An Act relative to encouraging the growth of small businesses

This bill creates a new legal chapter to help small businesses avoid being classified as employees under certain state laws. It defines a "bona fide" business entity as one that is properly registered, reports its income as business income on tax forms, pays its own employees correctly, and follows labor and employment rules. By meeting these criteria, a company providing services under a contract would not be treated as an employee for tax and labor purposes. The measure directly affects small business owners and their workers by offering clearer guidelines on independent contractor status.