As with many labor & employment law related cases (and bills) being litigated around the country, there are always a few that stand out. This is one to keep an eye on.
A bill pending in the Louisiana Legislature would impose penalties up to $500/employee when a Louisiana employer willfully misclassifies an employee as an independent contractor as it relates to amounts owed for unemployment compensation contributions. The legislation, House Bill 151 (“HB 151”), would escalate the penalties on employers for subsequent offenses. Note, the law currently in place only imposes a warning on employers for the first offense.
While HB 151 does have some teeth, in regard to financial penalties, it does provide that the first offense penalty can be waived if the employer comes into compliance within 60 days.
HB 151 is currently pending on the floor of the Louisiana House of Representatives after clearing the Committee on Labor and Industrial Relations.
For additional information: http://www.legis.la.gov/legis/ViewDocument.aspx?d=1205052
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