Bill > S1018

This bill introduces new measures to combat tax and insurance fraud by empowering state officials to issue "stop work orders" to employers who fail to withhold taxes on wages or contribute to the Unemployment Compensation Fund. If an employer is found to be non-compliant, they will be required to cease all business operations until they pay all outstanding amounts and a daily civil penalty, which increases if the issue is not resolved after an initial hearing. The bill also outlines appeal processes for employers, allows law enforcement to assist in enforcing stop work orders, and mandates that employees affected by these orders be paid for up to ten days of lost work. Furthermore, it prevents businesses with outstanding tax or unemployment contribution issues from obtaining or renewing licenses and permits, and from entering into contracts for public work, with such contracts being voided if awarded to a non-compliant employer. The bill also introduces penalties for knowingly misclassifying employees to avoid taxes, including debarment from state and municipal contracts for three years, and allows businesses that lose bids due to such violations to sue for damages. Finally, it ensures that the Department of Revenue shares relevant employer information with labor departments to aid in enforcement.