Transportation 6

On May 12, 2010, Wisconsin Governor Jim Doyle signed into law legislation concerning the misclassification of employees. Effective January 1, 2011, Senate Bill 672 requires the Department of Workforce Development ("DWD") to establish a system ensuring the proper classification of workers under unemployment insurance, worker’s compensation and labor standards laws. The Wisconsin bill is yet another example of the ever changing landscape of independent contractor/employee misclassification issues.

The DWD is charged with, among other things, educating employers, employees and the public about classification of employees and receiving and investigating complaints alleging misclassification.  The bill further permits the DWD to require an employer to provide proof of maintaining proper employee records, including wage and hour information, and sufficient worker's compensation coverage for its employees. Failing to provide the requested information may result in the DWD serving a notice on the employer of the DWD's intent to issue an order requiring the employer to stop work at the locations specified in the notice. The employer will then have three business days to provide the requested information, and failure to do so may result in the issuance of an order requiring the employer to stop work at the location. The order is appealable.