Lawmakers search to trace, examine employee misclassification

Indiana lawmakers are expected to consider legislation Thursday that would require several state agencies to investigate worker misclassification.

HB 1132 would require the Treasury Department, Department of Labor, Indiana Worker’s Compensation Board, and Department of Workforce Development to report data on this to the State Interim Study Committee on Employment and Labor by September 1 and by 2024 to help Identify companies that misclassify workers.

Specifically, the reports would include the number of employers identified by each department or board in the immediately preceding fiscal year with at least one employee wrongly identified as an independent contractor. the total number of workers improperly classified by these employers; the calculation of the department or board of directors of unaccounted revenue or the additional cost to the state that the department or board of directors ascribes to improperly classified workers; and the amount of penalties and interest imposed by each department or the board on those employers and the amount of penalties and interest imposed on them.

The preliminary study committee would use the information according to the draft law “for the purpose of evaluating the results of legislative action as needed”.

The bill would exclude contractors from the term “employer” for reporting purposes.

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