Assembly Bill 1160 aims to address the misclassification of employees by establishing penalties for employers who incorrectly classify employees as nonemployees. The bill repeals existing statutes 71.63 (3) (d) and 71.65 (6) and introduces new provisions under 71.83 (1) (a) 1n. and 71.83 (1) (b) 3m. It specifies that if an employer misclassifies an employee as a nonemployee due to willful neglect, they may face a penalty of $500 for each violation. Additionally, if an employer has three or more cases of negligent misclassification within a five-year period, subsequent misclassifications will be treated as intentional unless the employer can prove otherwise.

Furthermore, the bill maintains the existing $25,000 penalty for employers who intentionally provide false information to the Department of Revenue (DOR) or attempt to evade state income tax laws through misclassification. The definition of "employer" is expanded to include all employers, not just those in construction or related fields. The DOR is also granted the authority to publish a list of individuals who have been penalized for misclassification on its website, including their names, addresses, and the dates penalties were imposed, after all appeal rights have expired.

Statutes affected:
Bill Text: 71.63(3)(d), 71.63, 71.65(6), 71.65