AB462: Bill Text

AB462,9,15 108.221 (1) (a) (intro.) Any employer described in s. 108.18 (2) (c) or engaged in the painting or drywall finishing of buildings or other structures who knowingly and intentionally provides false information to the department for the purpose of misclassifying or attempting to misclassify an individual who is an employee of the employer as a nonemployee shall, for each incident, be assessed a penalty by the department as follows:

AB462,9,19 1. For each act occurring before the date of the first determination of a violation of this subsection, the employer shall be assessed a penalty in the amount of $500 for each employee who is misclassified, but not to exceed $7,500 per incident.

AB462,21 Section 21. 108.221 (1) (a) 2. of the statutes is created to read:

AB462,9,23 108.221 (1) (a) 2. For each act occurring after the date of the first determination of a violation of this subsection, the employer shall be assessed a penalty in the amount of $1,000 for each employee who is misclassified.

AB462,22 Section 22. 108.221 (2) of the statutes is renumbered 108.221 (2) (intro.) and amended to read:

AB462,10,6 108.221 (2) (intro.) Any employer described in s. 108.18 (2) (c) or engaged in the painting or drywall finishing of buildings or other structures who, through coercion, requires an individual to adopt the status of a nonemployee shall be assessed a penalty by the department as follows:

AB462,10,9 (a) For each act occurring before the date of the first determination of a violation of this subsection, the employer shall be assessed a penalty in the amount of $1,000 for each individual so coerced, but not to exceed $10,000 per calendar year.

AB462,23 Section 23. 108.221 (2) (b) of the statutes is created to read:

AB462,10,13 108.221 (2) (b) For each act occurring after the date of the first determination of a violation of this subsection, the employer shall be assessed a penalty in the amount of $2,000 for each individual so coerced.

AB462,24 Section 24. 182.01 (8) of the statutes is created to read:

AB462,10,17 182.01 (8) Information to be provided with business formation filings. The department shall provide informational materials and resources on worker misclassification to each person who files with the department any of the following:

AB462,10,18 (a) Articles of incorporation under s. 180.0202 or 181.0202.

AB462,10,19 (b) Articles of organization under s. 183.0201.

AB462,10,20 (c) A statement of qualification under s. 178.0901.

AB462,10,21 (d) A certificate of limited partnership under s. 179.0201.

AB462,25 Section 25. 601.41 (14) of the statutes is created to read:

AB462,11,4 601.41 (14) Employee misclassification outreach and education. The commissioner shall, on at least an annual basis, conduct outreach and education to persons subject to regulation under chs. 600 to 655 on how to identify the misclassification of employees as independent contractors and how to report suspected misclassifications to the appropriate federal and state agencies.

AB462,26 Section 26. 943.395 (1) (e) of the statutes is created to read:

AB462,11,8 943.395 (1) (e) Presents an application for worker’s compensation insurance coverage that is false or fraudulent or that falsely or fraudulently misclassifies employees to lower worker’s compensation insurance premiums.

AB462,27 Section 27. Nonstatutory provisions.

AB462,11,12 (1) Investigation and enforcement of worker classification. The department of workforce development shall do all of the following before December 31, 2026:

AB462,11,17 (a) Require the unemployment insurance division, in coordination with the division of personnel management in the department of administration, to review all recruitment and onboarding programs to ensure that auditor positions are correctly classified and the compensation for auditors is comparable to that in the private labor market.

AB462,11,20 (b) Review resources available to investigators and auditors and evaluate potential strategies and improvements that could be implemented, including at least all of the following:

AB462,11,21 1. Cross-training all investigators and auditors working in the department.

AB462,11,22 2. Adding bilingual staff.

AB462,12,2 3. Information technology improvements for more efficient exchange of information.

AB462,12,7 (2) Reporting. By no later than January 31, 2027, the department of workforce development shall submit a report to the chief clerk of each house of the legislature for distribution to the standing committees of the legislature under s. 13.172 (3) with jurisdiction over workforce development. The report shall include the findings of the department under sub. (1) (a) and (b).

AB462,28 Section 28. Fiscal changes.

AB462,12,17 (1) Investigation and enforcement of worker classification. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (gc), the dollar amount for fiscal year 2025-26 is increased by $157,500 to increase the authorized FTE positions for the department by 3.0 PR positions for the purpose of investigating and enforcing worker classification laws and rules. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (gc), the dollar amount for fiscal year 2026-27 is increased by $210,000 for the positions authorized under this subsection.

AB462,12,18 (end)