Leaders in the construction industry told the Texas Workforce Commission (TWC) that the state needs to get tough on companies that cheat the system by misclassifying their employees. Construction Citizen has reported extensively on the problem, also known as payroll fraud, and now state leaders are starting to make moves toward correcting it.
During a hearing, Workforce Commissioner Ronny Congleton asked that the commission press the legislature to, in a general sense, crack down on misclassification. “We need to bring the rule of law to this enormous underground economy in Texas,” Congleton said. “We have to do something. Doing nothing drives honest employers out of the business because they cannot compete.”
Commissioner Tom Pauken said he couldn’t go that far. “This is a serious problem. I respect the idea behind the proposal. But, it’s so broad that it concerns me,” he said.
After raising that objection, Pauken was able to convince his fellow commissioners to join him in unanimously asking lawmakers to prohibit construction companies that win government contracts from misclassifying. The specific proposal has yet to take shape, but Pauken said current law could be tweaked Read more » about TWC Takes a Stand on Payroll Fraud After Business Leaders Call it a “Cancer”