Indiana 2025 Regular Session

Indiana House Bill HB1181 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1181
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-16-13-12.5; IC 22-2; IC 22-5-3-3.
7	7	Synopsis: Worker classification on public projects. Requires a
8	8	contractor in any contractor tier except for tier 1 (a general or prime
9	9	contractor) on a: (1) public works project; or (2) tax advantaged
10	10	construction project; to complete a weekly report of wages and hours
11	11	of the contractor's employees who work on the project. Requires the
12	12	department of labor to employ an investigator to investigate complaints
13	13	of employee misclassification. Provides that the investigator shall be
14	14	located at the Marion County prosecuting attorney's office. Extends
15	15	certain protections to an employee who reports, complains, or testifies
16	16	about employee misclassification.
17	17	Effective: July 1, 2025.
18	18	Moseley
19	19	January 8, 2025, read first time and referred to Committee on Employment, Labor and
20	20	Pensions.
21	21	2025 IN 1181—LS 6543/DI 137 Introduced
22	22	First Regular Session of the 124th General Assembly (2025)
23	23	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
24	24	Constitution) is being amended, the text of the existing provision will appear in this style type,
25	25	additions will appear in this style type, and deletions will appear in this style type.
26	26	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
27	27	provision adopted), the text of the new provision will appear in this style type. Also, the
28	28	word NEW will appear in that style type in the introductory clause of each SECTION that adds
29	29	a new provision to the Indiana Code or the Indiana Constitution.
30	30	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
31	31	between statutes enacted by the 2024 Regular Session of the General Assembly.
32	32	HOUSE BILL No. 1181
33	33	A BILL FOR AN ACT to amend the Indiana Code concerning labor
34	34	and safety.
35	35	Be it enacted by the General Assembly of the State of Indiana:
36	36	1 SECTION 1. IC 5-16-13-12.5 IS ADDED TO THE INDIANA
37	37	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
38	38	3 [EFFECTIVE JULY 1, 2025]: Sec. 12.5. (a) This section applies to a
39	39	4 contractor in a contractor tier on a public works project, not
40	40	5 including a tier 1 contractor.
41	41	6 (b) This section applies only to a public works contract entered
42	42	7 into after June 30, 2025.
43	43	8 (c) As used in this section, "department" refers to the
44	44	9 department of labor created by IC 22-1-1-1.
45	45	10 (d) As used in this section, "Form WH-347" refers to the weekly
46	46	11 report of wages and hours of individuals employed on construction
47	47	12 projects prescribed by the Wage and Hour Division of the United
48	48	13 States Department of Labor.
49	49	14 (e) As used in this section, "report" refers to either of the
50	50	15 following:
51	51	16 (1) Form WH-347.
52	52	17 (2) A form prescribed by the department that is the equivalent
53	53	2025 IN 1181—LS 6543/DI 137 2
54	54	1 of Form WH-347.
55	55	2 (f) Each week, a contractor shall complete and maintain in its
56	56	3 files a report.
57	57	4 (g) At the request of either of the following, a contractor shall
58	58	5 produce the report for inspection and verification:
59	59	6 (1) The public agency that has contracted for the public works
60	60	7 project.
61	61	8 (2) The department.
62	62	9 (h) The department shall prescribe a form that is the equivalent
63	63	10 of Form WH-347. The form must require that an agent of the
64	64	11 contractor completing the form certify the information on the form
65	65	12 under the penalties for perjury. The department may provide that
66	66	13 payroll records normally maintained by a contractor satisfy the
67	67	14 requirement of this section if those records contain the information
68	68	15 required under this section.
69	69	16 SECTION 2. IC 22-2-15-2.5 IS ADDED TO THE INDIANA CODE
70	70	17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
71	71	18 1, 2025]: Sec. 2.5. (a) The department shall employ an investigator
72	72	19 to conduct investigations into questions and complaints concerning
73	73	20 employee misclassification as described in this chapter. The
74	74	21 investigator has the same inspection and enforcement powers that
75	75	22 the department has in enforcing the labor laws of Indiana, and
76	76	23 shall report to the department concerning the investigations
77	77	24 described in this section.
78	78	25 (b) The investigator's office shall be located at the office of the
79	79	26 prosecuting attorney in Marion County and shall assist prosecuting
80	80	27 attorneys with the investigation of complaints described in
81	81	28 subsection (a).
82	82	29 (c) The department and the office of the prosecuting attorney in
83	83	30 Marion County shall coordinate in the implementation of this
84	84	31 section.
85	85	32 (d) The investigator shall keep any information obtained during
86	86	33 the course of an investigation under this section confidential, if
87	87	34 required under Indiana law.
88	88	35 (e) The department may adopt rules under IC 4-22-2 to
89	89	36 implement this section.
90	90	37 SECTION 3. IC 22-2-20 IS ADDED TO THE INDIANA CODE AS
91	91	38 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
92	92	39 1, 2025]:
93	93	40 Chapter 20. Wage Reporting on Tax Advantaged Construction
94	94	41 Projects
95	95	42 Sec. 1. This chapter applies to a tax advantaged construction
96	96	2025 IN 1181—LS 6543/DI 137 3
97	97	1 project funded in whole or in part through a tax advantage granted
98	98	2 after June 30, 2025.
99	99	3 Sec. 2. As used in this chapter, "construction" includes any of
100	100	4 the following:
101	101	5 (1) The alteration of a structure.
102	102	6 (2) The building of a structure.
103	103	7 (3) The reconstruction of a structure.
104	104	8 (4) The renovation of a structure.
105	105	9 (5) The expansion of a structure.
106	106	10 (6) The demolition of a structure.
107	107	11 (7) The improvement of a structure.
108	108	12 (8) The repair of a structure.
109	109	13 (9) The maintenance of a structure.
110	110	14 Sec. 3. As used in this chapter, "contractor" refers generally to
111	111	15 a contractor in a contractor tier, not including a tier 1 contractor.
112	112	16 Sec. 4. As used in this chapter, "contractor tier" has the
113	113	17 meaning set forth in IC 5-16-13-4.
114	114	18 Sec. 5. As used in this chapter, "department" refers to the
115	115	19 department of labor created by IC 22-1-1-1.
116	116	20 Sec. 6. As used in this chapter, "Form WH-347" refers to the
117	117	21 weekly report of wages and hours of individuals employed on
118	118	22 construction projects prescribed by the Wage and Hour Division
119	119	23 of the United States Department of Labor.
120	120	24 Sec. 7. As used in this chapter, "political subdivision" has the
121	121	25 meaning set forth in IC 36-1-2-13.
122	122	26 Sec. 8. As used in this chapter, "public entity" refers to any of
123	123	27 the following:
124	124	28 (1) The state.
125	125	29 (2) A political subdivision.
126	126	30 (3) An instrumentality of the state or a political subdivision
127	127	31 (including a nonprofit corporation).
128	128	32 (4) A body corporate and politic established by law.
129	129	33 (5) An entity for a tax increment financing area described in
130	130	34 section 11(1) of this chapter.
131	131	35 Sec. 9. As used in this chapter, "report" refers to either of the
132	132	36 following:
133	133	37 (1) Form WH-347.
134	134	38 (2) A form prescribed by the department that is the equivalent
135	135	39 of Form WH-347.
136	136	40 Sec. 10. As used in this chapter, "tax advantage" refers to any
137	137	41 of the benefits described in section 11 of this chapter granted by a
138	138	42 public entity.
139	139	2025 IN 1181—LS 6543/DI 137 4
140	140	1 Sec. 11. As used in this chapter, "tax advantaged construction"
141	141	2 refers to the following:
142	142	3 (1) Construction in a geographic area including:
143	143	4 (A) an economic development area;
144	144	5 (B) a sports development area;
145	145	6 (C) a community revitalization area;
146	146	7 (D) a certified technology park;
147	147	8 (E) a tax increment financing district; and
148	148	9 (F) other similar areas or districts;
149	149	10 designated by a public entity as an allocation area or in which
150	150	11 tax increment property tax, adjusted gross income tax, or
151	151	12 gross retail and use tax revenue is dedicated to provide
152	152	13 improvements or to retire bonds issued to pay for
153	153	14 improvements.
154	154	15 (2) Construction for which an exemption, deduction, credit,
155	155	16 preferential rate, or other tax benefit is granted under
156	156	17 IC 6-1.1-12.1, IC 6-1.1-12.4, IC 6-1.1-12.5, IC 6-1.1-12.6, or
157	157	18 IC 6-3.1.
158	158	19 (3) Construction financed in any part with the proceeds of
159	159	20 bonds exempt from state taxation or issued by a public entity.
160	160	21 (4) Construction in an enterprise zone (IC 5-28-15).
161	161	22 (5) A rail project or project (as defined in IC 5-1.3-2-14 or
162	162	23 IC 8-5-15-1).
163	163	24 Sec. 12. Any agreement between a person and public entity
164	164	25 granting a tax advantage must provide that:
165	165	26 (1) the tax advantage is conditioned on and subject to the
166	166	27 provisions of this chapter; and
167	167	28 (2) all construction contracts at every contractor tier:
168	168	29 (A) entered into; and
169	169	30 (B) financed in whole or in part through the tax advantage;
170	170	31 must provide that the provisions and requirements of this
171	171	32 chapter are incorporated into the contract.
172	172	33 Sec. 13. Each week, a contractor shall complete and maintain in
173	173	34 its files a report.
174	174	35 Sec. 14. At the request of any of the following, a contractor shall
175	175	36 produce the report for inspection and verification:
176	176	37 (1) The public entity that has:
177	177	38 (A) contracted directly for the tax advantaged
178	178	39 construction; or
179	179	40 (B) granted the tax advantage through which the tax
180	180	41 advantaged construction is financed in whole or in part.
181	181	42 (2) The department.
182	182	2025 IN 1181—LS 6543/DI 137 5
183	183	1 Sec. 15. (a) If a public entity suspects that a violation of section
184	184	2 13 of this chapter has occurred, the public entity shall require the
185	185	3 contractor to remedy the violation not later than thirty (30) days
186	186	4 after the public entity notifies the contractor of the violation. The
187	187	5 notification to the contractor must be signed by the chief executive
188	188	6 officer of the public entity and sent by a method that enables the
189	189	7 public entity to verify receipt of the notice by the contractor.
190	190	8 (b) During the thirty (30) day period described in subsection (a),
191	191	9 the contractor may continue to work on the construction project.
192	192	10 If the contractor fails to remedy the violation within the thirty (30)
193	193	11 day period, the public entity shall find the contractor not
194	194	12 responsible and determine the length of time the contractor is
195	195	13 considered not responsible by the public entity.
196	196	14 (c) In making the determination of the length of time a
197	197	15 contractor is not responsible under subsection (b), the public entity
198	198	16 shall consider the severity of the violation. The period during
199	199	17 which a contractor is considered not responsible:
200	200	18 (1) may not exceed forty-eight (48) months; and
201	201	19 (2) begins on the date of substantial completion of the
202	202	20 construction project.
203	203	21 Sec. 16. The department shall prescribe a form that is the
204	204	22 equivalent of Form WH-347. The form must require that an agent
205	205	23 of the contractor completing the form certify the information on
206	206	24 the form under the penalties for perjury. The department may
207	207	25 provide that payroll records normally maintained by a contractor
208	208	26 satisfy the requirement of this chapter if those records contain the
209	209	27 information required under this chapter.
210	210	28 SECTION 4. IC 22-5-3-3, AS AMENDED BY P.L.149-2016,
211	211	29 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
212	212	30 JULY 1, 2025]: Sec. 3. (a) An employee of a private employer that is
213	213	31 under public contract may report in writing the existence of:
214	214	32 (1) a violation of a federal law or regulation;
215	215	33 (2) a violation of a state law or rule;
216	216	34 (3) a violation of an ordinance of a political subdivision (as
217	217	35 defined in IC 36-1-2-13); or
218	218	36 (4) the misuse of public resources;
219	219	37 concerning the execution of public contract first to the private
220	220	38 employer, unless the private employer is the person whom the
221	221	39 employee believes is committing the violation or misuse of public
222	222	40 resources. In that case, the employee may report the violation or misuse
223	223	41 of public resources in writing to either the private employer or to any
224	224	42 official or agency entitled to receive a report from the state ethics
225	225	2025 IN 1181—LS 6543/DI 137 6
226	226	1 commission under IC 4-2-6-4(b)(2)(J) or IC 4-2-6-4(b)(2)(K). If a good
227	227	2 faith effort is not made to correct the problem within a reasonable time,
228	228	3 the employee may submit a written report of the incident to any person,
229	229	4 agency, or organization.
230	230	5 (b) For having made a report under subsection (a), an employee may
231	231	6 not:
232	232	7 (1) be dismissed from employment;
233	233	8 (2) have salary increases or employment related benefits
234	234	9 withheld;
235	235	10 (3) be transferred or reassigned;
236	236	11 (4) be denied a promotion that the employee otherwise would
237	237	12 have received; or
238	238	13 (5) be demoted.
239	239	14 (c) An employee of a private employer may report the existence
240	240	15 of employee misclassification by the private employer to any
241	241	16 official or agency entitled to receive a report concerning possible
242	242	17 employee misclassification.
243	243	18 (d) An employee who:
244	244	19 (1) reports the existence of employee misclassification;
245	245	20 (2) files a complaint concerning employee misclassification;
246	246	21 (3) institutes or causes to be instituted any proceeding related
247	247	22 to employee misclassification; or
248	248	23 (4) testifies or will testify in a proceeding concerning employee
249	249	24 misclassification;
250	250	25 may not be discharged or discriminated against in the manner
251	251	26 described in subsection (b).
252	252	27 (c) (e) Notwithstanding subsections (a) through (b), (d), an
253	253	28 employee must make a reasonable attempt to ascertain the correctness
254	254	29 of any information to be furnished and may be subject to disciplinary
255	255	30 actions for knowingly furnishing false information, including
256	256	31 suspension or dismissal, as determined by the employer. However, any
257	257	32 employee disciplined under this subsection is entitled to process an
258	258	33 appeal of the disciplinary action as a civil action in a court of general
259	259	34 jurisdiction.
260	260	35 (d) (f) An employer who violates this section commits a Class A
261	261	36 infraction.
262	262	2025 IN 1181—LS 6543/DI 137