Existing law requires the Labor Commissioner to enforce all labor laws of the State of Nevada. 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 administrative penalty against the person. All money collected by the Labor Commissioner as an administrative penalty must be deposited in the State General Fund. (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. 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 Rehabilitation, the Department of Taxation and the Attorney General to share between their respective offices information relating to suspected employee misclassification which is received in the performance of their official duties and which is not otherwise declared by law to be confidential; and (2) authorizes such offices to communicate information relating to employee misclassification which is received in the performance of their official duties and which is otherwise declared by law to be confidential, if the confidentiality of the information is otherwise maintained under the terms and conditions required by law. (NRS 607.217) Section 2 of this bill instead requires these offices to communicate between their respective offices information relating to suspected or actual employee misclassification which is received in the performance of their official duties, regardless of whether 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 4 of this bill makes a conforming change to require the Department of Taxation to share such information. 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 including: (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; (2) for a first offense committed by an employer who willfully fails to properly classify a person as an employee, a fine of $2,500 for the first incident of willfully misclassifying one or more persons; and (3) for a second or subsequent offense, a fine of $5,000 for each employee who was willfully misclassified. (NRS 608.400) Section 3 of this bill provides instead that: (1) for the first offense committed by an employer who misclassifies or otherwise fails to properly classify a person as an employee, a warning; and (2) for a second or subsequent offense, a fine of $5,000 for each employee who was willfully misclassified. Existing law creates the Task Force on Employee Misclassification, consisting of certain persons appointed by the Governor. The Task Force has various duties, including: (1) evaluating the policies and practices of certain state agencies relating to employee misclassification; (2) evaluating any existing fines, penalties or other disciplinary action relating to employee misclassification; (3) developing certain recommendations to reduce the occurrence of employee misclassification; and (4) submitting an annual report to the Legislative Commission that includes a summary of the Task Force's work and recommendations. (NRS 607.218, 607.219, 607.2195) Section 5 of this bill eliminates the Task Force and its duties. 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.

Statutes affected:
As Introduced: 607.160, 607.217, 608.400, 360.255
Reprint 1: 607.160, 607.217, 608.400, 360.255
Reprint 2: 607.160, 607.217, 608.400, 360.255
As Enrolled: 607.160, 607.217, 608.400, 360.255
BDR: 607.160, 607.217, 608.400, 360.255