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.
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