An Act providing for criteria for independent contractors and for powers and duties of the Department of Labor and Industry and the Secretary of Labor and Industry; and imposing penalties.

SB 586, the Workplace Misclassification Act, sets clear criteria for determining when a worker qualifies as an independent contractor (requiring written project-specific contracts, business ownership, and independence from employer control) and prohibits employers from misclassifying employees as independent contractors. This directly affects workers who might lose access to workers' compensation, unemployment benefits, and other employee protections if misclassified, as well as employers who fail to properly classify workers. Key mechanisms include criminal penalties for violations, administrative fines, stop-work orders for noncompliant employers, and a private right for workers to sue for misclassification. The bill aims to replace vague standards with enforceable rules, requiring the Department of Labor to enforce these provisions and report annually on compliance.