Texas House Bill HB2015

Texas 2013 - 83rd Regular

Caption

Relating to the proper classification of workers performing services in connection with governmental contracts; providing a penalty.

Impact

If enacted, HB 2015 would amend the Labor Code by introducing penalties for misclassifying workers. A contracting person or entity that fails to classify workers correctly would face a penalty of $200 per improperly classified individual. This measure aims to encourage compliance with worker classification standards among those engaging workers in government-related services, ensuring fair labor practices are upheld. The provision which prohibits the collection of penalties after three years adds a layer of protection for individuals while still emphasizing accountability.

Summary

House Bill 2015 addresses the classification of workers associated with governmental contracts in Texas. The bill mandates that any individual contracted to provide services to a government entity must be correctly classified as either an employee or an independent contractor. This classification must adhere to existing labor regulations outlined in Chapter 201 of the Labor Code. The intent of this bill is to eliminate confusion and ensure correct classification, thereby protecting the rights of workers and preventing misclassifications that could lead to legal issues.

Contention

The discussion surrounding HB 2015 could center on concerns related to the implications for governmental contracts and the agencies responsible for compliance. Some lawmakers may argue that the penalties outlined in the bill are necessary to deter misclassification, which can deprive workers of benefits and protections that employees are entitled to. Conversely, opponents might express fears that such penalties could discourage participation in government contracting or impose excessive burdens on small businesses that may lack the resources to manage classification compliance effectively.