Nevada 2023 Regular Session Status: Enacted 4 D cosponsors

SB 145 — Revises provisions related to employee misclassification. (BDR 53-159)

Last action — Chapter 271.

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

This bill has been enacted into law. Introduced February 14, 2023. Enacted.

Signed by Governor Joe Lombardo (Republican) on June 10, 2023.

Prognosis

Advancing 58% · 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

    2 primary, 2 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (4 D).

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.

Bill Text

What changed in the latest version

313 added · 431 removed

313 line(s) added, 431 removed.

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EXEMPT (Reprinted with amendments adopted on April 17, 2023) FIRST REPRINT S.B.
Senate Bill No.
145 SENATE BILL NO .
145–Senators Lange, Donate;
145–SENATORS LANGE , DONATE ;
Daly and Ohrenschall CHAPTER..........
ALY AND O HRENSCHALL FEBRUARY 14, 2023 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions related to employee misclassification.
(BDR 53-159) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
authorizing the Labor Commissioner to use certain money to pay for additional staff for the Office of the Labor Commissioner;
authorizing the Labor Commissioner to collect investigative costs;
If the Labor Commissioner has reason to believe that a person is violating or has violated a labor law or regulation, the Labor Commissioner may take any appropriate action and, under certain circumstances, impose an Commissioner as an administrative penalty must be deposited in the State General Fund.
If the Labor Commissioner has reason to believe that a person is take any appropriate action and, under certain circumstances, impose anoner may administrative penalty against the person.
(NRS 607.160) Section 1 of this bill requires the Labor Commissioner to instead deposit all money collected as an administrative penalty or as an investigative cost into a separate account in the State General Fund.
All money collected by the Labor Commissioner as an administrative penalty must be deposited in the State General Fund.
Section 1 further authorizes the Labor Commissioner to use the money in the account to pay forExisting law:
(NRS 607.160) Section 1 of this bill requires the Labor Commissioner to deposit all money collected as an administrative penalty or as an investigative cost in the State General Fund.
(1) requires the offices of the Labor Commissioner, the Division of Industrial Relations of the Department of Business and Industry, the Employment Security Division of the Department of Employment, Training and Rehabilitation, the Department of Taxation and the Attorney General to share between their respective offices information relating to suspected employee - *SB145_R1* – 2 – misclassification which is received in the performance of their official duties and which is not otherwise declared by law to be confidential;
Existing law:
(1) requires the offices of the Labor Commissioner, the Division of Industrial Relations of the Department of Business and Industry, the Employment Security Division of the Department of Employment, Training and between their respective offices information relating to suspected employeee misclassification which is received in the performance of their official duties and which is not otherwise declared by law to be confidential;
(NRS 607.217) Section 2 of this bill instead requires these offices to communicate between their respective which is received in the performance of their official duties, regardless of whether the information is otherwise declared by law to be confidential.
(NRS 607.217) Section of this bill instead requires these offices to communicate between their respective offices information relating to suspected or actual employee misclassification the information is otherwise declared by law to be confidential.
Section 2 further provides that any such information communicated between their respective offices which is otherwise declared by law to be confidential must otherwise be maintained under the terms and conditions required by law.
Section 2 furtherer provides that any such information communicated between their respective offices which is otherwise declared by law to be confidential must otherwise be maintained under the terms and conditions required by law.
Existing law authorizes the Labor Commissioner to impose certain independent contractor or otherwise fails to properly classify an employee an including:
Existing law authorizes the Labor Commissioner to impose certain administrative penalties against an employer who misclassifies a person as an independent contractor or otherwise fails to properly classify an employee misclassifies or otherwise fails to properly classify a person as an employee, a warning;
(1) for a first offense committed by an employer who unintentionally misclassifies or otherwise fails to properly classify a person as an employee, a warning;
and (3) for a second or subsequent offense, a fine of $5,000 for each employee who was willfully misclassified.
and (3) for a second or subsequent - 82nd Session (2023) – 2 – offense, a fine of $5,000 for each employee who was willfully misclassified.
(NRS committed by an employer who misclassifies or otherwise fails to properly classify a person as an employee, a warning;
(NRS 608.400) Section 3 of this bill provides instead that:
and (2) for a second or subsequent offense, a fine of $5,000 for each employee who was misclassified.
(1) for the first offense committed by an employer who misclassifies or otherwise fails to properly classify fine of $5,000 for each employee who was willfully misclassified.quent offense, a Existing law creates the Task Force on Employee Misclassification, consisting of certain persons appointed by the Governor.
Existing law creates the Task Force on Employee Misclassification, consisting of certain persons appointed by the Governor.
(2) evaluating any existing fines, penalties or other disciplinary action relating to employee misclassification;
(2) evaluating any existing fines, penalties or other recommendations to reduce the occurrence of employee misclassification;
(3) developing certain submitting an annual report to the Legislative Commission that includes a summary of the Task Force’s work and recommendations.
and (4)ain submitting an annual report to the Legislative Commission that includes a summary of the Task Force’s work and recommendations.
Section 2 makes a conforming change to reorganize the definition of “employee misclassification” into NRS 607.217, which is the only section to which that definition applies after the elimination of the provisions in the Nevada Revised Statutes relating to the Task Force.
Section 2 makes a conforming change to reorganize the definition of “employee definition applies after the elimination of the provisions in the Nevada Revised Statutes relating to the Task Force.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
- *SB145_R1* – 3 – (b) May adopt regulations to carry out the provisions of paragraph (a).
(b) May adopt regulations to carry out the provisions of paragraph (a).
In determining the amount of any administrative penalty to be imposed against a person who violates a labor law or regulation, the Labor Commissioner shall consider the person’s previous record of compliance with the labor laws and regulations and the severity of the violation.
In determining the amount of any administrative penalty to be imposed against a person who violates a labor law or regulation, the Labor Commissioner shall consider the person’s previous record - 82nd Session (2023) – 3 – of compliance with the labor laws and regulations and the severity of the violation.
All money collected by the Labor Commissioner as an administrative penalty or as an investigative cost must be deposited in a separate account in the State General Fund.
All money collected by the Labor Commissioner as an administrative penalty or as an investigative cost must be deposited in 6.
The Labor Commissioner may use the money in the account to pay for additional staff for the Office of the Labor Commissioner.
6.
Shall] shall communicate between their respective offices information relating to suspected or actual employee - *SB145_R1* – 4 – misclassification which is received in the performance of their official duties [and which] , regardless of whether the information is [not] otherwise declared by law to be confidential.
Shall] shall communicate between their respective offices misclassification which is received in the performance of theiryee official duties [and which] , regardless of whether the information is [not] otherwise declared by law to be confidential.
As used in this section, unless the context otherwise requires, “employee misclassification” means the practice by an employer of improperly classifying employees as independent contractors to avoid any legal obligation under state labor, employment and tax laws, including, without limitation, the laws governing minimum wage, overtime, unemployment insurance, workers’ compensation insurance, temporary disability insurance, the payment of wages and payroll taxes.
As used in this section, unless the context otherwise requires, “employee misclassification” means the practice by an employer of improperly classifying employees as independent contractors to avoid any legal obligation under state labor, employment and tax laws, including, without limitation, the laws - 82nd Session (2023) – 4 – governing minimum wage, overtime, unemployment insurance, workers’ compensation insurance, temporary disability insurance, the payment of wages and payroll taxes.
608.400 1.
An employer shall not:
(c)] For a second or subsequent offense, a fine of $5,000 for each employee who was [willfully] misclassified imposed by the Labor Commissioner.
each employee who was willfully misclassified imposed by the for Labor Commissioner.
Show all 119 changed rows (79 more)
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- *SB145_R1* – 5 – 3.
3.
Sec.
- 82nd Session (2023) – 5 – 360.255 1.NRS 3Except as otherwise provided in this section and NRS 239.0115 , [and] 360.250 [,] and 607.217, the records and files of the Department concerning the administration or collection of any tax, fee, assessment or other amount required by law to be collected or the imposition of disciplinary action are confidential and privileged.
4.
NRS 360.255 is hereby amended to read as follows:
360.255 1.
Except as otherwise provided in this section and NRS 239.0115 , [and] 360.250 [,] and 607.217, the records and files of the Department concerning the administration or collection of any tax, fee, assessment or other amount required by law to be collected or the imposition of disciplinary action are confidential and privileged.
The records and files of the Department concerning the administration and collection of any tax, fee, assessment or other amount required by law to be collected or the imposition of disciplinary action are not confidential and privileged in the following cases:
The records and files of the Department concerning the amount required by law to be collected or the imposition ofr other disciplinary action are not confidential and privileged in the following cases:
- *SB145_R1* – 6 – (d) Exchanges of information with the Internal Revenue Service in accordance with compacts made and provided for in such cases, or disclosure to any federal agency, state or local law enforcement agency, including, without limitation, the Cannabis Compliance Board, or local regulatory agency that requests the information for the use of the agency in a federal, state or local prosecution or criminal, civil or regulatory investigation.
in accordance with compacts made and provided for in such cases,e or disclosure to any federal agency, state or local law enforcement agency, including, without limitation, the Cannabis Compliance Board, or local regulatory agency that requests the information for the use of the agency in a federal, state or local prosecution or criminal, civil or regulatory investigation.
(2) The Budget Division of the Office of Finance for use in the projection of revenue;
- 82nd Session (2023) – 6 – the projection of revenue;ion of the Office of Finance for use in (3) Any person authorized to audit the accounts of the Department in pursuance of an audit;
(3) Any person authorized to audit the accounts of the Department in pursuance of an audit;
The request must set forth the social security number of the taxpayer or licensee about which the request is made and contain a statement signed by the proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government.
The request about which the request is made and contain a statement signed bynsee the proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government.
(i) Disclosure of relevant information as evidence in an appeal by the taxpayer from a determination of tax due if the Nevada Tax - *SB145_R1* – 7 – Commission has determined the information is not proprietary or confidential in a hearing conducted pursuant to NRS 360.247.
(i) Disclosure of relevant information as evidence in an appeal Commission has determined the information is not proprietary orax confidential in a hearing conducted pursuant to NRS 360.247.
(k) Disclosure of the identity of a licensee against whom disciplinary action has been taken and the type of disciplinary action imposed against the licensee at any time after a determination, decision or order of the Executive Director or other officer of the Department imposing upon the licensee disciplinary action becomes final or is affirmed by the Nevada Tax Commission.
- 82nd Session (2023) – 7 – disciplinary action has been taken and the type of disciplinary action imposed against the licensee at any time after a determination, decision or order of the Executive Director or other officer of the Department imposing upon the licensee disciplinary action becomes final or is affirmed by the Nevada Tax Commission.
(1) The identity of an applicant, including, without limitation, any owner, officer or board member of an applicant;
(1) The identity of an applicant, including, without limita(2) The contents of any tool used by the Department tont;
(2) The contents of any tool used by the Department to evaluate an applicant;
evaluate an applicant;
The Executive Director shall periodically, as he or she deems appropriate, but not less often than annually, transmit to the Administrator of the Division of Industrial Relations of the Department of Business and Industry a list of the businesses of which the Executive Director has a record.
The Executive Director shall periodically, as he or she deems appropriate, but not less often than annually, transmit to the Administrator of the Division of Industrial Relations of the which the Executive Director has a record.
- *SB145_R1* – 8 – 4.
4.
If the Executive Director obtains any confidential information pursuant to such a request, he or she shall maintain the confidentiality of that information in the same manner and to the same extent as provided by law for the agency or officer from whom the information was obtained.
If the Executive Director obtains any confidential information pursuant to such a request, he or she shall - 82nd Session (2023) – 8 – maintain the confidentiality of that information in the same manner and to the same extent as provided by law for the agency or officer from whom the information was obtained.
(b) “Disciplinary action” means any suspension or revocation of a license, registration, permit or certificate issued by the Department pursuant to this title or chapter 453A or 453D of NRS, as those chapters existed on June 30, 2020, or any other disciplinary action against the holder of such a license, registration, permit or certificate.
(b) “Disciplinary action” means any suspension or revocation of pursuant to this title or chapter 453A or 453D of NRS, as thosepartment chapters existed on June 30, 2020, or any other disciplinary action against the holder of such a license, registration, permit or certificate.
- *SB145_R1* – 9 – TEXT OF REPEALED SECTIONS 607.216 “Employee misclassification” defined.
~~~~~ 23 - 82nd Session (2023)
As used in NRS 607.216 to 607.2195, inclusive, unless the context otherwise requires, “employee misclassification” means the practice by an contractors to avoid any legal obligation under state labor, employment and tax laws, including, without limitation, the laws governing minimum wage, overtime, unemployment insurance, workers’ compensation insurance, temporary disability insurance, wage payment and payroll taxes.
607.218 Task Force on Employee Misclassification:
Creation;
appointment, qualifications and terms of members;
vacancies;
meetings;
Chair and Vice Chair;
quorum;
compensation;
administrative support.
1.
The Task Force on Employee Misclassification is hereby created.
2.
The Governor shall appoint to serve on the Task Force:
(a) One person who represents an employer located in this State that employs more than 500 full-time or part-time employees.
(b) One person who represents an employer located in this State that employs 500 or fewer full-time or part-time employees.
(d) Two persons who represent organized labor in this State.e.
(e) One person who represents a trade or business association in this State.
(f) One person who represents a governmental agency that administers laws governing employee misclassification.
3.
The Governor may appoint up to two additional members to serve on the Task Force as the Governor deems appropriate.
4.
After the initial terms, the members of the Task Force serve a term of 2 years and until their respective successors are appointed.
A member may be reappointed in the same manner as the original appointments.
5.
Any vacancy occurring in the membership of the Task Force must be filled in the same manner as the original appointment not later than 30 days after the vacancy occurs.
6.
The Task Force shall meet at least twice each fiscal year and Chair.et at such additional times as deemed necessary by the - *SB145_R1* – 10 – elect from its members a Chair and a Vice Chair.
the Task Force shall 8.
A majority of the members of the Task Force constitutes a quorum for the transaction of business, and a majority of those members present at any meeting is sufficient for any official action taken by the Task Force.
9.
The Task Force shall comply with the provisions of chapter of NRS, and all meetings of the Task Force must be conducted in accordance with that chapter.
10.
Members of the Task Force serve without compensation.
11.
The Labor Commissioner shall provide the personnel, facilities, equipment and supplies required by the Task Force to carry out its duties.
607.219 Task Force on Employee Misclassification:
Duties;
annual report.
The Task Force on Employee Misclassification created by NRS 607.218 shall:
1.
Evaluate the policies and practices of the Labor of Business and Industry, Employment Security Division of theent Department of Employment, Training and Rehabilitation, Department of Taxation and Attorney General relating to employee misclassification.
2.
Evaluate any existing fines, penalties or other disciplinary action relating to employee misclassification that are authorized to be imposed by a state agency.
3.
Develop recommendations for policies, practices or proposed legislation to reduce the occurrence of employee misclassification.
4.
On or before July 1, 2020, and on or before July 1 of each subsequent year, submit a written report to the Director of the Legislative Counsel Bureau for submission to the Legislative Commission.
The report must include, without limitation, a summary of the work of the Task Force and recommendations for leg607.2195 TaskerningForceoyeeoniscEmployeeationMisclassification:
Authority to appoint subcommittee.
1.
The Task Force on Employee Misclassification created by NRS 607.218 may create a subcommittee to the Task Force for any purpose that is consistent with NRS 607.216 to 607.2195, inclusive.
2.
The Task Force shall appoint the members of the subcommittee and designate one of the members of the subcommittee as chair of the subcommittee.
The chair of the subcommittee must be a member of the Task Force.
3.
The subcommittee shall meet at the times and places specified by a call of the chair of the subcommittee.
A majority of - *SB145_R1* – 11 – quorum may exercise any power or authority conferred on the subcommittee.
H - *SB145_R1*
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Amendments

2 amendments

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Action History

  1. Chapter 271.

  2. Approved by the Governor.

  3. Enrolled and delivered to Governor.

  4. In Senate. To enrollment.

  5. Read third time. Passed. Title approved. (Yeas: 42, Nays: None.) To Senate.

  6. Taken from General File. Placed on General File for next legislative day.

  7. Taken from General File. Placed on General File for next legislative day.

  8. From committee: Do pass. Placed on Second Reading File. Read second time.

  9. From printer. To re-engrossment. Re-engrossed. Second reprint. To Assembly. In Assembly. Read first time. Referred to Committee on Commerce and Labor. To committee.

  10. From committee: Amend, and do pass as amended. Read third time. Amended. (Amend. No. 759.) Reprinting dispensed with. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 18, Nays: None, Excused: 3.) To printer.

  11. From printer. To engrossment. Engrossed. First reprint. To committee.

  12. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 95.) Taken from General File. Re-referred to Committee on Finance. Exemption effective. To printer.

  13. Notice of eligibility for exemption.

  14. From printer. To committee.

  15. Read first time. Referred to Committee on Commerce and Labor. To printer.

Sponsors

Sponsorship breakdown

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2 sponsors · 2 co-sponsors · 63 not signed on

Sponsors (2)

Co-sponsors (2)

Not signed on (63)

63 members have not signed on to this bill.

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"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.

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Frequently asked questions

Who sponsors SB 145?
SB 145 is sponsored by Lange, Roberta (Democratic), Doñate, Fabian (Democratic), Daly, Skip (Democratic), and Ohrenschall, James (Democratic).
What is the current status of SB 145?
This bill has been enacted into law. Introduced February 14, 2023. Enacted.
Where can I track SB 145?
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