2013 Legislative Session: Tackling Payroll Fraud in Texas

Texas became the focus of our Council’s Lobbying efforts in the 2013 Legislative Session.

The University of Texas performed a Study and determined that 41% of construction workers in Texas were misclassified as independent contractors. We worked with Legislators to help draft legislation that would place penalties on contractors who misclassify their workers.

The Council also hired Robert Howden who is a lobbyist in Texas to help with this important effort. Robert had previously worked for Governor Perry and he is well respected in the business community and at the Texas State Capitol.

We worked with legislators and helped them craft proposals that would have crack down on employers who knowingly misclassify construction workers as independent contractors.

Employers who cheat avoid paying payroll taxes, worker comp, unemployment insurance, and overtime.

The following legislators were strong proponents of this idea and they worked diligently on the misclassification legislation, and they are: St Representative Joseph Deshotel filed HB 372, St Representative John Davis filed HB 1925 and HB 2015, and St. Senator John Carona filed SB 676.

Our biggest opponent to all of these Bills listed above was the “Leading Builders of America” which represents some of the largest homebuilders in the country.

House Bill 2015 passed the Texas Legislature and Governor Perry signed the Bill into law. This was a big step for us in combating Payroll Fraud in Texas and will help our contractors to compete on an even playing field on government funded projects.