Industry Issues to Be Aware Of (11)

May 31, 2013 | from AdminBerenson No Comments

California: A new law is now in full effect requiring a one percent (1%) assessment on purchases of lumber products and engineered wood products for use in California, based on the selling price of the products. However, the tax does not apply to wood products that have been manufactured, assembled, processed, or produced from primary wood products—so called “secondary” wood products where there has been additional labor that adds significant value to the product. Accordingly, for most contractors who purchase their product from a manufacturer, they will not pay this tax directly to California, but they may see the cost of the tax passed onto them by the manufacturer through a higher cost. For manufacturers in California, the tax may apply to their operations and, if it does, the tax must be paid directly to California.

Nevada: A proposed bill would lead to the creation of a task force on employee misclassification.

New Jersey: A proposed bill would supplement the Contractors’ Registration Act by requiring home improvement contractors to wear a state-issued identification badge whenever the contractor is performing, engaging, or attempting to engage in the business of making or selling home improvements.

New Jersey: A proposed bill would have New Jersey participate in the Misclassification Initiative of the United States Department of Labor by entering into a Memoranda of Understanding with that department and its Wage and Hour Division. By doing so, New Jersey would join 13 other states working with the federal government to combat the illegal practice by some employers of misclassifying employees as independent contractors.

New York: A proposed bill would require that independent contractors be paid by the general contractor by the last day of the month after the month in which the work was performed.