The bill amends the Occupations Code to address the classification of employees by companies operating under the Private Security Act. It introduces a new provision that prohibits individuals licensed solely as security services contractors from intentionally misclassifying employees as independent contractors, in violation of federal guidelines. This is outlined in the newly added Subsection (b-1) of Section 1702.127.

Additionally, the bill establishes a new section, 1702.290, which mandates that during audits or inspections of security services contractors, the department must review employment records to ensure compliance with the classification rules. If misclassification is found, the department is required to inform the Texas Workforce Commission. The provisions of this bill will take effect on September 1, 2025, and apply only to audits or inspections conducted after that date.

Statutes affected:
Introduced: Occupations Code 1702.127 (Occupations Code 1702)
House Committee Report: Occupations Code 1702.127 (Occupations Code 1702)