SB 423 (Ohio, 136th General Assembly) — Summary
Purpose and intent
- The bill clarifies employment status for health care workers engaged via health care worker platforms and health care facilities. Specifically, it provides that health care workers booked through such platforms are not considered employees of the platform or facility for certain wage-and-hour and related provisions, under defined circumstances.
Key provisions and changes
- Overtime and wage-related provisions (several sections including 4111.03, 4111.14, 4113.15, 4121.01, 4123.01, 4141.01, 5747.01):
- Health care workers booked through a health care worker platform may be treated as independent contractors (not employees) for purposes of overtime, minimum wage, and certain wage-recordkeeping requirements, if specified conditions are met.
- The bill preserves standard overtime rules for other workers but creates a specific exemption framework for health care workers engaged via platforms, aligning with the definitions and interpretations of employment used under the Fair Labor Standards Act (FLSA) and Portal-to-Portal Act references.
Section 4113.87 (new) — Health care worker platform framework:
- Defines key terms: health care worker, health care worker platform, and health care facility.
- Establishes criteria for when a health care worker is not an employee of the platform or facility:
- Written or electronic agreement that the health care worker is an independent contractor for all work booked through the platform.
- Worker can accept or reject shifts without minimum shift requirements.
- Worker can set or agree to rates with the facility or platform.
- No penalties for accepting/rejecting shifts.
- No compulsion to be available for specific hours/days.
- No restriction on engaging in other work.
- No requirement to use specific equipment.
- Platform does not control means/methods of service delivery.
- Contract can be terminated by either party with/without cause.
- Worker responsible for taxes (federal/state/local) on earnings from platform-booked work.
- Platform does not require noncompete agreements.
- Platform does not impose fees when a worker accepts facility employment offers.
- Worker may operate on multiple platforms (with slight caveat about concurrent shifts across platforms).
- Platform maintains or verifies workers’ insurance (workers’ comp, general liability, professional liability).
- Exceptions: the above not applying if there is an existing employer-employee relationship with the facility (e.g., W-2 compensation in the prior 14 days or leave-related shifts).
Definitions and scope (Sec. 4111.03, 4111.14, 4121.01, 4123.01, 4141.01, 5747.01):
- The bill integrates the health care worker platform framework into Ohio’s wage, employment, and workers’ compensation laws, adjusting who is treated as an employee for purposes of those provisions.
- Maintains existing exemptions and conditions for other worker classifications (e.g., motor carriers, franchisors).
Effected parties and potential impact
- Health care workers using platforms to book shifts (potentially independent contractors rather than employees for wage-and-hour purposes under specified conditions).
- Health care worker platforms (employers under traditional definitions may be exempt from certain wage-and-hour obligations for workers who meet the independent contractor criteria).
- Health care facilities that engage platform-booked workers (subject to the same criteria to determine employee vs. independent contractor status).
- Employers generally under Ohio’s wage and hour and workers’ compensation regimes (with tailored exemptions for platform-mediated health care work).
Procedural and timeline aspects
- The bill as introduced amends multiple sections of the Revised Code and enacts a new section (4113.87) to codify the platform-based independent contractor framework.
- Effective date: References indicate alignment with existing federal standards; specifics on effective date would be set in the final enacted text.
Notes
- The bill uses language consistent with FLSA interpretations and Portal-to-Portal Act references.
- It provides a clear set of conditions to determine independent contractor status for health care workers on platforms, balancing flexibility for platforms with worker protections (insurance, tax obligations, ability to accept/reject shifts).
