Introduced Version
HOUSE BILL No. 1181
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-16-13-12.5; IC 22-2; IC 22-5-3-3.
Synopsis: Worker classification on public projects. Requires a
contractor in any contractor tier except for tier 1 (a general or prime
contractor) on a: (1) public works project; or (2) tax advantaged
construction project; to complete a weekly report of wages and hours
of the contractor's employees who work on the project. Requires the
department of labor to employ an investigator to investigate complaints
of employee misclassification. Provides that the investigator shall be
located at the Marion County prosecuting attorney's office. Extends
certain protections to an employee who reports, complains, or testifies
about employee misclassification.
Effective: July 1, 2025.
Moseley
January 8, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
2025 IN 1181—LS 6543/DI 137 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1181
A BILL FOR AN ACT to amend the Indiana Code concerning labor
and safety.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-16-13-12.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2025]: Sec. 12.5. (a) This section applies to a
4 contractor in a contractor tier on a public works project, not
5 including a tier 1 contractor.
6 (b) This section applies only to a public works contract entered
7 into after June 30, 2025.
8 (c) As used in this section, "department" refers to the
9 department of labor created by IC 22-1-1-1.
10 (d) As used in this section, "Form WH-347" refers to the weekly
11 report of wages and hours of individuals employed on construction
12 projects prescribed by the Wage and Hour Division of the United
13 States Department of Labor.
14 (e) As used in this section, "report" refers to either of the
15 following:
16 (1) Form WH-347.
17 (2) A form prescribed by the department that is the equivalent
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1 of Form WH-347.
2 (f) Each week, a contractor shall complete and maintain in its
3 files a report.
4 (g) At the request of either of the following, a contractor shall
5 produce the report for inspection and verification:
6 (1) The public agency that has contracted for the public works
7 project.
8 (2) The department.
9 (h) The department shall prescribe a form that is the equivalent
10 of Form WH-347. The form must require that an agent of the
11 contractor completing the form certify the information on the form
12 under the penalties for perjury. The department may provide that
13 payroll records normally maintained by a contractor satisfy the
14 requirement of this section if those records contain the information
15 required under this section.
16 SECTION 2. IC 22-2-15-2.5 IS ADDED TO THE INDIANA CODE
17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
18 1, 2025]: Sec. 2.5. (a) The department shall employ an investigator
19 to conduct investigations into questions and complaints concerning
20 employee misclassification as described in this chapter. The
21 investigator has the same inspection and enforcement powers that
22 the department has in enforcing the labor laws of Indiana, and
23 shall report to the department concerning the investigations
24 described in this section.
25 (b) The investigator's office shall be located at the office of the
26 prosecuting attorney in Marion County and shall assist prosecuting
27 attorneys with the investigation of complaints described in
28 subsection (a).
29 (c) The department and the office of the prosecuting attorney in
30 Marion County shall coordinate in the implementation of this
31 section.
32 (d) The investigator shall keep any information obtained during
33 the course of an investigation under this section confidential, if
34 required under Indiana law.
35 (e) The department may adopt rules under IC 4-22-2 to
36 implement this section.
37 SECTION 3. IC 22-2-20 IS ADDED TO THE INDIANA CODE AS
38 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
39 1, 2025]:
40 Chapter 20. Wage Reporting on Tax Advantaged Construction
41 Projects
42 Sec. 1. This chapter applies to a tax advantaged construction
2025 IN 1181—LS 6543/DI 137 3
1 project funded in whole or in part through a tax advantage granted
2 after June 30, 2025.
3 Sec. 2. As used in this chapter, "construction" includes any of
4 the following:
5 (1) The alteration of a structure.
6 (2) The building of a structure.
7 (3) The reconstruction of a structure.
8 (4) The renovation of a structure.
9 (5) The expansion of a structure.
10 (6) The demolition of a structure.
11 (7) The improvement of a structure.
12 (8) The repair of a structure.
13 (9) The maintenance of a structure.
14 Sec. 3. As used in this chapter, "contractor" refers generally to
15 a contractor in a contractor tier, not including a tier 1 contractor.
16 Sec. 4. As used in this chapter, "contractor tier" has the
17 meaning set forth in IC 5-16-13-4.
18 Sec. 5. As used in this chapter, "department" refers to the
19 department of labor created by IC 22-1-1-1.
20 Sec. 6. As used in this chapter, "Form WH-347" refers to the
21 weekly report of wages and hours of individuals employed on
22 construction projects prescribed by the Wage and Hour Division
23 of the United States Department of Labor.
24 Sec. 7. As used in this chapter, "political subdivision" has the
25 meaning set forth in IC 36-1-2-13.
26 Sec. 8. As used in this chapter, "public entity" refers to any of
27 the following:
28 (1) The state.
29 (2) A political subdivision.
30 (3) An instrumentality of the state or a political subdivision
31 (including a nonprofit corporation).
32 (4) A body corporate and politic established by law.
33 (5) An entity for a tax increment financing area described in
34 section 11(1) of this chapter.
35 Sec. 9. As used in this chapter, "report" refers to either of the
36 following:
37 (1) Form WH-347.
38 (2) A form prescribed by the department that is the equivalent
39 of Form WH-347.
40 Sec. 10. As used in this chapter, "tax advantage" refers to any
41 of the benefits described in section 11 of this chapter granted by a
42 public entity.
2025 IN 1181—LS 6543/DI 137 4
1 Sec. 11. As used in this chapter, "tax advantaged construction"
2 refers to the following:
3 (1) Construction in a geographic area including:
4 (A) an economic development area;
5 (B) a sports development area;
6 (C) a community revitalization area;
7 (D) a certified technology park;
8 (E) a tax increment financing district; and
9 (F) other similar areas or districts;
10 designated by a public entity as an allocation area or in which
11 tax increment property tax, adjusted gross income tax, or
12 gross retail and use tax revenue is dedicated to provide
13 improvements or to retire bonds issued to pay for
14 improvements.
15 (2) Construction for which an exemption, deduction, credit,
16 preferential rate, or other tax benefit is granted under
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
18 IC 6-3.1.
19 (3) Construction financed in any part with the proceeds of
20 bonds exempt from state taxation or issued by a public entity.
21 (4) Construction in an enterprise zone (IC 5-28-15).
22 (5) A rail project or project (as defined in IC 5-1.3-2-14 or
23 IC 8-5-15-1).
24 Sec. 12. Any agreement between a person and public entity
25 granting a tax advantage must provide that:
26 (1) the tax advantage is conditioned on and subject to the
27 provisions of this chapter; and
28 (2) all construction contracts at every contractor tier:
29 (A) entered into; and
30 (B) financed in whole or in part through the tax advantage;
31 must provide that the provisions and requirements of this
32 chapter are incorporated into the contract.
33 Sec. 13. Each week, a contractor shall complete and maintain in
34 its files a report.
35 Sec. 14. At the request of any of the following, a contractor shall
36 produce the report for inspection and verification:
37 (1) The public entity that has:
38 (A) contracted directly for the tax advantaged
39 construction; or
40 (B) granted the tax advantage through which the tax
41 advantaged construction is financed in whole or in part.
42 (2) The department.
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1 Sec. 15. (a) If a public entity suspects that a violation of section
2 13 of this chapter has occurred, the public entity shall require the
3 contractor to remedy the violation not later than thirty (30) days
4 after the public entity notifies the contractor of the violation. The
5 notification to the contractor must be signed by the chief executive
6 officer of the public entity and sent by a method that enables the
7 public entity to verify receipt of the notice by the contractor.
8 (b) During the thirty (30) day period described in subsection (a),
9 the contractor may continue to work on the construction project.
10 If the contractor fails to remedy the violation within the thirty (30)
11 day period, the public entity shall find the contractor not
12 responsible and determine the length of time the contractor is
13 considered not responsible by the public entity.
14 (c) In making the determination of the length of time a
15 contractor is not responsible under subsection (b), the public entity
16 shall consider the severity of the violation. The period during
17 which a contractor is considered not responsible:
18 (1) may not exceed forty-eight (48) months; and
19 (2) begins on the date of substantial completion of the
20 construction project.
21 Sec. 16. The department shall prescribe a form that is the
22 equivalent of Form WH-347. The form must require that an agent
23 of the contractor completing the form certify the information on
24 the form under the penalties for perjury. The department may
25 provide that payroll records normally maintained by a contractor
26 satisfy the requirement of this chapter if those records contain the
27 information required under this chapter.
28 SECTION 4. IC 22-5-3-3, AS AMENDED BY P.L.149-2016,
29 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 3. (a) An employee of a private employer that is
31 under public contract may report in writing the existence of:
32 (1) a violation of a federal law or regulation;
33 (2) a violation of a state law or rule;
34 (3) a violation of an ordinance of a political subdivision (as
35 defined in IC 36-1-2-13); or
36 (4) the misuse of public resources;
37 concerning the execution of public contract first to the private
38 employer, unless the private employer is the person whom the
39 employee believes is committing the violation or misuse of public
40 resources. In that case, the employee may report the violation or misuse
41 of public resources in writing to either the private employer or to any
42 official or agency entitled to receive a report from the state ethics
2025 IN 1181—LS 6543/DI 137 6
1 commission under IC 4-2-6-4(b)(2)(J) or IC 4-2-6-4(b)(2)(K). If a good
2 faith effort is not made to correct the problem within a reasonable time,
3 the employee may submit a written report of the incident to any person,
4 agency, or organization.
5 (b) For having made a report under subsection (a), an employee may
6 not:
7 (1) be dismissed from employment;
8 (2) have salary increases or employment related benefits
9 withheld;
10 (3) be transferred or reassigned;
11 (4) be denied a promotion that the employee otherwise would
12 have received; or
13 (5) be demoted.
14 (c) An employee of a private employer may report the existence
15 of employee misclassification by the private employer to any
16 official or agency entitled to receive a report concerning possible
17 employee misclassification.
18 (d) An employee who:
19 (1) reports the existence of employee misclassification;
20 (2) files a complaint concerning employee misclassification;
21 (3) institutes or causes to be instituted any proceeding related
22 to employee misclassification; or
23 (4) testifies or will testify in a proceeding concerning employee
24 misclassification;
25 may not be discharged or discriminated against in the manner
26 described in subsection (b).
27 (c) (e) Notwithstanding subsections (a) through (b), (d), an
28 employee must make a reasonable attempt to ascertain the correctness
29 of any information to be furnished and may be subject to disciplinary
30 actions for knowingly furnishing false information, including
31 suspension or dismissal, as determined by the employer. However, any
32 employee disciplined under this subsection is entitled to process an
33 appeal of the disciplinary action as a civil action in a court of general
34 jurisdiction.
35 (d) (f) An employer who violates this section commits a Class A
36 infraction.
2025 IN 1181—LS 6543/DI 137