Texas Bill Would Tighten Contractor Criteria For Builders

Law360, Houston (January 10, 2013, 7:43 PM EST) -- A Texas lawmaker on Tuesday proposed legislation aimed at restricting when a construction industry worker can be classified as an independent contractor, in a bid to prevent employers and employees alike from ducking federal and state tax obligations.

HB 372 — the Workplace Fraud Prevention Act — imposes penalties on companies and employees who use the independent contractor designation to cut costs or receive pay “under the table,” according to an aide to the bill’s author, Rep. Joseph Deshotel, D-Beaumont.

“The Workplace Fraud Prevention Act levels...
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