The Oklahoma House of Representatives has passed a bill that would make it more difficult for employers to misclassify workers as independent contractors for the purpose of avoiding social security, unemployment or workers’ compensation premium costs.
HB 2258, by Rep. Ben Sherrer, D-Chouteau, would require that the Oklahoma Tax Commission, the Oklahoma Workers’ Compensation Court, the Oklahoma Department of Labor and the Oklahoma Employment Security Commission share information through a secure database with the intent of detecting employers who intentionally misclassify workers.
According to Rep. Sherrer, the Central South Carpenters Regional Council asked him to introduce the bill. Gary Warren, who serves as the political director for the council, said the issue is wide spread especially in the construction industry.
Misclassification means that employers who cut corners at the expense of their workers are able to underbid employers who follow the law, said Warren.
“Legitimate contractors can be underbid on labor costs by up to 30 percent on projects simply because they’re following the law and their competitor is not,” said Warren.
The bill passed the House, 94-0, and now advances on to the Senate for further consideration.
Source: Oklahoma House of Representatives
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