Bill Text: TX HB2242 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the classification of workers for purposes of the Texas Unemployment Compensation Act; providing an administrative penalty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-05-09 - Placed on General State Calendar [HB2242 Detail]
Download: Texas-2019-HB2242-Introduced.html
86R11273 SMT-F | ||
By: Vo | H.B. No. 2242 |
|
||
|
||
relating to the classification of workers for purposes of the Texas | ||
Unemployment Compensation Act; providing an administrative | ||
penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 201.041, Labor Code, is amended to read | ||
as follows: | ||
Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT; | ||
PRESUMPTION OF EMPLOYMENT. (a) In this subtitle, "employment" | ||
means a service, including service in interstate commerce, | ||
performed by an individual for wages or under an express or implied | ||
contract of hire. | ||
(b) An individual performing a service for wages or under an | ||
express or implied contract of hire, other than a service described | ||
by Subchapter E, is presumed to be an employee of the person for | ||
whom the service is performed. | ||
(c) A presumption under Subsection (b) may be rebutted if | ||
the person for whom the service is performed shows[ |
||
|
||
performance of the service has been and will continue to be free | ||
from control or direction under the contract and in fact. | ||
SECTION 2. Section 203.202, Labor Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) Notwithstanding Subsection (a), money credited to the | ||
special administration fund from penalties assessed under Section | ||
214.008(c-1) shall be used only to pay costs related to | ||
identifying, investigating, and preventing worker | ||
misclassification. | ||
SECTION 3. The heading to Section 214.008, Labor Code, is | ||
amended to read as follows: | ||
Sec. 214.008. MISCLASSIFICATION OF [ |
||
PENALTY. | ||
SECTION 4. Section 214.008, Labor Code, is amended by | ||
adding Subsections (b-1), (c-1), and (c-2) to read as follows: | ||
(b-1) A person, other than a person to whom Subsection (a) | ||
or (b) applies, shall properly classify as an employee or | ||
independent contractor in accordance with Chapter 201 and pay a | ||
contribution on wages for employment as required by Section 204.002 | ||
for any individual the person directly retains and compensates for | ||
the performance of a service. | ||
(c-1) The commission may assess a penalty against a person | ||
who fails to properly classify, or pay a contribution on wages for, | ||
an individual as required by Subsection (b-1) if the commission | ||
determines that the person has previously failed to properly | ||
classify, or pay a contribution on wages for, one or more | ||
individuals as required by that subsection. | ||
(c-2) The amount of a penalty assessed under Subsection | ||
(c-1) may not exceed $200 for each individual that the person has | ||
not properly classified or for whom the person has not paid a | ||
contribution on wages for employment. The amount of the penalty | ||
must be based on: | ||
(1) the seriousness of the violation, including the | ||
nature, circumstances, extent, and gravity of any prohibited acts; | ||
(2) the history of previous violations; | ||
(3) the amount necessary to deter future violations; | ||
or | ||
(4) efforts to correct the violation. | ||
SECTION 5. Section 214.008, Labor Code, as amended by this | ||
Act, applies only to service performed by an individual on or after | ||
the effective date of this Act. Service performed by an individual | ||
before the effective date of this Act is governed by the law in | ||
effect on the date the service was performed, and the former law is | ||
continued in effect for that purpose. | ||
SECTION 6. This Act takes effect September 1, 2019. |