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A BILL TO BE ENTITLED
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AN ACT
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relating to the proper classification of workers performing |
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services in connection with governmental contracts; providing a |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 214, Labor Code, is amended by adding |
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Section 214.008 to read as follows: |
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Sec. 214.008. MISCLASSIFICATION OF CERTAIN WORKERS; |
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PENALTY. (a) A person who contracts with a governmental entity to |
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provide a service as defined by Section 2155.001, Government Code, |
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shall properly classify, as an employee or independent contractor |
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in accordance with Chapter 201, any individual the person directly |
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retains and compensates for services performed in connection with |
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the contract. |
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(b) In this subsection, "subcontractor" means a person |
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directly retained and compensated by a person who contracts with a |
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governmental entity to provide a service as defined by Section |
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2155.001, Government Code. A subcontractor shall properly |
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classify, as an employee or independent contractor in accordance |
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with Chapter 201, any individual the subcontractor directly retains |
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and compensates for services performed in connection with the |
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contract for which the subcontractor is retained. |
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(c) A person who fails to properly classify an individual as |
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required by Subsection (a) or (b) shall pay to the commission a |
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penalty equal to $200 for each individual that the person has not |
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properly classified. |
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(d) The commission may not take action to collect a penalty |
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under this section from a person after the third anniversary of the |
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date on which the violation occurred. |
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SECTION 2. This Act takes effect January 1, 2014. |