Utah Senate Bill 35 is going after construction companies, requiring them to pay workers’ compensation and contribute to unemployment insurance and withholding taxes as long as their employees own less than 20 percent of the company. Employees who own 20 percent of the company would be classified as owners, for which companies do not have to pay workers’ compensation and unemployment insurance and taxes.
The concern is that some construction companies are declaring their employees as owners to avoid paying certain benefits, which then allows them to bid for projects at a lower price when competing against other construction companies, bill sponsor Sen. Karen Mayne, D-West Valley City, explained to the Salt Lake Tribune.
Was this article valuable?
Here are more articles you may enjoy.
Acrisure CEO Greg Williams Makes $400M Commitment to Michigan State University 
Dunkin’ Cashier in Georgia, Stabbed by Rapper, Can’t Claim More Than Workers’ Comp 
Owner of Historic Minnesota Resort Charged With Arson, Insurance Fraud 
Truckers Who Fail English Tests Are Pulled Off Roads in Crackdown 
