INDIANAPOLIS — State Senator David Niezgodski’s (D-South Bend) proposal, Senate Bill (SB) 289, was unanimously approved by the Senate Pensions and Labor Committee on Wednesday. This proposal seeks to gain understanding of the degree of worker misclassification in Indiana in order to protect working families and our state’s revenue streams.
When workers are categorized as independent contractors, rather than full time employees, employers evade paying certain taxes — costing the State of Indiana money. SB 289 would require multiple state departments to report on how many workers are improperly categorized and how much money the state has lost as a result of this issue.
“In Indiana, we need to promote fairness,” Sen. Niezgodski said. “The state is losing valuable money because of these misclassification practices. My bill provides a reporting mechanism that will help the legislature shine a light onto how far-reaching this problem could be.”
Misclassified workers are ineligible for overtime and basic labor protections afforded to employees, and often find themselves underpaid.
“I look forward to improving the experiences of our Hoosier workers,” Sen. Niezgodski said. “The passage of this bill out of committee is a great step towards putting an end to unfair labor practices and making sure Indiana isn’t losing out on necessary funds.”
SB 289 has received bipartisan support and is co-authored by State Senator Phil Boots (R-Crawfordsville). It will now move to the full Senate for further consideration.