§ 143-765. Occupational licensing boards and commissions; notice requirement; applicant certification and disclosure.
(a) Every State occupational licensing board or commission that is authorized to issue any license, permit, or certification shall include on every application for licensure, permit, or certification, or application for renewal of the same, the following: (1) Certification by the applicant that the applicant has read and understands the public notice statement. Senate Bill 407 Session Law 2017-203 Page 3 (2) Disclosure by the applicant of any investigations for employee misclassification and the result of the investigations for a time period determined by the occupational licensing board or commission. (b) An occupational licensing board or commission shall deny the license, permit, or certification application of any applicant who fails to comply with the certification and disclosure requirements of this section.
Required by N.C. Gen. Stat. § 143-764(a)(5), effective December 31, 2017 Any worker who is defined as an employee by N.C. Gen. Stat. §§ 95-25.2(4) (NC Department Of Labor), 143-762(a)(3) (Employee Fair Classification Act), 96- 1(b)(10) (Employment Security Act), 97-2(2) (Workers’ Compensation Act), or 105- 163.1(4) (Withholding; Estimated Income Tax for Individuals) shall be treated as an employee unless the individual is an independent contractor. Any employee who believes that the employee has been misclassified as an independent contractor by the employee’s employer may report the suspected misclassification to the Employee Classification Section within the North Carolina Industrial Commission. Employee Classification Section North Carolina Industrial Commission 1233 Mail Service Center Raleigh, NC 27699-1233 Telephone: (919) 807-2582 Fax: (919)715-0282 Email: emp.classification@ic.nc.gov
Employee misclassification is defined as avoiding tax liabilities and other obligations imposed by Chapter 95, 96, 97, 105, or 143 of the North Carolina General Statutes by misclassifying an employee as an independent contractor. [N.C. Gen. Stat. § 143-762(5)]
For Temporary/Provisional Licensees
You are not classified as Independent Contractors, and should not be doing work that is classified as “working as an independent contractor”. This is because you are told when and where to work, what tools to use or where to purchase supplies and services.
Generally, an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done.
For more information please review the information below taken directly from the IRS’s website. Here is the link to the webpage that contains the information listed below.
A worker is an employee when the business has the right to direct and control the work performed by the worker, even if that right is not exercised. Behavioral control categories are:
- Type of instructions given, such as when and where to work, what tools to use or where to purchase supplies and services. Receiving the types of instructions in these examples may indicate a worker is an employee.
- Degree of instruction, more detailed instructions may indicate that the worker is an employee. Less detailed instructions reflects less control, indicating that the worker is more likely an independent contractor.
- Evaluation systems to measure the details of how the work is done points to an employee. Evaluation systems measuring just the end result point to either an independent contractor or an employee.
- Training a worker on how to do the job — or periodic or on-going training about procedures and methods — is strong evidence that the worker is an employee. Independent contractors ordinarily use their own methods.