SB 407 — Employee Misclassification/IC Changes.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 S 21 SENATE BILL 407 House Committee Substitute Favorable 6/28/17 Short Title:

Employee Misclassification/ICMisclassification Changes.Reform.

Senators Wells (Primary Sponsor);

and Horner.

Rules and Operations of the Senate March 29, 2017 A BILL TO BE ENTITLED AN ACT TO ENACT THE EMPLOYEE FAIR CLASSIFICATION ACT,ACT. TO REQUIRE THE INDUSTRIAL COMMISSION TO IMPLEMENT RULES RELATED TO OPIOIDS AND PAIN MANAGEMENT, TO REMOVE THE REQUIREMENT THAT THE INDUSTRIAL COMMISSION STUDY CAUSES OF INJURY AND RECOMMEND WAYS TO PREVENT INJURIES, AND TO PROVIDE THAT WHEN AN INJURY IS CAUSED BY THE BREACH OF A RULE ADOPTED BY THE EMPLOYER, THAT RULE DOES NOT HAVE TO BE APPROVED BY THE INDUSTRIAL COMMISSION FOR THE PURPOSE OF DETERMINING WHETHER COMPENSATION FOR THE INJURY IS TO BE REDUCED UNDER G.S.

97-12.

95-25.2(4), 96-1(b)(10),96-1(10), 97-2(2), or 105-163.1(4).

*S407-v-2* General Assembly Of North Carolina Session 2017 (b) Nothing in this Article shall be construed or is intended to change the definition of "employer" or "employee" under any other provision of law.

*S407-v-1* General Assembly Of North Carolina Session 2017 (c) The Chairman may employ clerical staff, investigators, and other staff within the Section as is necessary for the Section to perform its duties under this Article.

(3) Coordinate with relevant State agencies and districtDistrict attorneys'Attorneys' offices in the prosecution of employers and individuals who fail to pay civil assessments or penalties assessed as a result of the employer's or individual's involvement in employee misclassification.

Page 2 Senate Bill 407-Second Edition General Assembly Of North Carolina Session 2017 (c) The Section may adopt rules in accordance with Article 2A of Chapter 150B of the General Statutes for the purpose of carrying out the provisions of this Article and establishing the processes and procedures to be used under this Article.

Page 2 Senate Bill 407-First Edition General Assembly Of North Carolina Session 2017 (2) Disclosure by the applicant of any investigations for employee misclassification and the result of the investigations for a time period determined by the occupational licensing board or commission.

95-25.2(4), 143-762(a)(3),143-761(2), 96-1(b)(10),96-1(10), 97-2(2), or 105-163.1(4) shall be treated as an employee unless the individual is an independent contractor.

(3) The physical location, mailing address, telephone number, and e-mail address where alleged incidents of employee misclassification occurred may be reported to the Employee Classification Section within the Industrial Commission." SECTION 4.(a)4. The Industrial Commission shall adopt rules and guidelines, consistent with G.S.

97-25.4,This foract thebecomes utilizationeffective ofOctober opioids,1, related2017. prescriptions, and pain management treatment.

Senate Bill 407-Second407-First Edition Page 3 General Assembly Of North Carolina Session 2017 SECTION 4.(b) The Industrial Commission is exempt from the fiscal note requirement of G.S.

150B-21.4 in developing and implementing the rules and guidelines for opioids, related prescriptions, and pain management treatment.

SECTION 5.

G.S.

97-81(c) is repealed.

SECTION 6.

G.S.

97-12 reads as rewritten:

"§ 97-12.

Use of intoxicant or controlled substance;

willful neglect;

willful disobedience of statutory duty, safety regulation or rule.

No compensation shall be payable if the injury or death to the employee was proximately caused by:

(1) His intoxication, provided the intoxicant was not supplied by the employer or his agent in a supervisory capacity to the employee;

or (2) His being under the influence of any controlled substance listed in the North Carolina Controlled Substances Act, G.S.

90-86, et seq., where such controlled substance was not by prescription by a practitioner;

or (3) His willful intention to injure or kill himself or another.

When the injury or death is caused by the willful failure of the employer to comply with any statutory requirement or any lawful order of the Commission, compensation shall be increased ten percent (10%).

When the injury or death is caused by the willful failure of the employee to use a safety appliance or perform a statutory duty or by the willful breach of any rule or regulationany reasonable rule or reasonable regulation adopted by the employer and approved by the Commission and brought to the knowledge of the employee prior to the injury compensation shall be reduced ten percent (10%).

The burden of proof shall be upon him who claims an exemption or forfeiture under this section.

"Intoxication" and "under the influence" shall mean that the employee shall have consumed a sufficient quantity of intoxicating beverage or controlled substance to cause the employee to lose the normal control of his or her bodily or mental faculties, or both, to such an extent that there was an appreciable impairment of either or both of these faculties at the time of the injury.

A result consistent with "intoxication" or being "under the influence" from a blood or other medical test conducted in a manner generally acceptable to the scientific community and consistent with applicable State and federal law, if any, shall create a rebuttable presumption of impairment from the use of alcohol or a controlled substance." SECTION 7.

Sections 1, 2, and 3 of this act become effective October 1, 2017.

Section 6 of this act becomes effective October 1, 2017, and applies to injuries or deaths occurring on or after that date.

The remainder of this act is effective when it becomes law.