HB1455: HB1455 Labor, Department of; review and validate employment status of 1099 tax returns filed by employers on behalf of employees; establish a commission

Some employers file IRS Form 1099 tax returns for workers, which treats them as independent contractors rather than employees. Independent contractors don't get the same protections as employees, such as unemployment insurance or minimum wage guarantees. This bill responds to that gap by creating a commission under Georgia's Department of Labor to check whether these 1099 filings are accurate. The commission would review, every year, all 1099 forms filed by employers located in Georgia on behalf of their workers. It would confirm whether a worker's classification and eligibility for that tax form are correct. If the commission finds an employer filed an invalid 1099 for a worker, meaning the worker was likely misclassified, the commission must connect that worker with whatever remedies already exist under federal law. The bill does not create new state penalties or new remedies itself; it points to existing federal options.

• Creates a new commission housed within and supported by the Georgia Department of Labor to review 1099 tax filings.
• Requires the commission to conduct an annual review of every IRS Form 1099 filed by employers located in Georgia on behalf of employees.
• Directs the commission to validate 1099 filings that accurately report a worker's employment status and eligibility for that tax form.
• Requires the commission to connect workers with remedies available under federal law if it finds an employer filed an invalid 1099 on their behalf.
• Repeals any existing Georgia laws that conflict with this new review process.

Georgia employers who file 1099 tax forms for workers, workers whose employment status is classified through 1099 filings, and the Department of Labor, which must staff and support the new review commission.

Workers wrongly classified as independent contractors on 1099 forms can miss out on protections tied to employee status, such as unemployment benefits. This bill sets up a state-run check on those filings and a pathway to federal remedies for workers found to be misclassified, though it does not add new state penalties.

• Section 1 adds a new Code section (O.C.G.A. § 34-2-17) directing the Commissioner of Labor to establish the review commission, working with the Department of Labor.
• Subsection (a) requires an annual review of all 1099 tax returns filed by employers located in Georgia on behalf of employees.
• Subsection (b) requires the commission to validate any 1099 return that correctly reports a worker's employment status and eligibility.
• Subsection (c) requires the commission to provide employees with remedies available under federal law if an employer's 1099 filing is found invalid.
• Section 2 repeals any conflicting state laws.

1. 2026-03-03House Second Readers (House)
2. 2026-02-26House First Readers (House)
3. 2026-02-25House Hopper (House)

• Dar'shun Kendrick (D, HD-095)Primary sponsor
• Dewey McClain (D, HD-109)
• Lisa Campbell (D, HD-035)
• Kim Schofield (D, HD-063)
• Samuel Park (D, HD-107)
• Mary Ann Santos (D, HD-117)

• worker classification
• 1099 employees
• Department of Labor
• employment law
• independent contractors