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Lee Signs Bill to Extend Misclassification Penalties to Successor Companies

Tuesday, June 23, 2020 | 296 | 0 | 34 min read

Tennessee Gov. Bill Lee has signed into law a bill that would make misclassification and premium fraud penalties apply to perpetrators' successor companies. Senate Bill 2189 took effect last week when the governor signed it. It makes Tennessee one of the few states to adopt what fraud watchers have said is a crucial step in stemming widespread illegal labor practices in the construction industry. For years, unscrupulous labor brokers and subcontractors have classified workers as independent contractors or have underreported their payroll, avoiding or lowering workers' comp p...

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