AB474: Bill Text

The bill provides that the penalty for violations occurring after the third such violation is $3,000 per violation, and $4,000 for violations occurring after the fourth such violation.

Worker misclassification outreach

The bill requires the Department of Administration to direct state agencies, constitutional offices, departments, independent agencies, and societies, associations, and certain other agencies of state government for which appropriations are made by law, to provide educational outreach regarding worker misclassification to employers, workers, and organizations that serve vulnerable populations.

Worker misclassification information

The bill requires the Department of Financial Institutions to provide informational materials and resources on worker misclassification to each person who files with DFI documents forming a business corporation, nonstock corporation, limited liability company, limited liability partnership, or limited partnership.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AB474,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB474,1 Section 1. 16.40 (24) of the statutes is created to read:

AB474,,6 16.40 (24) Worker misclassification outreach. Direct all departments to provide targeted educational outreach regarding worker misclassification in English, Spanish, and other languages spoken by a significant number of individuals in this state, to employers, workers, and organizations that serve vulnerable populations, including individuals with limited English proficiency. The outreach shall emphasize the appropriate departments to contact and the rights of individuals to remain anonymous when reporting worker misclassification.

AB474,2 Section 2. 102.85 (1) (a) of the statutes is amended to read:

AB474,,8 102.85 (1) (a) An For each act occurring before the date of the first determination of a violation of this subsection, an employer who fails to comply with s. 102.16 (3) or 102.28 (2) for less than 11 days shall forfeit not less than $100 nor and not more than $1,000.

AB474,3 Section 3. 102.85 (1) (b) of the statutes is amended to read:

AB474,,10 102.85 (1) (b) An For each act occurring after the date of the first or second determination of a violation of this subsection, an employer who fails to comply with s. 102.16 (3) or 102.28 (2) for more than 10 days shall forfeit not less than $10 nor and not more than $100 for each day on which the employer fails to comply with s. 102.16 (3) or 102.28 (2).

AB474,4 Section 4. 102.85 (1) (c) of the statutes is created to read:

AB474,,12 102.85 (1) (c) For each act occurring after the date of the 3rd determination of a violation of this subsection, the employer shall be assessed a penalty in the amount of $3,000 for each act, or 3 times the amount of the premium that would have been payable, whichever is greater.

AB474,5 Section 5. 102.85 (1) (d) of the statutes is created to read:

AB474,,14 102.85 (1) (d) For each act occurring after the date of the 4th determination of a violation of this subsection, the employer shall be assessed a penalty in the amount of $4,000 for each act, or 4 times the amount of the premium that would have been payable, whichever is greater.

AB474,6 Section 6. 102.85 (2) (intro.) of the statutes is amended to read:

AB474,,16 102.85 (2) (intro.) An For each act occurring after the date of the first determination under this subsection, an employer who is required to provide worker’s compensation insurance coverage under this chapter shall forfeit not less than $100 nor and not more than $1,000 if the employer does any of the following:

AB474,7 Section 7. 102.85 (2j) of the statutes is created to read:

AB474,,18 102.85 (2j) For each act occurring after the date of the 3rd determination under sub. (2), an employer who is required to provide worker’s compensation insurance coverage under this chapter shall forfeit $3,000 per violation.

AB474,8 Section 8. 102.85 (2k) of the statutes is created to read:

AB474,,20 102.85 (2k) For each act occurring after the date of the 4th determination under sub. (2), an employer who is required to provide worker’s compensation insurance coverage under this chapter shall forfeit $4,000 per violation.

AB474,9 Section 9. 103.005 (4m) of the statutes is created to read:

AB474,,22 103.005 (4m) (a) The department shall design and make available to employers a notice regarding worker classification laws, requirements for employers and employees, and penalties for noncompliance.

AB474,,23 (b) All employers shall post, in one or more conspicuous places where notices to employees are customarily posted, the notice designed by the department under par. (a). Any employer who violates this paragraph shall forfeit not more than $100 for each offense.

AB474,,24 (c) The department shall establish and maintain on the department’s website information regarding worker classification laws, requirements for employers and employees, penalties for noncompliance, and contact information at each state agency that administers worker classification laws.

AB474,10 Section 10. 108.221 (1) (a) of the statutes is renumbered 108.221 (1) (a) (intro.) and amended to read:

AB474,,26 108.221 (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:

AB474,,27 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.

AB474,11 Section 11. 108.221 (1) (a) 2. of the statutes is created to read:

AB474,,29 108.221 (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.

AB474,12 Section 12. 108.221 (2) of the statutes is renumbered 108.221 (2) (intro.) and amended to read:

AB474,,31 108.221 (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:

AB474,,32 (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.

AB474,13 Section 13. 108.221 (2) (b) of the statutes is created to read:

AB474,,34 108.221 (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.

AB474,14 Section 14. 182.01 (8) of the statutes is created to read:

AB474,,36 182.01 (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:

AB474,,37 (a) Articles of incorporation under s. 180.0202 or 181.0202.

AB474,,38 (b) Articles of organization under s. 183.0201.

AB474,,39 (c) A statement of qualification under s. 178.0901.

AB474,,40 (d) A certificate of limited partnership under s. 179.0201.

AB474,15 Section 15. 601.41 (12) of the statutes is created to read:

AB474,,42 601.41 (12) 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.

AB474,,43 (end)