Bill > HB1069

This bill clarifies the classification of construction workers and their eligibility for unemployment benefits by establishing new rules for how contractors must classify workers as either employees or independent contractors. The bill defines "construction" broadly to include work related to building, improving, repairing, and maintaining structures and property, and provides guidelines for when a worker can be considered an independent contractor. Specifically, contractors cannot be required to classify a worker as an employee solely because the hiring entity requires background checks, drug screening, or specific licenses. The bill also establishes administrative penalties for misclassification, with fines of up to $100 per improperly classified individual for a first violation and $1,000 for subsequent violations. The Texas Workforce Commission is required to provide a public website for reporting violations and to issue an annual report detailing complaints, investigations, and collected penalties. The law will apply to unemployment compensation claims filed on or after September 1, 2025, and will not retroactively affect claims filed before that date. The bill aims to provide clearer standards for worker classification in the construction industry while protecting both workers and contractors.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1069