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A BILL TO BE ENTITLED
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AN ACT
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relating to the classification of workers for purposes of the Texas |
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Unemployment Compensation Act; providing an administrative |
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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. Section 201.041, Labor Code, is amended to read |
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as follows: |
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Sec. 201.041. GENERAL DEFINITION OF EMPLOYMENT; |
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PRESUMPTION OF EMPLOYMENT. (a) In this subtitle, "employment" |
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means a service, including service in interstate commerce, |
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performed by an individual for wages or under an express or implied |
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contract of hire. |
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(b) An individual performing a service for wages or under an |
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express or implied contract of hire, other than a service described |
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by Subchapter E, is presumed to be an employee of the person for |
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whom the service is performed. |
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(c) A presumption under Subsection (b) may be rebutted if |
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the person for whom the service is performed shows[, unless it is
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shown] to the satisfaction of the commission that the individual's |
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performance of the service has been and will continue to be free |
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from control or direction under the contract and in fact. |
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SECTION 2. Section 203.202, Labor Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) Notwithstanding Subsection (a), money credited to the |
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special administration fund from penalties assessed under Section |
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214.008(c-1) shall be used only to pay costs related to |
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identifying, investigating, and preventing worker |
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misclassification. |
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SECTION 3. The heading to Section 214.008, Labor Code, is |
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amended to read as follows: |
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Sec. 214.008. MISCLASSIFICATION OF [CERTAIN] WORKERS; |
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PENALTY. |
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SECTION 4. Section 214.008, Labor Code, is amended by |
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adding Subsections (b-1), (c-1), and (c-2) to read as follows: |
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(b-1) A person, other than a person to whom Subsection (a) |
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or (b) applies, shall properly classify as an employee or |
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independent contractor in accordance with Chapter 201 and pay a |
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contribution on wages for employment as required by Section 204.002 |
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for any individual the person directly retains and compensates for |
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the performance of a service. |
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(c-1) The commission may assess a penalty against a person |
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who fails to properly classify, or pay a contribution on wages for, |
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an individual as required by Subsection (b-1) if the commission |
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determines that the person has previously failed to properly |
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classify, or pay a contribution on wages for, one or more |
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individuals as required by that subsection. |
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(c-2) The amount of a penalty assessed under Subsection |
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(c-1) may not exceed $200 for each individual that the person has |
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not properly classified or for whom the person has not paid a |
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contribution on wages for employment. The amount of the penalty |
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must be based on: |
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(1) the seriousness of the violation, including the |
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nature, circumstances, extent, and gravity of any prohibited acts; |
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(2) the history of previous violations; |
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(3) the amount necessary to deter future violations; |
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or |
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(4) efforts to correct the violation. |
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SECTION 5. Section 214.008, Labor Code, as amended by this |
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Act, applies only to service performed by an individual on or after |
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the effective date of this Act. Service performed by an individual |
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before the effective date of this Act is governed by the law in |
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effect on the date the service was performed, and the former law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2019. |