2020 Second Extraordinary Session ENROLLED
SENATE RESOLUTION NO. 22
BY SENATORS LUNEAU AND CARTER
A RESOLUTION
To urge and request the Department of Revenue to create a task force to study and make
recommendations for changes to state laws in an effort to provide the necessary
investigatory and enforcement tools to detect, investigate, and eliminate employee
misclassification in Louisiana.
WHEREAS, the legislature hereby finds that the misclassification of employees is
a serious problem in Louisiana that substantially reduces revenues otherwise due to state and
local government; and
WHEREAS, the misclassification of employees denies misclassified employees
important protections and benefits such as minimum wage, sick leave, and unemployment
benefits as well as reduced access to workers' compensation; and
WHEREAS, misclassification of employees creates an unfair competitive
disadvantage to Louisiana businesses that properly classify their employees and contractors;
and
WHEREAS, the legislature declares that the misclassification of employees is
contrary to the public policy of this state; and
WHEREAS, the Department of Revenue and the Louisiana Workforce Commission
have worked collaboratively to audit and recover unpaid withholding and unemployment
insurance taxes resulting from misclassification of employees; and
WHEREAS, the legislative auditor issued a performance audit in June 2019 on the
"Detection and Prevention of Worker Misclassification" and offered several legislative
recommendations pertaining to the Louisiana Workforce Commission; and
WHEREAS, the laws regulating the classification of employees and the necessary
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investigatory and enforcement tools of the administering state agencies should be carefully
reviewed to determine the necessary revisions to further equip state agencies to detect,
investigate, and eliminate employee misclassification in this state.
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby urge and request the Department of Revenue to work in collaboration with the
Louisiana Workforce Commission to create a task force to study and make recommendations
for changes to state laws in an effort to provide the necessary investigatory and enforcement
tools to detect, investigate, and minimize employee misclassification in Louisiana, hereafter
referred to as the "task force".
BE IT FURTHER RESOLVED that the task force shall be comprised of the
following:
(1) The secretary of the Department of Revenue or her designee.
(2) The assistant secretary of the Office of Legal Affairs, Department of Revenue or
his designee.
(3) The secretary of the Louisiana Workforce Commission or her designee.
(4) The assistant secretary of the Office of Unemployment Insurance Administration,
Louisiana Workforce Commission or his designee.
(5) The assistant secretary of the Office of Workers' Compensation Administration,
Louisiana Workforce Commission or his designee.
(6) The legislative auditor or his designee.
(7) A member appointed by the Society of Louisiana Certified Public Accountants.
(8) A member appointed by the Taxation Section of the Louisiana State Bar
Association.
(9) A member appointed by the National Federation of Independent Business.
(10) A member appointed by the American Payroll Association.
(11) A member appointed by the National Payroll Reporting Consortium.
(12) A member appointed by the Louisiana Association of Business and Industry.
(13) A member appointed by the Louisiana AFL-CIO.
BE IT FURTHER RESOLVED that the Department of Revenue shall provide staff
support to the task force through existing personnel within the department.
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BE IT FURTHER RESOLVED that the secretary of the Department of Revenue or
her designee shall convene the task force for an initial meeting no later than
November 13, 2020, and the members shall elect a chairman, vice chairman, and other
officers as they may deem appropriate. A majority of the membership of the task force shall
constitute a quorum.
BE IT FURTHER RESOLVED that members of the task force shall receive no
compensation for their services or expenses.
BE IT FURTHER RESOLVED that the task force shall hold meetings to receive
testimony from interested taxpayers, stakeholders, and organizations; review current
initiatives of the administering state agencies responsible for collecting any tax or fee that
may be diminished due to misclassification of employees; review measures enacted by other
states to address misclassification of employees; review current state laws regulating the
classification of employees and the related investigatory and enforcement tools of the
administering state agencies; and consider any other items related to misclassification of
employees.
BE IT FURTHER RESOLVED that the task force shall prepare and submit a final
report that contains a detailed statement of the findings and policy recommendations,
including any proposed legislation, to the Senate Committee on Revenue and Fiscal Affairs,
the House Committee on Ways and Means, the Senate Committee on Labor and Industrial
Relations, and the House Committee on Labor and Industrial Relations no later than
March 1, 2021.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
secretary of the Department of Revenue and the secretary of the Louisiana Workforce
Commission.
PRESIDENT OF THE SENATE
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