Sec. 214.008. MISCLASSIFICATION OF CERTAIN WORKERS; PENALTY. (a) A person who contracts with a governmental entity to provide a service as defined by Section 2155.001, Government Code, shall properly classify, as an employee or independent contractor in accordance with Chapter 201, any individual the person directly retains and compensates for services performed in connection with the contract.
(b) In this subsection, "subcontractor" means a person directly retained and compensated by a person who contracts with a governmental entity to provide a service as defined by Section 2155.001, Government Code. A subcontractor shall properly classify, as an employee or independent contractor in accordance with Chapter 201, any individual the subcontractor directly retains and compensates for services performed in connection with the contract for which the subcontractor is retained.
(c) A person who fails to properly classify an individual as required by Subsection (a) or (b) shall pay to the commission a penalty equal to $200 for each individual that the person has not properly classified.
(d) The commission may not take action to collect a penalty under this section from a person after the third anniversary of the date on which the violation occurred.
Added by Acts 2013, 83rd Leg., R.S., Ch. 335 (H.B. 2015), Sec. 1, eff. January 1, 2014.
Structure Texas Statutes
Title 4 - Employment Services and Unemployment
Subtitle A - Texas Unemployment Compensation Act
Chapter 214 - Offenses, Penalties, and Sanctions
Section 214.001. Fraudulently Obtaining Benefits or Other Payment
Section 214.002. Liability for Improperly Obtaining Benefits
Section 214.003. Forfeiture or Cancellation of Benefits Paid and Remaining Benefits; Penalty
Section 214.004. Fraudulently Avoiding Contribution or Payment of Benefits
Section 214.005. Failure or Refusal to Make Contribution or Other Payment
Section 214.006. Offenses Regarding Reports and Records
Section 214.007. General Offense
Section 214.008. Misclassification of Certain Workers; Penalty