Rep. McNally Introduces Legislation to Protect Employees Incorrect Employment Categorization

COLUMBUS — State Rep. Lauren McNally (D-Youngstown) Thursday introduced a new piece of legislation that draws clear distinctions between full time employees and independent contractors. This legislation aims to address improper categorization of employees, which can be done by employers to not give employees the benefits and protections that they deserve. This has become prevalent in the last few years with the rise of ride sharing, food delivery, and package delivery services. 

There have been multiple legal battles across the country on how these workers should be classified, and the rulings have varied. This legislation would codify the U.S. Department of Labor’s Fair Labor Standards Act “economic reality test” into the Ohio Revised Code (ORC) and change how a worker’s position should be classified in Ohio. The Department of Labor created these new rules in the beginning of 2024, replacing rules from 2021. 

“Adding this test to the ORC is one way we can make sure that employees are not being taken advantage of. We want people to be properly classified in their positions so that they can get the benefits that they deserve. I think this is an important change that Ohio can echo the federal government,” said Rep. McNally. 

This distinction becomes an issue when certain protections, like minimum wage and overtime, are given to employees and not to independent contractors. Making the line between an “employee” and an “independent contractor” clearer can only help protect workers and business owners. 

This legislation is awaiting a bill number and committee assignment.