Amendment AA6-ASA2-AB50

AB50-ASA2-AA6,91,5 104.001 (3) This section does not affect an ordinance that, subject to s. 66.0903, requires an employee of a city, village, town, or county, an employee who performs work under a contract for the provision of services to a city, village, town, or county, or an employee who performs work that is funded by financial assistance from a city, village, town, or county to be paid at a minimum wage rate specified in the ordinance.

AB50-ASA2-AA6,188 Section 188. 109.09 (3) of the statutes is repealed.

AB50-ASA2-AA6,189 Section 189. 947.21 of the statutes is repealed.”.

AB50-ASA2-AA6,91,8 18. At the appropriate places, insert all of the following:

AB50-ASA2-AA6,91,16 “Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated:

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AB50-ASA2-AA6,2 Section 2. 20.445 (1) (ra) of the statutes is amended to read:

AB50-ASA2-AA6,92,9 20.445 (1) (ra) Worker’s compensation operations fund; administration. From the worker’s compensation operations fund, the amounts in the schedule for the administration of the worker’s compensation program by the department, for assistance to the department of justice in investigating and prosecuting fraudulent activity related to worker’s compensation, for transfer to the uninsured employers fund under s. 102.81 (1) (c), and for transfer to the appropriation accounts under par. (rp) and s. 20.427 (1) (ra). All moneys received under ss. 102.28 (2) (b) and 102.75 (1) shall be credited to this appropriation account. From this appropriation, an amount not to exceed $5,000 may be expended each fiscal year for payment of expenses for travel and research by the council on worker’s compensation, an amount not to exceed $500,000 may be transferred in each fiscal year to the uninsured employers fund under s. 102.81 (1) (c), the amount in the schedule under par. (rp) shall be transferred to the appropriation account under par. (rp), and the amount in the schedule under s. 20.427 (1) (ra) shall be transferred to the appropriation account under s. 20.427 (1) (ra).

AB50-ASA2-AA6,3 Section 3. 20.445 (1) (rr) of the statutes is created to read:

AB50-ASA2-AA6,92,15 20.445 (1) (rr) Worker’s compensation operations fund; special assessment insurer reimbursements. From the worker’s compensation operations fund, the amounts in the schedule for providing reimbursement to insurance carriers paying supplemental benefits under s. 102.44 (1) (c). All moneys received under s. 102.75 (1g) shall be credited to this appropriation account.

AB50-ASA2-AA6,4 Section 4. 102.75 (1m) of the statutes is amended to read:

AB50-ASA2-AA6,92,22 102.75 (1m) The moneys collected under subs. (1) and (1g) and under ss. 102.28 (2) and 102.31 (7), together with all accrued interest, shall constitute a separate nonlapsible fund designated as the worker’s compensation operations fund. Moneys in the fund may be expended only as provided in ss. 20.427 (1) (ra) and 20.445 (1) (ra), (rb), and (rp), and (rr) and may not be used for any other purpose of the state.

AB50-ASA2-AA6,9250 Section 9250. Fiscal changes; Workforce Development.

AB50-ASA2-AA6,93,3 (1) Work injury supplemental benefits fund. On the effective date of this subsection, there is transferred from the appropriation account under s. 20.445 (1) (t) to the appropriation account under s. 20.445 (1) (rr) the unencumbered balance of the amount collected under s. 102.75 (1g).”.

AB50-ASA2-AA6,93,4 19. At the appropriate places, insert all of the following:

AB50-ASA2-AA6,93,5 “Section 9250. Fiscal changes; Workforce Development.

AB50-ASA2-AA6,93,13 (1) Hotline for employers. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (a), the dollar amount for fiscal year 2025-26 is increased by $64,000 to increase the authorized FTE positions for the department by 1.0 GPR employment and training specialist position to staff the hotline under s. 106.361. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (a), the dollar amount for fiscal year 2026-27 is increased by $82,800 to provide funding for the position authorized under this subsection.

AB50-ASA2-AA6,93,22 (2) Career navigators. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (a), the dollar amount for fiscal year 2025-26 is increased by $710,600 to increase the authorized FTE positions for the department by 11.0 GPR employment and training specialist positions to provide career navigator services. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (a), the dollar amount for fiscal year 2026-27 is increased by $910,800 to provide funding for the positions authorized under this subsection.

AB50-ASA2-AA6,94,7 (3) Vocational rehabilitation worker connection program. (a) State funding. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (5) (a), the dollar amount for fiscal year 2025-26 is increased by $6,356,900 to increase the authorized FTE positions for the department by 1.15 GPR vocational rehabilitation services positions and provide funding for those services. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (5) (a), the dollar amount for fiscal year 2026-27 is increased by $9,059,000 to provide funding for the positions and services authorized under this subsection.

AB50-ASA2-AA6,94,15 (b) Federal funding. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (5) (n), the dollar amount for fiscal year 2025-26 is increased by $287,900 to increase the authorized FTE positions for the department by 3.85 FED vocational rehabilitation services positions and provide funding for those services. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (5) (n), the dollar amount for fiscal year 2026-27 is increased by $20,564,300 to provide funding for the positions and services authorized under this subsection.

AB50-ASA2-AA6,94,23 (4) Technical education equipment grants. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (cg), the dollar amount for fiscal year 2025-26 is increased by $200,000 to provide increased funding for the technical education equipment grants under s. 106.275. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (cg), the dollar amount for fiscal year 2026-27 is increased by $200,000 to provide increased funding for the technical education equipment grants under s. 106.275.”.

AB50-ASA2-AA6,94,24 20. At the appropriate places, insert all of the following:

AB50-ASA2-AA6,95,1 “Section 190. 102.125 (1m) of the statutes is created to read:

AB50-ASA2-AA6,95,11 102.125 (1m) Application and premium fraud. If an insurer has evidence that an application for worker’s compensation insurance coverage is fraudulent or that an employer has committed fraud by misclassifying employees to lower the employer’s worker’s compensation insurance premiums in violation of s. 943.395, the insurer shall report the claim to the department. The department may require an insurer to investigate an allegedly fraudulent application or alleged fraud by misclassification of employees and may provide the insurer with any records of the department relating to that alleged fraud. An insurer that investigates alleged fraud under this subsection shall report the results of that investigation to the department.

AB50-ASA2-AA6,191 Section 191. 102.125 (2) of the statutes is amended to read:

AB50-ASA2-AA6,95,18 102.125 (2) Assistance by department of justice. The department of workforce development may request the department of justice to assist the department of workforce development in an investigation under sub. (1) or (1m) or in the investigation of any other suspected fraudulent activity on the part of an employer, employee, insurer, health care provider, or other person related to worker’s compensation.

AB50-ASA2-AA6,192 Section 192. 102.125 (3) of the statutes is amended to read:

AB50-ASA2-AA6,96,2 102.125 (3) Prosecution. If based on an investigation under sub. (1), (1m), or (2) the department has a reasonable basis to believe that a violation of s. 943.20, 943.38, 943.39, 943.392, 943.395, 943.40, or any other criminal law has occurred, the department shall refer the results of the investigation to the department of justice or to the district attorney of the county in which the alleged violation occurred for prosecution.

AB50-ASA2-AA6,193 Section 193. 102.16 (4) of the statutes is amended to read:

AB50-ASA2-AA6,96,11 102.16 (4) The department and the division have jurisdiction to pass on any question arising out of sub. (3) and to order the employer to reimburse an employee or other person for any sum deducted from wages or paid by him or her in violation of that subsection. In addition to the any penalty provided in s. 102.85 (1), any employer violating sub. (3) shall be liable to an injured employee for the reasonable value of the necessary services rendered to that employee under any arrangement made in violation of sub. (3) without regard to that employee’s actual disbursements for those services.

AB50-ASA2-AA6,194 Section 194. 102.82 (2) (a) (intro.) of the statutes is amended to read:

AB50-ASA2-AA6,96,16 102.82 (2) (a) (intro.) Except as provided in pars. (ag), (am), and (ar), all for a first or 2nd determination by the department that an employer was uninsured, an uninsured employers employer shall pay to the department the greater of the following:

AB50-ASA2-AA6,195 Section 195. 102.82 (2) (ab) of the statutes is created to read:

AB50-ASA2-AA6,96,20 102.82 (2) (ab) Except as provided in pars. (ag), (am), and (ar), for a 3rd determination by the department that an employer was uninsured, an uninsured employer shall pay to the department the greater of the following:

AB50-ASA2-AA6,97,2 1. Three times the amount determined by the department to equal what the uninsured employer would have paid during periods of illegal nonpayment for worker’s compensation in the preceding 3-year period, based on the employer’s payroll in the preceding 3 years.

AB50-ASA2-AA6,97,3 2. Three thousand dollars.

AB50-ASA2-AA6,196 Section 196. 102.82 (2) (ad) of the statutes is created to read:

AB50-ASA2-AA6,97,7 102.82 (2) (ad) Except as provided in pars. (ag), (am), and (ar), for a 4th or subsequent determination by the department that an employer was uninsured, an uninsured employer shall pay to the department the greater of the following:

AB50-ASA2-AA6,97,11 1. Four times the amount determined by the department to equal what the uninsured employer would have paid during periods of illegal nonpayment for worker’s compensation in the preceding 3-year period, based on the employer’s payroll in the preceding 3 years.

AB50-ASA2-AA6,97,12 2. Four thousand dollars.

AB50-ASA2-AA6,197 Section 197. 102.82 (2) (am) of the statutes is amended to read:

AB50-ASA2-AA6,97,17 102.82 (2) (am) The department may waive any payment owed under par. (a), (ab), or (ad) by an uninsured employer if the department determines that the uninsured employer is subject to this chapter only because the uninsured employer has elected to become subject to this chapter under s. 102.05 (2) or 102.28 (2).

AB50-ASA2-AA6,198 Section 198. 102.82 (2) (ar) of the statutes is amended to read:

AB50-ASA2-AA6,98,2 102.82 (2) (ar) The department may waive any payment owed under par. (a), (ab), (ad), or (ag) or sub. (1) if the department determines that the sole reason for the uninsured employer’s failure to comply with s. 102.28 (2) is that the uninsured employer was a victim of fraud, misrepresentation or gross negligence by an insurance agent or insurance broker or by a person whom a reasonable person would believe is an insurance agent or insurance broker.

AB50-ASA2-AA6,199 Section 199. 102.85 (1) of the statutes is repealed and recreated to read:

AB50-ASA2-AA6,98,7 102.85 (1) (a) If an employer has failed to comply with s. 102.16 (3) or 102.28 (2), the employer shall, for a first violation, forfeit the greater of $1,000 or the amount of the premium that would have been payable for each time the employer failed to comply with s. 102.16 (3) or 102.28 (2).

AB50-ASA2-AA6,98,11 (b) If an employer has failed to comply with s. 102.16 (3) or 102.28 (2), the employer shall, for a 2nd violation, forfeit the greater of $2,000 or 2 times the amount of the premium that would have been payable for each time the employer failed to comply with s. 102.16 (3) or 102.28 (2).

AB50-ASA2-AA6,98,15 (c) If an employer has failed to comply with s. 102.16 (3) or 102.28 (2), the employer shall, for a 3rd violation, forfeit the greater of $3,000 or 3 times the amount of the premium that would have been payable for each time the employer failed to comply with s. 102.16 (3) or 102.28 (2).

AB50-ASA2-AA6,98,19 (d) If an employer has failed to comply with s. 102.16 (3) or 102.28 (2), the employer shall, for a 4th or subsequent violation, forfeit the greater of $4,000 or 4 times the amount of the premium that would have been payable for each time the employer failed to comply with s. 102.16 (3) or 102.28 (2).

AB50-ASA2-AA6,200 Section 200. 102.85 (2) of the statutes is repealed and recreated to read:

AB50-ASA2-AA6,99,2 102.85 (2) (a) No employer who is required to provide worker’s compensation insurance coverage under this chapter may give false information about the coverage to his or her employees, the department, or any other person who contracts with the employer and who requests evidence of worker’s compensation in relation to that contract.

AB50-ASA2-AA6,99,5 (b) No employer who is required to provide worker’s compensation insurance coverage under this chapter may fail to notify a person who contracts with the employer that the coverage has been canceled in relation to that contract.

AB50-ASA2-AA6,99,7 (c) 1. An employer who violates par. (a) or (b) shall, except as provided in subds. 2. and 3., forfeit not less than $100 and not more than $1,000.

AB50-ASA2-AA6,99,9 2. An employer who violates par. (a) or (b) shall forfeit $3,000 for a 3rd violation of par. (a) or (b).

AB50-ASA2-AA6,99,11 3. An employer who violates par. (a) or (b) shall forfeit $4,000 for a 4th violation of par. (a) or (b).

AB50-ASA2-AA6,201 Section 201. 103.06 (1) (b) (intro.) of the statutes is amended to read:

AB50-ASA2-AA6,99,15 103.06 (1) (b) (intro.) “Employee” means, for purposes of compliance with the requirements specified in sub. (3) (a), any of the following who is employed by an employer:

AB50-ASA2-AA6,202 Section 202. 103.06 (1) (c) (intro.) of the statutes is amended to read:

AB50-ASA2-AA6,99,19 103.06 (1) (c) (intro.) “Employer” means, for purposes of compliance with the requirements specified in sub. (3) (a), any of the following that is engaged in the work described in s. 108.18 (2) (c):

AB50-ASA2-AA6,203 Section 203. 103.06 (2) of the statutes is renumbered 103.06 (10), and 103.06 (10) (intro.) and (a), as renumbered, are amended to read:

AB50-ASA2-AA6,99,23 103.06 (10) Worker classification compliance; duties of department. (intro.) For purposes of promoting and achieving compliance by employers with the laws specified in sub. (3) (a) through the proper classification of persons performing services for an employer as employees and nonemployees, the The department shall do all of the following:

AB50-ASA2-AA6,100,10 (a) Educate employers, employees, nonemployees, and the public about the proper classification of persons performing services for an employer as employees and nonemployees. 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.

AB50-ASA2-AA6,204 Section 204. 103.06 (10) (f) of the statutes is created to read:

AB50-ASA2-AA6,100,15 103.06 (10) (f) Design and make available to employers a notice regarding worker classification laws, requirements for employers and employees, and penalties for noncompliance. The department shall promulgate rules to implement this paragraph.

AB50-ASA2-AA6,205 Section 205. 103.06 (11) of the statutes is created to read:

AB50-ASA2-AA6,100,20 103.06 (11) Notice. All employers shall post, in one or more conspicuous places where notices to employees are customarily posted, the notice designed by the department under sub. (10) (f). Any employer who violates this subsection shall forfeit not more than $100 for each offense.

AB50-ASA2-AA6,206 Section 206. 108.221 (1) (a) of the statutes is renumbered 108.221 (1) (a) (intro.) and amended to read:

AB50-ASA2-AA6,101,5 108.221 (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:

AB50-ASA2-AA6,101,9 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.

AB50-ASA2-AA6,207 Section 207. 108.221 (1) (a) 2. of the statutes is created to read:

AB50-ASA2-AA6,101,13 108.221 (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.

AB50-ASA2-AA6,208 Section 208. 108.221 (2) of the statutes is renumbered 108.221 (2) (intro.) and amended to read:

AB50-ASA2-AA6,101,19 108.221 (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:

AB50-ASA2-AA6,101,22 (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.

AB50-ASA2-AA6,209 Section 209. 108.221 (2) (b) of the statutes is created to read:

AB50-ASA2-AA6,102,3 108.221 (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.

AB50-ASA2-AA6,210 Section 210. 108.24 (2m) of the statutes is amended to read:

AB50-ASA2-AA6,102,16 108.24 (2m) Any employer described in s. 108.18 (2) (c) or engaged in the painting or drywall finishing of buildings or other structures who, after having previously been assessed an administrative penalty by the department under s. 108.221 (1), 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 be fined $1,000 for each employee who is misclassified, subject to a maximum fine of $25,000 for each violation. The department may, regardless of whether an employer has been subject to any administrative assessment under s. 108.221 or any other penalty or assessment under this chapter, refer violations of this subsection for prosecution by the department of justice or the district attorney for the county in which the violation occurred.

AB50-ASA2-AA6,211 Section 211. 182.01 (8) of the statutes is created to read:

AB50-ASA2-AA6,102,20 182.01 (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:

AB50-ASA2-AA6,102,21 (a) Articles of incorporation under s. 180.0202 or 181.0202.

AB50-ASA2-AA6,102,22 (b) Articles of organization under s. 183.0201.

AB50-ASA2-AA6,102,23 (c) A statement of qualification under s. 178.0901.

AB50-ASA2-AA6,103,1 (d) A certificate of limited partnership under s. 179.0201.

AB50-ASA2-AA6,212 Section 212. 943.395 (1) (e) of the statutes is created to read:

AB50-ASA2-AA6,103,5 943.395 (1) (e) Presents an application for worker’s compensation insurance coverage that is false or fraudulent or that falsely or fraudulently misclassifies employees to lower worker’s compensation insurance premiums.

AB50-ASA2-AA6,9250 Section 9250. Fiscal changes; Workforce Development.

AB50-ASA2-AA6,103,15 (1) Employee misclassification. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (v), the dollar amount for fiscal year 2025-26 is increased by $445,700 to increase the authorized FTE positions for the department of workforce development by 3.0 SEG positions to conduct additional audits and investigations to identify and resolve unlawful employment classification practices. In the schedule under s. 20.005 (3) for the appropriation to the department of workforce development under s. 20.445 (1) (v), the dollar amount for fiscal year 2026-27 is increased by $445,700 to provide funding for the positions authorized under this subsection.

AB50-ASA2-AA6,9350 Section 9350. Initial applicability; Workforce Development.