Texas 2017 - 85th Regular

Texas Senate Bill SB592 Compare Versions

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

Old	New	Differences
1	1	85R6887 SMT-D
2	2	By: Lucio S.B. No. 592
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the classification of workers for purposes of the Texas
8	8	Unemployment Compensation Act; providing a penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 201.041, Labor Code, is amended to read
11	11	as follows:
12	12	Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT;
13	13	PRESUMPTION OF EMPLOYMENT. (a) In this subtitle, "employment"
14	14	means a service, including service in interstate commerce,
15	15	performed by an individual for wages or under an express or implied
16	16	contract of hire.
17	17	(b) An individual performing a service for wages or under an
18	18	express or implied contract of hire is presumed to be an employee of
19	19	the person for whom the service is performed.
20	20	(c) A presumption under Subsection (b) may be rebutted if
21	21	the person for whom the service is performed shows[, unless it is
22	22	shown] to the satisfaction of the commission that the individual's
23	23	performance of the service has been and will continue to be free
24	24	from control or direction under the contract and in fact.
25	25	SECTION 2. Section 203.202, Labor Code, is amended by
26	26	adding Subsection (a-1) to read as follows:
27	27	(a-1) Notwithstanding Subsection (a), money credited to the
28	28	special administration fund from penalties assessed under Section
29	29	214.008(c-1) shall be used only to pay costs related to
30	30	identifying, investigating, and preventing worker
31	31	misclassification.
32	32	SECTION 3. The heading to Section 214.008, Labor Code, is
33	33	amended to read as follows:
34	34	Sec. 214.008. MISCLASSIFICATION OF [CERTAIN] WORKERS;
35	35	PENALTY.
36	36	SECTION 4. Section 214.008, Labor Code, is amended by
37	37	adding Subsections (b-1) and (c-1) to read as follows:
38	38	(b-1) A person, other than a person to whom Subsection (a)
39	39	or (b) applies, shall properly classify, as an employee or
40	40	independent contractor in accordance with Chapter 201, any
41	41	individual the person directly retains and compensates for the
42	42	performance of a service.
43	43	(c-1) The commission may assess a penalty against a person
44	44	who fails to properly classify an individual as required by
45	45	Subsection (b-1), in an amount not to exceed $200 for each
46	46	individual that the person has not properly classified. The amount
47	47	of the penalty may be based on:
48	48	(1) the seriousness of the violation, including the
49	49	nature, circumstances, extent, and gravity of any prohibited acts;
50	50	(2) the history of previous violations;
51	51	(3) the amount necessary to deter future violations;
52	52	or
53	53	(4) efforts to correct the violation.
54	54	SECTION 5. Section 214.008, Labor Code, as amended by this
55	55	Act, applies only to service performed by an individual on or after
56	56	the effective date of this Act. Service performed by an individual
57	57	before the effective date of this Act is governed by the law in
58	58	effect on the date the service was performed, and the former law is
59	59	continued in effect for that purpose.
60	60	SECTION 6. This Act takes effect September 1, 2017.