Texas 2025 - 89th Regular

Texas House Bill HB1069 Compare Versions

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

Old	New	Differences
1	1	89R3596 RDS-F
2	2	By: Turner H.B. No. 1069
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the classification of certain construction workers and
10	10	the eligibility of those workers for unemployment benefits;
11	11	providing an administrative penalty.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter E, Chapter 201, Labor Code, is
14	14	amended by adding Section 201.079 to read as follows:
15	15	Sec. 201.079. SERVICE BY INDEPENDENT CONTRACTOR IN
16	16	CONSTRUCTION. (a) In this section, "construction" has the meaning
17	17	assigned by Section 301.201.
18	18	(b) In this subtitle, "employment" does not include
19	19	construction performed by an individual as an independent
20	20	contractor.
21	21	SECTION 2. Chapter 301, Labor Code, is amended by adding
22	22	Subchapter L to read as follows:
23	23	SUBCHAPTER L. CLASSIFICATION OF INDIVIDUAL EMPLOYED IN
24	24	CONSTRUCTION
25	25	Sec. 301.201. DEFINITIONS. In this subchapter:
26	26	(1) "Construction" means work related to the erection,
27	27	improvement, alteration, repair, renovation, maintenance, or
28	28	remodeling of a building, structure, appurtenance, road, highway,
29	29	bridge, dam, levee, canal, jetty, or other improvement to or on real
30	30	property, including moving, demolishing, dredging, shoring,
31	31	scaffolding, drilling, blasting, and excavating real property.
32	32	(2) "Contractor" means a person who contracts to
33	33	perform construction.
34	34	(3) "Employee" has the meaning assigned by Section
35	35	61.001.
36	36	Sec. 301.202. APPLICABILITY. (a) An individual may not be
37	37	considered an employee based solely on the fact that the person for
38	38	whom the individual is providing construction services requires
39	39	that any employee hired by the individual must:
40	40	(1) submit to a criminal background check or
41	41	preemployment drug screening; or
42	42	(2) possess a certain license or certification
43	43	relating to the work the employee will perform.
44	44	(b) A person for whom an individual is providing
45	45	construction services is not required to report to the commission
46	46	under Subtitle A that the individual is an employee of the person if
47	47	the person:
48	48	(1) shows that the individual is an independent
49	49	contractor;
50	50	(2) provides to the individual an Internal Revenue
51	51	Service Form 1099, or a similar form issued by, or that meets the
52	52	compliance guidelines of, the Internal Revenue Service, on which
53	53	the person reports the amount paid to the individual in accordance
54	54	with Internal Revenue Service requirements; and
55	55	(3) files the form described by Subdivision (2) with
56	56	the Internal Revenue Service in accordance with Internal Revenue
57	57	Service requirements.
58	58	(c) This subchapter does not apply to services performed by
59	59	an individual in the employ of:
60	60	(1) a state, a political subdivision of a state, or an
61	61	Indian tribe or an instrumentality of a state, political
62	62	subdivision of a state, or Indian tribe that is wholly owned by one
63	63	or more states, political subdivisions, or Indian tribes, provided
64	64	that the services are excluded from employment as defined in the
65	65	Federal Unemployment Tax Act (26 U.S.C. Section 3301 et seq.)
66	66	solely because of Section 3306(c)(7) of that Act; or
67	67	(2) a religious, charitable, educational, or other
68	68	organization, provided that the services are excluded from
69	69	employment as defined in the Federal Unemployment Tax Act (26
70	70	U.S.C. Section 3301 et seq.) solely because of Section 3306(c)(8)
71	71	of that Act.
72	72	Sec. 301.203. EMPLOYEE STATUS. A contractor shall properly
73	73	classify each individual providing construction services as either
74	74	an employee or an independent contractor in accordance with
75	75	commission rules.
76	76	Sec. 301.204. INFORMATION REGARDING COMPLAINTS. The
77	77	commission shall provide on its Internet website information
78	78	regarding the procedure for the public to report violations of this
79	79	subchapter.
80	80	Sec. 301.205. ADMINISTRATIVE PENALTY. (a) The commission
81	81	may impose an administrative penalty on a contractor who violates
82	82	Section 301.203. The amount of the penalty may not exceed:
83	83	(1) $100 for each individual who is not properly
84	84	classified; and
85	85	(2) $1,000 for each individual who is not properly
86	86	classified for each subsequent violation that occurs after the
87	87	imposition of a penalty for a prior violation.
88	88	(b) Any penalty issued under this section applies to a
89	89	successor business entity that:
90	90	(1) has one or more owners who jointly control at least
91	91	50 percent of the:
92	92	(A) original employer; and
93	93	(B) successor business entity; and
94	94	(2) is engaged in the same or similar business
95	95	activity.
96	96	(c) An administrative penalty imposed under this section
97	97	shall be imposed in the same manner as the commission imposes an
98	98	administrative penalty under other law.
99	99	Sec. 301.206. NOTIFICATION TO GOVERNMENTAL ENTITY. If the
100	100	commission determines that a contractor has violated this
101	101	subchapter, the commission shall provide notice of the violation to
102	102	each governmental entity that the commission reasonably believes
103	103	has received construction services provided by the contractor. The
104	104	notice must identify the contractor and, for each violation,
105	105	specify the type of service provided and the location at which the
106	106	service was provided, if known to the commission. In this section,
107	107	"governmental entity" has the meaning assigned by Section 406.096.
108	108	Sec. 301.207. ANNUAL REPORT. The commission shall issue an
109	109	annual report regarding compliance with and enforcement of this
110	110	subchapter. The report must include:
111	111	(1) the number of complaints received from the public;
112	112	(2) the number of investigated complaints and any
113	113	resulting findings; and
114	114	(3) the amount of unemployment taxes, interest,
115	115	administrative penalties, and fines actually collected as a result
116	116	of:
117	117	(A) violations of this subchapter; or
118	118	(B) the exclusion of construction performed by an
119	119	individual from the application of Subtitle A, unless the services
120	120	are excluded by application of Section 201.079.
121	121	SECTION 3. The change in law made by this Act applies only
122	122	to a claim for unemployment compensation benefits that is filed
123	123	with the Texas Workforce Commission on or after the effective date
124	124	of this Act. A claim filed before the effective date of this Act is
125	125	governed by the law in effect on the date the claim was filed, and
126	126	the former law is continued in effect for that purpose.
127	127	SECTION 4. This Act takes effect September 1, 2025.