Lawmakers who are still gearing up for the real business of the 83rd Texas Legislature got an earful from construction executives from around the state on TCA’s lobby day. The Texas Construction Association’s members have several legislative priorities, including a fair solution to the problem of misclassification or payroll fraud.
Raymond Risk, CEO of the group, told Construction Citizen that they hope the legislature will address misclassification in a balanced way. He and others are encouraged by the fact that the Texas Workforce Commission voted to support legislation that would impose fines on payroll fraud committed on government contracts. There are some within the industry who think any new law should be broader than that. There are others who want to see no new regulations passed whatsoever.
Risk said many TCA members have complained that they’re being significantly underbid by unscrupulous companies that essentially pretend their employees are subcontractors – something they do intentionally to avoid payroll taxes. He pointed to the UT research unveiled last week that shows more than 40% of construction workers in Texas are misclassified.
“Those that don’t properly classify their workers are at a large advantage when they’re bidding if they don’t have to pay taxes for the people on their project,” Risk said. “We want to encourage them to comply with the law and maybe they need a little more stimulus to get them to do so.” Read more » about TCA: Our Lobby Day Was A Success