A bill for an act prohibiting the misclassification of employees as independent contractors, providing penalties, and including applicability provisions.

Summary

The bill makes it illegal for any Iowa employer to deliberately label an employee as an independent contractor to avoid benefits. Violations trigger civil fines up to $10,000 per worker and a Class D felony charge. Enforcement would be handled by the Department of Workforce Development, which can issue penalties and refer cases to county attorneys.

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