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AB398-ASA1,6,2520 102.125 (3) Prosecution. If based on an investigation under sub. (1), (1m), or
21(2) the department has a reasonable basis to believe that a violation of s. 943.20,
22943.38, 943.39, 943.392, 943.395, 943.40, or any other criminal law has occurred, the
23department shall refer the results of the investigation to the department of justice
24or to the district attorney of the county in which the alleged violation occurred for
25prosecution.
AB398-ASA1,8
1Section 8. 102.85 (1) (a) of the statutes is amended to read:
AB398-ASA1,7,52 102.85 (1) (a) An For each act occurring before the date of the first
3determination of a violation of this subsection, an
employer who fails to comply with
4s. 102.16 (3) or 102.28 (2) for less than 11 days shall forfeit not less than $100 nor and
5not
more than $1,000.
AB398-ASA1,9 6Section 9 . 102.85 (1) (b) of the statutes is amended to read:
AB398-ASA1,7,117 102.85 (1) (b) An For each act occurring after the date of the first or second
8determination of a violation of this subsection, an
employer who fails to comply with
9s. 102.16 (3) or 102.28 (2) for more than 10 days shall forfeit not less than $10 nor and
10not
more than $100 for each day on which the employer fails to comply with s. 102.16
11(3) or 102.28 (2).
AB398-ASA1,10 12Section 10 . 102.85 (1) (c) of the statutes is created to read:
AB398-ASA1,7,1613 102.85 (1) (c) For each act occurring after the date of the 3rd determination of
14a violation of this subsection, the employer shall be assessed a penalty in the amount
15of $3,000 for each act, or 3 times the amount of the premium that would have been
16payable, whichever is greater.
AB398-ASA1,11 17Section 11 . 102.85 (1) (d) of the statutes is created to read:
AB398-ASA1,7,2118 102.85 (1) (d) For each act occurring after the date of the 4th determination of
19a violation of this subsection, the employer shall be assessed a penalty in the amount
20of $4,000 for each act, or 4 times the amount of the premium that would have been
21payable, whichever is greater.
AB398-ASA1,12 22Section 12 . 102.85 (2) (intro.) of the statutes is amended to read:
AB398-ASA1,8,223 102.85 (2) (intro.) An For each act occurring after the date of the first
24determination under this subsection, an
employer who is required to provide

1worker's compensation insurance coverage under this chapter shall forfeit not less
2than $100 nor and not more than $1,000 if the employer does any of the following:
AB398-ASA1,13 3Section 13 . 102.85 (2j) of the statutes is created to read:
AB398-ASA1,8,64 102.85 (2j) For each act occurring after the date of the 3rd determination under
5sub. (2), an employer who is required to provide worker's compensation insurance
6coverage under this chapter shall forfeit $3,000 per violation.
AB398-ASA1,14 7Section 14 . 102.85 (2k) of the statutes is created to read:
AB398-ASA1,8,108 102.85 (2k) For each act occurring after the date of the 4th determination
9under sub. (2), an employer who is required to provide worker's compensation
10insurance coverage under this chapter shall forfeit $4,000 per violation.
AB398-ASA1,15 11Section 15 . 103.005 (4m) of the statutes is created to read:
AB398-ASA1,8,1412 103.005 (4m) (a) The department shall design and make available to employers
13a notice regarding worker classification laws, requirements for employers and
14employees, and penalties for noncompliance.
AB398-ASA1,8,1815 (b) All employers shall post, in one or more conspicuous places where notices
16to employees are customarily posted, the notice designed by the department under
17par. (a). Any employer who violates this paragraph shall forfeit not more than $100
18for each offense.
AB398-ASA1,8,2219 (c) The department shall establish and maintain on the department's website
20information regarding worker classification laws, requirements for employers and
21employees, penalties for noncompliance, and contact information at each state
22agency that administers worker classification laws.
AB398-ASA1,16 23Section 16 . 108.221 (1) (a) of the statutes is renumbered 108.221 (1) (a) (intro.)
24and amended to read:
AB398-ASA1,9,6
1108.221 (1) (a) (intro.) Any employer described in s. 108.18 (2) (c) or engaged
2in the painting or drywall finishing of buildings or other structures
who knowingly
3and intentionally provides false information to the department for the purpose of
4misclassifying or attempting to misclassify an individual who is an employee of the
5employer as a nonemployee shall, for each incident, be assessed a penalty by the
6department as follows:
AB398-ASA1,9,9 71. For each act occurring before the date of the first determination of a violation
8of this subsection, the employer shall be assessed a penalty
in the amount of $500
9for each employee who is misclassified, but not to exceed $7,500 per incident.
AB398-ASA1,17 10Section 17 . 108.221 (1) (a) 2. of the statutes is created to read:
AB398-ASA1,9,1311 108.221 (1) (a) 2. For each act occurring after the date of the first determination
12of a violation of this subsection, the employer shall be assessed a penalty in the
13amount of $1,000 for each employee who is misclassified.
AB398-ASA1,18 14Section 18 . 108.221 (2) of the statutes is renumbered 108.221 (2) (intro.) and
15amended to read:
AB398-ASA1,9,1916 108.221 (2) (intro.) Any employer described in s. 108.18 (2) (c) or engaged in the
17painting or drywall finishing of buildings or other structures
who, through coercion,
18requires an individual to adopt the status of a nonemployee shall be assessed a
19penalty by the department as follows:
AB398-ASA1,9,22 20(a) For each act occurring before the date of the first determination of a
21violation of this subsection, the employer shall be assessed a penalty
in the amount
22of $1,000 for each individual so coerced, but not to exceed $10,000 per calendar year.
AB398-ASA1,19 23Section 19 . 108.221 (2) (b) of the statutes is created to read:
AB398-ASA1,10,3
1108.221 (2) (b) For each act occurring after the date of the first determination
2of a violation of this subsection, the employer shall be assessed a penalty in the
3amount of $2,000 for each individual so coerced.
AB398-ASA1,20 4Section 20 . 182.01 (8) of the statutes is created to read:
AB398-ASA1,10,75 182.01 (8) Information to be provided with business formation filings. The
6department shall provide informational materials and resources on worker
7misclassification to each person who files with the department any of the following:
AB398-ASA1,10,88 (a) Articles of incorporation under s. 180.0202 or 181.0202.
AB398-ASA1,10,99 (b) Articles of organization under s. 183.0201.
AB398-ASA1,10,1010 (c) A statement of qualification under s. 178.0901.
AB398-ASA1,10,1111 (d) A certificate of limited partnership under s. 179.0201.
AB398-ASA1,21 12Section 21 . 601.41 (13) of the statutes is created to read:
AB398-ASA1,10,1713 601.41 (13) Employee misclassification outreach and education. The
14commissioner shall, on at least an annual basis, conduct outreach and education to
15persons subject to regulation under chs. 600 to 655 on how to identify the
16misclassification of employees as independent contractors and how to report
17suspected misclassifications to the appropriate federal and state agencies.
AB398-ASA1,22 18Section 22 . 943.395 (1) (e) of the statutes is created to read:
AB398-ASA1,10,2119 943.395 (1) (e) Presents an application for worker's compensation insurance
20coverage that is false or fraudulent or that falsely or fraudulently misclassifies
21employees to lower worker's compensation insurance premiums.
AB398-ASA1,23 22Section 23 . Nonstatutory provisions.
AB398-ASA1,10,2423 (1) Investigation and enforcement of worker classification. The department
24of workforce development shall do all of the following before December 31, 2024:
AB398-ASA1,11,5
1(a) Require the unemployment insurance division, in coordination with the
2division of personnel management in the department of administration, to review all
3recruitment and onboarding programs to ensure that auditor positions are correctly
4classified and the compensation for auditors is comparable to that in the private
5labor market.
AB398-ASA1,11,86 (b) Review resources available to investigators and auditors and evaluate
7potential strategies and improvements that could be implemented, including at least
8all of the following:
AB398-ASA1,11,9 91. Cross-training all investigators and auditors working in the department.
AB398-ASA1,11,10 102. Adding bilingual staff.
AB398-ASA1,11,12 113. Information technology improvements for more efficient exchange of
12information.
AB398-ASA1,11,1713 (2) Reporting. By no later than January 31, 2025, the department of workforce
14development shall submit a report to the chief clerk of each house of the legislature
15for distribution to the standing committees of the legislature under s. 13.172 (3) with
16jurisdiction over workforce development. The report shall include the findings of the
17department under sub. (1) (a) and (b).
AB398-ASA1,24 18Section 24 . Fiscal changes.
AB398-ASA1,12,219 (1) Investigation and enforcement of worker classification. In the schedule
20under s. 20.005 (3) for the appropriation to the department of workforce development
21under s. 20.445 (1) (gc), the dollar amount for fiscal year 2023-24 is increased by
22$157,500 to increase the authorized FTE positions for the department by 3.0 PR
23positions for the purpose of investigating and enforcing worker classification laws
24and rules. In the schedule under s. 20.005 (3) for the appropriation to the department

1of workforce development under s. 20.445 (1) (gc), the dollar amount for fiscal year
22024-25 is increased by $210,000 for the positions authorized under this subsection.
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