Classifies construction workers as employees or independent contractors and sets penalties for misclassification.

The bill amends the Texas Labor Code to establish rules for classifying construction workers as employees or independent contractors. Contractors must properly classify workers and face penalties for misclassification. The Texas Workforce Commission can impose penalties up to $100 per misclassified worker for the first violation and $1,000 per worker for subsequent violations. Penalties apply to successor business entities under certain conditions. The commission must notify governmental entities of violations and issue an annual report on compliance and enforcement.

Classifies construction workers as employees or independent contractors and sets penalties for misclassification.

The bill amends the Texas Labor Code to establish rules for classifying construction workers as employees or independent contractors. Contractors must properly classify workers and face penalties for misclassification. The Texas Workforce Commission can impose penalties up to $100 per misclassified worker for the first violation and $1,000 per worker for subsequent violations. Penalties apply to successor business entities under certain conditions. The commission must notify governmental entities of violations and issue an annual report on compliance and enforcement.