Bill Targets Companies That Misclassify Workers

Construction workers who intentionally misclassify their employees as independent contractors would be subject to hefty fines under proposed legislation authored by a veteran Democratic lawmaker.

House Bill 372, also known as the Workplace Fraud Prevention Act and filed by state Rep. Joe Deshotel, D-Beaumont, would levy fines of up to $5,000 on business owners for each employee not properly classified as such — a practice used often in the construction industry to avoid paying taxes, supplying fair wages or providing benefits to employees. Instead, employers may classify their workers as independent contractors to circumvent the necessary payroll requirements. The practice ...

Full Story

Comment Policy

The Texas Tribune is pleased to provide the opportunity for you to share your observations about this story. We encourage lively debate on the issues of the day, but we ask that you refrain from using profanity or other offensive speech, engaging in personal attacks or name-calling, posting advertising, or wandering away from the topic at hand. To comment, you must be a registered user of the Tribune, and your user name will be displayed. Thanks for taking time to offer your thoughts.

You must be logged in to leave a comment. Login | Sign-Up