Iowa HF348 prohibits employers from misclassifying employees as independent contractors, with civil and criminal penalties.

Iowa HF348 prohibits employers from misclassifying employees as independent contractors, which denies individuals eligibility for employment benefits. Employers face civil penalties of up to $5,000 per misclassified individual for a first offense, $7,500 for a second offense, and $10,000 for each subsequent offense. Employers also face criminal penalties for willful misclassification, which is a class “D” felony. The Department of Workforce Development enforces the law, referring violations to county attorneys and collecting penalties.

Iowa HF348 prohibits employers from misclassifying employees as independent contractors, with civil and criminal penalties.

Iowa HF348 prohibits employers from misclassifying employees as independent contractors, which denies individuals eligibility for employment benefits. Employers face civil penalties of up to $5,000 per misclassified individual for a first offense, $7,500 for a second offense, and $10,000 for each subsequent offense. Employers also face criminal penalties for willful misclassification, which is a class “D” felony. The Department of Workforce Development enforces the law, referring violations to county attorneys and collecting penalties.