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Latest News > Kansas Governor Announces Campaign Against Independent Contractors
Kansas Governor Announces Campaign Against Independent Contractors
August 2006
Kansas Governor Kathleen Sebelius announced on July 10, 2006, a joint effort by the Kansas Department of Revenue and the Kansas Department of Labor to pursue companies that operate with independent contractors, with the goal of seeking a reclassification of the contractors to employee status for purposes of Kansas state law. As a prelude to the intensified enforcement efforts, the Departments are launching a joint public-education campaign to inform businesses about the perils of worker misclassification.
During her announcement, Governor Sebelius also mentioned her state’s recent enactment of HB 2772, which established a new penalty that can be imposed on companies found to have intentionally misclassified a worker as an independent contractor for purposes of state withholding or unemployment taxes, and that permits the Kansas Department of Revenue and Department of Labor to share information and collaborate on enforcement efforts aimed at suspected worker misclassification. The new law went into effect on July 1.
Based on the tenor of Governor Sebelius’s announcement, the State of Kansas should be considered a hostile jurisdiction for businesses that operate with independent contractors. The Governor’s announcement follows a recent similar announcement by New Jersey Governor Jon Corzine.
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