Misclassification Task Force Adopts Two Recommendations, Disbands

Tuesday, March 30, 2021 | 0

The Louisiana Misclassification of Employees Task Force adopted two recommendations but left 10 more pending as it disbanded last week, according to a report by the Louisiana Illuminator.

The task force recommended an educational outreach program for employers, employees and independent contractors. The panel also recommended requiring companies that file a Form 1099 with the Internal Revenue Service to also file the document with the state Department of Revenue.

Ten additional proposals are still pending and task force members have asked lawmakers to reassemble the group for another year to continue their work, the Illuminator reports.

One of the group’s recommendations is to eliminate warnings for first violations and implement a $500 fine that could be waived if the employer becomes compliant within 60 days.

House Bill 151, introduced ahead of the legislative session that starts April 12, would implement a fine of up to $5,000 for a first offense of misclassifying an employee as a contractor. The bill, by Rep. Neil Riser, R-Columbia, would increase penalties for subsequent offenses.

Task force materials can be viewed here.