Bill Passes to Make Misclassification Penalties Follow to Successor Companies

The practice is well known in the world of commercial construction: A labor broker supplies dozens of workers to a job site, claiming to have workers' compensation insurance on all of them. When regulators discover the truth and attempt to penalize the broker, he has already reconstituted the company under another name, often avoiding fines and penalties for repeat offenses. A bill passed by the Tennessee legislature last week, now on the governor's desk, would give authorities a powerful tool to fight the deceptive practice. Senate Bill 2189 would make Tennessee one o...