Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB474

Introduced
10/11/23  
Refer
10/11/23  

Caption

Employee misclassification and providing a penalty. (FE)

Impact

This legislative action is poised to significantly affect state laws concerning worker classification and penalties for noncompliance. Under the bill, penalties for intentional misclassification are strengthened, removing existing caps and doubling penalties for repeat violations. Employers who misclassify workers could face substantial fines, ranging from $500 to $4,000 per violation depending on the circumstances, aligning financial repercussions more closely with the severity of the violations. This change aims to deter employers from engaging in deceptive practices concerning worker classification.

Closing

Overall, AB474 represents a concerted effort to enhance protections for workers in Wisconsin by increasing accountability for employers regarding the classification of their workforce. Its implications extend beyond immediate financial penalties, potentially fostering a more informed dialogue about labor rights and employer responsibilities in the state.

Summary

Assembly Bill 474 focuses on addressing the issue of worker misclassification in Wisconsin. The bill mandates that the Department of Administration engage in educational outreach to employers, workers, and organizations that help vulnerable populations, emphasizing the importance of correct worker classification. The Department of Financial Institutions is also required to provide information regarding worker misclassification to persons filing business-related documents, thereby raising awareness about the potential exploitation of employees through misclassification.

Contention

Notable points of contention surrounding AB474 involve debates regarding employer obligations and the balance between oversight and business autonomy. Proponents argue that clearer regulations and penalties protect workers from being deprived of rights associated with employee status, which can include benefits such as unemployment insurance and worker’s compensation. On the other hand, some business groups and employers voice concerns over the burden of increased penalties and the potential for misinterpretation of the law, which might lead to unintentional infractions.

Companion Bills

No companion bills found.

Previously Filed As

WI AB398

Participants in clinical research trials. (FE)

WI AB475

Worker misclassification and providing a penalty.

WI HF4444

Misclassification of employees prohibited, penalties imposed, and data classified.

WI SB244

Provides for uniform definitions of independent contractor and employee and for penalties for the misclassification of employees. (2/3 - CA7s2.1(A)) (1/1/22) (EN SEE FISC NOTE OF RV See Note)

WI SF4483

Misclassification of employees prohibition; appropriating money

WI HB151

Provides for an increase in the administrative penalties assessed for the misclassification of employees (OR INCREASE SG RV See Note)

WI HB665

Provides for an increase in the administrative penalties assessed for the misclassification of employees (EG +$3,250,000 SG RV See Note)

WI SB92

Provides for uniform definitions of independent contractor and employee, and for penalties for the misclassification of employees. (2/3 - CA7s2.1(A)) (1/1/22) (OR INCREASE SG RV See Note)

WI HB34

Provides for an increase in the administrative penalties assessed for the misclassification of employees (Item #24) (OR INCREASE SD RV See Note)

WI HB397

Provides for an increase in the administrative penalties assessed for the misclassification of employees (OR INCREASE SD RV See Note)

Similar Bills

AZ HB2265

Misclassification; tax fraud; task force

AZ HB2275

Misclassification; tax fraud; task force

AZ HB2494

Misclassification; tax fraud; task force

IA HF348

A bill for an act prohibiting the misclassification of employees as independent contractors, providing penalties, and including applicability provisions.

IA HF2371

A bill for an act prohibiting the misclassification of employees as independent contractors, providing penalties, and including applicability provisions.

WI AB398

Participants in clinical research trials. (FE)

LA HB665

Provides for an increase in the administrative penalties assessed for the misclassification of employees (EG +$3,250,000 SG RV See Note)

LA HB151

Provides for an increase in the administrative penalties assessed for the misclassification of employees (OR INCREASE SG RV See Note)