Texas 2019 - 86th Regular

Texas House Bill HB2242 Compare Versions

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

Old	New	Differences
1	1	86R11273 SMT-F
2	2	By: Vo H.B. No. 2242
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 an administrative
9	9	penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 201.041, Labor Code, is amended to read
12	12	as follows:
13	13	Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT;
14	14	PRESUMPTION OF EMPLOYMENT. (a) In this subtitle, "employment"
15	15	means a service, including service in interstate commerce,
16	16	performed by an individual for wages or under an express or implied
17	17	contract of hire.
18	18	(b) An individual performing a service for wages or under an
19	19	express or implied contract of hire, other than a service described
20	20	by Subchapter E, is presumed to be an employee of the person for
21	21	whom the service is performed.
22	22	(c) A presumption under Subsection (b) may be rebutted if
23	23	the person for whom the service is performed shows[, unless it is
24	24	shown] to the satisfaction of the commission that the individual's
25	25	performance of the service has been and will continue to be free
26	26	from control or direction under the contract and in fact.
27	27	SECTION 2. Section 203.202, Labor Code, is amended by
28	28	adding Subsection (a-1) to read as follows:
29	29	(a-1) Notwithstanding Subsection (a), money credited to the
30	30	special administration fund from penalties assessed under Section
31	31	214.008(c-1) shall be used only to pay costs related to
32	32	identifying, investigating, and preventing worker
33	33	misclassification.
34	34	SECTION 3. The heading to Section 214.008, Labor Code, is
35	35	amended to read as follows:
36	36	Sec. 214.008. MISCLASSIFICATION OF [CERTAIN] WORKERS;
37	37	PENALTY.
38	38	SECTION 4. Section 214.008, Labor Code, is amended by
39	39	adding Subsections (b-1), (c-1), and (c-2) to read as follows:
40	40	(b-1) A person, other than a person to whom Subsection (a)
41	41	or (b) applies, shall properly classify as an employee or
42	42	independent contractor in accordance with Chapter 201 and pay a
43	43	contribution on wages for employment as required by Section 204.002
44	44	for any individual the person directly retains and compensates for
45	45	the performance of a service.
46	46	(c-1) The commission may assess a penalty against a person
47	47	who fails to properly classify, or pay a contribution on wages for,
48	48	an individual as required by Subsection (b-1) if the commission
49	49	determines that the person has previously failed to properly
50	50	classify, or pay a contribution on wages for, one or more
51	51	individuals as required by that subsection.
52	52	(c-2) The amount of a penalty assessed under Subsection
53	53	(c-1) may not exceed $200 for each individual that the person has
54	54	not properly classified or for whom the person has not paid a
55	55	contribution on wages for employment. The amount of the penalty
56	56	must be based on:
57	57	(1) the seriousness of the violation, including the
58	58	nature, circumstances, extent, and gravity of any prohibited acts;
59	59	(2) the history of previous violations;
60	60	(3) the amount necessary to deter future violations;
61	61	or
62	62	(4) efforts to correct the violation.
63	63	SECTION 5. Section 214.008, Labor Code, as amended by this
64	64	Act, applies only to service performed by an individual on or after
65	65	the effective date of this Act. Service performed by an individual
66	66	before the effective date of this Act is governed by the law in
67	67	effect on the date the service was performed, and the former law is
68	68	continued in effect for that purpose.
69	69	SECTION 6. This Act takes effect September 1, 2019.