LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 92 SLS 21RS 98
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 26, 2021 9:01 AM Author: LUNEAU
Dept./Agy.: Louisiana Department of Revenue
Subject: Misclassification of Employees Analyst: Monique Appeaning
REVENUE DEPARTMENT OR INCREASE SG RV See Note Page 1 of 1
Provides for uniform definitions of independent contractor and employee, and for penalties for the misclassification of
employees. (2/3 - CA7s2.1(A)) (1/1/22)
Proposed law defines “employee” and “misclassified employee”. Proposed law provides a specific exclusion for the term
“employment”. Proposed law amends present law of “liability of employer” and enacts specific provisions when an employer
misclassified an employee. Proposed law adds “liability of contractor” provisions that pertains to contractors who knew or
had reason to know that amounts paid to its subcontractor included labor costs of misclassified employees, including specific
authority granted to the secretary to impost a penalty. Proposed law adds specific penalties for failure to submit quarterly
returns, annual returns, and receipts required to be furnished under RS 47:112(L) [Receipts for Employees] or the failure to
remit the amount required to be withheld is due to the misclassification of an employee. Proposed law provides that a
complete record of penalty remittances and waivers pursuant to proposed law shall be kept by the secretary,
notwithstanding specific provisions of present law, these remittances and waivers shall be published in the department’s
annual report.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law may create a indeterminable workload impact for the Louisiana Department of Revenue (LDR) local taxing
authorities, and local governing authorities associated with appeals, reviews of appeals and other activities addressed in this
measure. The net impact of these changes are indeterminable. The LDR reports workload changes may be absorbed within
existing budgetary resources but the department may need additional personnel dedicated to these activities. The
Legislative Fiscal Office will update this document upon receiving additional information from LDR.
REVENUE EXPLANATION
Proposed law may result in an indeterminable increase in SGR to the LDR when specific penalties are imposed to employers
who misclassify employees and who fail to withhold the amounts required to be withheld; also, when contractors who knew
or had reason to know that amounts paid to their subcontractors included labor costs of misclassified employees.
Proposed law may result in an indeterminable increase in SGR to LDR when specific penalties are imporsed to employers for
failure to submit quarterly returns, annual returns, and receipts required to be furnished under RS 47:112(L) [Receipts for
Employees] or the failure to remit the amount required to be withheld is due to the misclassification of am employee.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
SB92 Original: 47:111(A)(10), 47:114(F)(2)