85R6887 SMT-D     By: Lucio S.B. No. 592       A BILL TO BE ENTITLED   AN ACT   relating to the classification of workers for purposes of the Texas   Unemployment Compensation Act; providing a penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 201.041, Labor Code, is amended to read   as follows:          Sec. 201.041.  GENERAL DEFINITION OF EMPLOYMENT;   PRESUMPTION OF EMPLOYMENT. (a) In this subtitle, "employment"   means a service, including service in interstate commerce,   performed by an individual for wages or under an express or implied   contract of hire.          (b)  An individual performing a service for wages or under an   express or implied contract of hire is presumed to be an employee of   the person for whom the service is performed.          (c)  A presumption under Subsection (b) may be rebutted if   the person for whom the service is performed shows[, unless it is   shown] to the satisfaction of the commission that the individual's   performance of the service has been and will continue to be free   from control or direction under the contract and in fact.          SECTION 2.  Section 203.202, Labor Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  Notwithstanding Subsection (a), money credited to the   special administration fund from penalties assessed under Section   214.008(c-1) shall be used only to pay costs related to   identifying, investigating, and preventing worker   misclassification.          SECTION 3.  The heading to Section 214.008, Labor Code, is   amended to read as follows:          Sec. 214.008.  MISCLASSIFICATION OF [CERTAIN] WORKERS;   PENALTY.          SECTION 4.  Section 214.008, Labor Code, is amended by   adding Subsections (b-1) and (c-1) to read as follows:          (b-1)  A person, other than a person to whom Subsection (a)   or (b) applies, shall properly classify, as an employee or   independent contractor in accordance with Chapter 201, any   individual the person directly retains and compensates for the   performance of a service.          (c-1)  The commission may assess a penalty against a person   who fails to properly classify an individual as required by   Subsection (b-1), in an amount not to exceed $200 for each   individual that the person has not properly classified. The amount   of the penalty may be based on:                (1)  the seriousness of the violation, including the   nature, circumstances, extent, and gravity of any prohibited acts;                (2)  the history of previous violations;                (3)  the amount necessary to deter future violations;   or                (4)  efforts to correct the violation.          SECTION 5.  Section 214.008, Labor Code, as amended by this   Act, applies only to service performed by an individual on or after   the effective date of this Act.  Service performed by an individual   before the effective date of this Act is governed by the law in   effect on the date the service was performed, and the former law is   continued in effect for that purpose.          SECTION 6.  This Act takes effect September 1, 2017.