January 16, 2013, Introduced by Senator RICHARDVILLE and referred to the Committee on Government Operations.
A bill to establish uniform criteria for determining an
employee-employer relationship for purposes of the laws of this
state; to prohibit misclassification of employees in reports
required of employers by this state; to provide sanctions; and to
create a cause of action.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"employee classification act".
Sec. 2. As used in this act, "misclassify" means to fail to
properly identify an individual as performing services in
employment in an employer-employee relationship with an employer,
as determined using the 20-factor test announced by the internal
revenue service of the United States department of treasury in
revenue ruling 87-41, 1987-1 C.B. 296. An individual from whom an
employer is required to withhold federal income tax is prima facie
considered to perform services in employment in an employment
relationship for purposes of classification as an employee.
Sec. 3. An employer or an agent of an employer shall not
misclassify an employee in a report required under the laws of this
state. If the misclassification results in a lessening or avoidance
of a legal obligation to the employee, another individual, or this
state, the employer or agent is subject to the sanctions provided
in the statute under which the misclassification occurred. In
addition to any statutory sanction, any individual may bring an
action against the employer or agent who misclassified the employee
to recover any damages the individual suffers that result from the
misclassification.