86R11273 SMT-F
By: Dutton H.B. No. 2391
A BILL TO BE ENTITLED
AN ACT
relating to the classification of workers for purposes of the Texas
Unemployment Compensation Act; providing an administrative
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.041, Labor Code, is amended to read
as follows:
Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT;
PRESUMPTION OF EMPLOYMENT. (a) In this subtitle, "employment"
means a service, including service in interstate commerce,
performed by an individual for wages or under an express or implied
contract of hire.
(b) An individual performing a service for wages or under an
express or implied contract of hire, other than a service described
by Subchapter E, is presumed to be an employee of the person for
whom the service is performed.
(c) A presumption under Subsection (b) may be rebutted if
the person for whom the service is performed shows[, unless it is
shown] to the satisfaction of the commission that the individual's
performance of the service has been and will continue to be free
from control or direction under the contract and in fact.
SECTION 2. Section 203.202, Labor Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), money credited to the
special administration fund from penalties assessed under Section
214.008(c-1) shall be used only to pay costs related to
identifying, investigating, and preventing worker
misclassification.
SECTION 3. The heading to Section 214.008, Labor Code, is
amended to read as follows:
Sec. 214.008. MISCLASSIFICATION OF [CERTAIN] WORKERS;
PENALTY.
SECTION 4. Section 214.008, Labor Code, is amended by
adding Subsections (b-1), (c-1), and (c-2) to read as follows:
(b-1) A person, other than a person to whom Subsection (a)
or (b) applies, shall properly classify as an employee or
independent contractor in accordance with Chapter 201 and pay a
contribution on wages for employment as required by Section 204.002
for any individual the person directly retains and compensates for
the performance of a service.
(c-1) The commission may assess a penalty against a person
who fails to properly classify, or pay a contribution on wages for,
an individual as required by Subsection (b-1) if the commission
determines that the person has previously failed to properly
classify, or pay a contribution on wages for, one or more
individuals as required by that subsection.
(c-2) The amount of a penalty assessed under Subsection
(c-1) may not exceed $200 for each individual that the person has
not properly classified or for whom the person has not paid a
contribution on wages for employment. The amount of the penalty
must be based on:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of any prohibited acts;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
or
(4) efforts to correct the violation.
SECTION 5. Section 214.008, Labor Code, as amended by this
Act, applies only to service performed by an individual on or after
the effective date of this Act. Service performed by an individual
before the effective date of this Act is governed by the law in
effect on the date the service was performed, and the former law is
continued in effect for that purpose.
SECTION 6. This Act takes effect September 1, 2019.