Nay
Freitas, Nicholas J. — Nay
Gilbert, C. Todd — Nay
Gooditis, Wendy W. — Yea
Guy, Nancy D. — Yea
Guzman, Elizabeth R. — Yea
Heretick, Steve E. — Yea
Hudson, Sally L. — Yea
Hurst, Chris L. — Yea
Israel D. O'Quinn — Nay
James A. "Jay" Leftwich — Nay
James W. Morefield — Nay
Jeion A. Ward — Yea
Jenkins, Clinton L. — Yea
Jones, Jerrauld C. "Jay" — Yea
Joseph P. McNamara — Nay
Joshua G. Cole — Yea
Karrie K. Delaney — Yea
Kathy K.L. Tran — Yea
Keam, Mark L. — Yea
Knight, Barry D. — Nay
Kory, Kaye — Yea
LaRock, Dave A. — Nay
Lamont Bagby — Yea
Levine, Mark H. — Yea
Luke E. Torian — Yea
M. Keith Hodges — Nay
Marcia S. "Cia" Price — Yea
Marcus B. Simon — Yea
Marshall, Daniel W., III — Yea
McGuire, John J., III — Nay
Michael J. Webert — Nay
Miyares, Jason S. — Nay
Mugler, Martha M. — Yea
Mullin, Michael P. — Yea
Murphy, Kathleen — Yea
Orrock, Robert D., Sr. — Nay
Patrick A. Hope — Yea
Paul E. Krizek — Yea
Plum, Kenneth R. — Yea
Poindexter, Charles D. — Nay
R. Lee Ware — Nay
Ransone, Margaret B. — Nay
Richard C. "Rip" Sullivan, Jr. — Yea
Robert S. Bloxom, Jr. — Nay
Robinson, Roxann L. — Nay
Rodney T. Willett — Yea
Rush, Nick — Nay
Sam Rasoul — Yea
Samirah, Ibraheem S. — Yea
Schuyler T. VanValkenburg — Yea
Scott A. Wyatt — Nay
Shelly A. Simonds — Yea
Sickles, Mark D. — Yea
Subramanyam, Suhas — Yea
Terry G. Kilgore — Nay
Terry L. Austin — Nay
Thomas C. Wright, Jr. — Nay
Tony O. Wilt — Nay
Tyler, Roslyn C. — Yea
Vivian E. Watts — Yea
Wampler, William C., III — Nay
Wendell S. Walker — Nay

Official roll call →

Passed 21 Yea · 19 Nay
Party YeaNayPresentNot Voting
Unaffiliated 211900
Total 211900
% of votes cast 53%48%0%0%
How each member voted (40)
Member Party Vote
Chafin, A. Benton "Ben" — Nay
McClellan, Jennifer L. — Yea
Morrissey, Joseph D. — Yea
Spruill, Lionell, Sr. — Yea
Barbara A. Favola — Yea
Barker, George L. — Yea
Bell, John J. — Yea
Bill DeSteph — Nay
Bryce E. Reeves — Nay
Chase, Amanda F. — Nay
Cosgrove, John A., Jr. — Nay
David R. Suetterlein — Nay
David W. Marsden — Yea
Dunnavant, Siobhan S. — Nay
Ebbin, Adam P. — Yea
Edwards, John S. — Yea
Hanger, Emmett W., Jr. — Nay
Hashmi, Ghazala F. — Yea
Howell, Janet D. — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
Kiggans, Jennifer A. — Nay
L. Louise Lucas — Yea
Lewis, Lynwood W., Jr. — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Nay
Mark J. Peake — Nay
Mason, T. Montgomery "Monty" — Yea
Newman, Stephen D. — Nay
Norment, Thomas K., Jr. — Nay
Petersen, J. Chapman — Yea
R. Creigh Deeds — Yea
Richard H. Stuart — Nay
Ruff, Frank M., Jr. — Nay
Ryan T. McDougle — Nay
Saslaw, Richard L. — Yea
Scott A. Surovell — Yea
Todd E. Pillion — Nay
Vogel, Jill Holtzman — Nay
William M. Stanley, Jr. — Nay

Official roll call →

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 39001
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Chafin, A. Benton "Ben" — Yea
McClellan, Jennifer L. — Yea
Morrissey, Joseph D. — Yea
Spruill, Lionell, Sr. — Yea
Barbara A. Favola — Yea
Barker, George L. — Yea
Bell, John J. — Yea
Bill DeSteph — Yea
Bryce E. Reeves — Yea
Chase, Amanda F. — Yea
Cosgrove, John A., Jr. — Yea
David R. Suetterlein — Yea
David W. Marsden — Yea
Dunnavant, Siobhan S. — Yea
Ebbin, Adam P. — Yea
Edwards, John S. — Yea
Hanger, Emmett W., Jr. — Yea
Hashmi, Ghazala F. — Yea
Howell, Janet D. — Yea
Jennifer B. Boysko — Yea
Jeremy S. McPike — Yea
Kiggans, Jennifer A. — Yea
L. Louise Lucas — Yea
Lewis, Lynwood W., Jr. — Yea
Mamie E. Locke — Yea
Mark D. Obenshain — Yea
Mark J. Peake — Yea
Mason, T. Montgomery "Monty" — Yea
Newman, Stephen D. — Yea
Norment, Thomas K., Jr. — Yea
Petersen, J. Chapman — Not Voting
R. Creigh Deeds — Yea
Richard H. Stuart — Yea
Ruff, Frank M., Jr. — Yea
Ryan T. McDougle — Yea
Saslaw, Richard L. — Yea
Scott A. Surovell — Yea
Todd E. Pillion — Yea
Vogel, Jill Holtzman — Yea
William M. Stanley, Jr. — Yea

Official roll call →

Passed 11 Yea · 3 Nay
Party YeaNayPresentNot Voting
Unaffiliated 11300
Total 11300
% of votes cast 79%21%0%0%
How each member voted (14)
Member Party Vote
McClellan, Jennifer L. — Yea
Barker, George L. — Yea
David W. Marsden — Yea
Ebbin, Adam P. — Yea
Edwards, John S. — Yea
Hanger, Emmett W., Jr. — Nay
Howell, Janet D. — Yea
L. Louise Lucas — Yea
Mamie E. Locke — Yea
Newman, Stephen D. — Nay
Norment, Thomas K., Jr. — Nay
R. Creigh Deeds — Yea
Ruff, Frank M., Jr. — Yea
Saslaw, Richard L. — Yea

Official roll call →

VOTE: Passage (55-Y 43-N)

Passed 54 Yea · 43 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 544302
Total 544302
% of votes cast 55%43%0%2%
How each member voted (99)
Member Party Vote
Brewer, Emily M. — Nay
Collins, Christopher E. — Nay
Lindsey, Joseph C. — Yea
Adams, Dawn M. — Yea
Adams, Les R. — Nay
Aird, Lashrecse D. — Yea
Alfonso H. Lopez — Yea
Askew, Alex Q. — Yea
Avoli, G. "John" — Nay
Ayala, Hala S. — Yea
Batten, Amanda E. — Nay
Bell, Robert B. — Nay
Betsy B. Carr — Yea
Bourne, Jeffrey M. — Yea
Bulova, David L. — Yea
Byron, Kathy J. — Nay
C.E. Cliff Hayes, Jr. — Yea
Campbell, Jeffrey L. — Nay
Campbell, Ronnie R. — Nay
Carroll Foy, Jennifer D. — Yea
Carter, Lee J. — Yea
Charniele L. Herring — Yea
Chris S. Runion — Nay
Christopher T. Head — Nay
Cole, Mark L. — Nay
Convirs-Fowler, Kelly K. — Yea
Cox, M. Kirkland — Nay
Coyner, Carrie E. — Nay
Dan I. Helmer — Yea
Danica A. Roem — Yea
David A. Reid — Yea
Davis, Glenn R. — Nay
Delores L. McQuinn — Yea
Don Scott — Yea
Edmunds, James E., II — Nay
Fariss, C. Matthew — Nay
Fowler, Hyland F."Buddy," Jr. — Nay
Freitas, Nicholas J. — Nay
Gilbert, C. Todd — Nay
Gooditis, Wendy W. — Yea
Guy, Nancy D. — Yea
Guzman, Elizabeth R. — Yea
Heretick, Steve E. — Yea
Hudson, Sally L. — Yea
Hurst, Chris L. — Yea
Israel D. O'Quinn — Nay
James A. "Jay" Leftwich — Nay
James W. Morefield — Nay
Jeion A. Ward — Yea
Jenkins, Clinton L. — Yea
Jones, Jerrauld C. "Jay" — Yea
Joseph P. McNamara — Nay
Joshua G. Cole — Yea
Karrie K. Delaney — Yea
Kathy K.L. Tran — Yea
Keam, Mark L. — Yea
Knight, Barry D. — Nay
Kory, Kaye — Yea
LaRock, Dave A. — Nay
Lamont Bagby — Yea
Levine, Mark H. — Yea
Luke E. Torian — Yea
M. Keith Hodges — Nay
Marcia S. "Cia" Price — Yea
Marcus B. Simon — Yea
Marshall, Daniel W., III — Nay
McGuire, John J., III — Nay
Michael J. Webert — Nay
Miyares, Jason S. — Nay
Mugler, Martha M. — Yea
Mullin, Michael P. — Yea
Murphy, Kathleen — Yea
Orrock, Robert D., Sr. — Yea
Patrick A. Hope — Yea
Paul E. Krizek — Yea
Plum, Kenneth R. — Yea
Poindexter, Charles D. — Nay
R. Lee Ware — Nay
Ransone, Margaret B. — Nay
Richard C. "Rip" Sullivan, Jr. — Yea
Robert S. Bloxom, Jr. — Nay
Robinson, Roxann L. — Nay
Rodney T. Willett — Yea
Rush, Nick — Nay
Sam Rasoul — Yea
Samirah, Ibraheem S. — Yea
Schuyler T. VanValkenburg — Yea
Scott A. Wyatt — Nay
Shelly A. Simonds — Yea
Sickles, Mark D. — Not Voting
Subramanyam, Suhas — Yea
Terry G. Kilgore — Not Voting
Terry L. Austin — Nay
Thomas C. Wright, Jr. — Nay
Tony O. Wilt — Nay
Tyler, Roslyn C. — Yea
Vivian E. Watts — Yea
Wampler, William C., III — Nay
Wendell S. Walker — Nay

Official roll call →

Passed 16 Yea · 5 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 16501
Total 16501
% of votes cast 73%23%0%5%
How each member voted (22)

Official roll call →

Subjects

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Frequently asked questions

What does HB 1407 do?
Misclassification of employees as independent contractors; Department of Taxation to investigate and enforce; civil penalties. Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party that pays the remuneration for purposes of Titles 40.1 (Labor and Employment), 58.1 (Taxation), 60.2 (Unemployment Compensation), and 65.2 (Workers' Compensation) unless it is demonstrated that such individual is an independent contractor. The Department of Taxation shall determine whether an individual is an independent contractor by applying Internal Revenue Service guidelines. Violators are subject to civil penalties and debarment from public contracts. The bill has a delayed effective date of January 1, 2021.
Who sponsors HB 1407?
HB 1407 is sponsored by Jeion A. Ward, Karrie K. Delaney, Elizabeth R. Guzman, and Levine, Mark H..
What is the current status of HB 1407?
This bill has been enacted into law. Introduced January 08, 2020. Enacted.
Where can I track HB 1407?
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