Workcompcentral reports that Tennessee has passed a bill that imposes misclassification penalties on a construction company’s successor. The new law states:
(1) For purposes of this subsection (d), “successor in interest” means a successor in ownership of all, or substantially all, of a business or enterprise that is carried on and controlled in substantially the same manner as the penalized construction services
(2) A successor in interest is liable for any penalty assessed under this section against a construction services
This law is intended to address the situation when a company is fined by state regulators, it would shut down and restart under another name.