Insights

Worker Misclassification Initiative


On August 8, 2019, Gov. Northam issued Executive Order No. 38. The order reauthorizes the inter-agency taskforce on worker misclassification and payroll fraud. The governor’s office believes that the misclassification of actual employees as independent contractors deprives the state of Virginia of millions of dollars in tax revenues and prevents workers from receiving protections and benefits to which they are otherwise entitled.

The order authorizes the existing taskforce to continue reporting current enforcement practices against employers and recommending procedures for more effective enforcement. Virginia employers should review their employment practices to make sure that workers are properly classified as employees or independent contractors. Employees that are improperly classified as independent contractors could put the employer at risk for penalties under the employer mandate, as well as past liability for group health plan claims, employment taxes, and workers compensation benefits.

Executive Order No. 38 »