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 ...
Comments (5)
Tim Spotswood via Texas Tribune on Facebook
This has gone on for years. I was "contractor" for an air conditioning company about 20 years ago. No benefits like sick days or vacation, but more importantly no workman's comp or unemployment, and it was a tax nightmare. A lot of the skilled trades operate like this. And it needs to be stopped.
Sergio Hernandez De Santos via Texas Tribune on Facebook
I worked for swimming pool builders for 20+ years, it's part of the race to the bottom, I agree with Tim; it's a tax nightmare and it needs to be stopped
Linda Vega via Texas Tribune on Facebook
It's a way to push out small businesses. That legislation is not about fairness and protection.
Terry Bradley via Texas Tribune on Facebook
Was a tax nightmare for me also. This should be stopped now. There is a difference between small businesses & fly by nighters.
Jim Baxa
I used to do independent contract work on the side. I didnt have any TIN, nor did I want to get to get one. If I had to get a number, I would have just turned down the side job. That would have been bad for everybody. This bill sounds good on the surface, but it will not work as written.