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 ...

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