Misclassification of employees as independent contractors; Department of Taxation to investigate. (HB1407)

Introduced By

Del. Jeion Ward (D-Hampton) with support from co-patron Del. Karrie Delaney (D-Centreville)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


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. Read the Bill »


Bill Has Passed


01/08/2020Prefiled and ordered printed; offered 01/08/20 20105144D
01/08/2020Referred to Committee on Finance
01/19/2020Impact statement from TAX (HB1407)
01/23/2020Assigned Finance sub: Subcommittee #3
01/24/2020House committee, floor amendments and substitutes offered
01/24/2020Subcommittee recommends reporting with amendment (7-Y 1-N)
01/29/2020Reported from Finance with amendment (16-Y 5-N)
01/29/2020Reported from Finance with amendments (16-Y 5-N) (see vote tally)
01/31/2020Read first time
02/03/2020Read second time
02/03/2020Committee amendments agreed to
02/03/2020Engrossed by House as amended HB1407E
02/03/2020Printed as engrossed 20105144D-E
02/04/2020Read third time and passed House (55-Y 43-N)
02/04/2020VOTE: Passage (55-Y 43-N) (see vote tally)
02/05/2020Constitutional reading dispensed
02/05/2020Referred to Committee on Finance and Appropriations
02/11/2020Impact statement from TAX (HB1407E)
02/18/2020Reported from Finance and Appropriations with amendment (11-Y 3-N) (see vote tally)
02/19/2020Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/20/2020Read third time
02/20/2020Reading of amendment waived
02/20/2020Committee amendment agreed to
02/20/2020Engrossed by Senate as amended
02/20/2020Passed Senate with amendment (21-Y 19-N) (see vote tally)
02/24/2020Placed on Calendar
02/24/2020Senate amendment agreed to by House (56-Y 43-N)
02/24/2020VOTE: Adoption (56-Y 43-N) (see vote tally)
02/28/2020Bill text as passed House and Senate (HB1407ER)
02/28/2020Signed by Speaker
03/02/2020Signed by President
03/06/2020Impact statement from TAX (HB1407ER)
03/11/2020Enrolled Bill communicated to Governor on March 11, 2020
03/11/2020G Governor's Action Deadline 11:59 p.m., April 11, 2020
04/06/2020G Approved by Governor-Chapter 681 (effective 1/1/21)
04/06/2020G Acts of Assembly Chapter text (CHAP0681)


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 6 minutes.