Texas House Panel finds that worker misclassification “compromises free markets” and promotes “lawlessness”

Texas GOP VoteFrom Texas GOP Vote — this is a post that shares the findings the Texas House Business and Industry Committee.  While it is common for Democrats to support legislation that protects workers from being misclassified as independent contractors, it is less likely for Republicans to be involved in this issue.  Not in Texas.  The Texas GOP Vote site has been outspoken on the need to protect workers and protect the free market.  This post states:

“Preventing workers from being paid as employees denies them basic protections and costs taxpayers millions each year because employers are avoiding payroll taxes on that labor. Employers who follow the law are investing in a sustainable workforce, which is undermined by worker misclassification. Many of those ethical employers have urged lawmakers to do more to contain what they’ve called “a cancer” in the heart of the construction industry.

So, the Texas House Business and Industry Committee this past year took an in-depth look at the issue, including testimony from construction industry leaders, labor advocates and others who are united in combating misclassification.

The Democrats and Republicans on the committee recommended state government take important next steps to root out employers who cheat. “The 84th Texas Legislature should direct the Comptroller of Public Accounts, with the help of the Texas Workforce Commission, to thoroughly study the economic impact of misclassifying employees on markets, industries, and individuals, and report the findings with recommendations to the Legislature,” their report said.

“The economic incentives to classify a worker as an independent contractor are great, and studies show that a significant percentage of independent contractors are misclassified, and are actually employees,” the lawmakers said. “The impact of misclassification can undermine free markets, damage law abiding businesses, deprive employees of wages and other legal rights, and lessen governmental revenues, thus shifting the burden on to other taxpayers.”

“A misclassifying employer compromises free markets through unfair competition and promulgates lawlessness,” the report said…..”

Read the full story at Texas House Panel finds that worker misclassification “compromises free markets” and promotes “lawlessness” 

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