INDIANAPOLIS– On Wednesday, a proposal authored by State Senator David Niezgodski (D-South Bend) was unanimously approved by the Senate Pensions and Labor Committee.

Worker misclassification takes place when an employer classifies an employee as an independent contractor in order to pay less taxes. A 2008 study showed that 375,000 workers were misclassified in the State of Indiana. My proposal, Senate Bill (SB) 166, would call for a process of information gathering in which the Departments of Labor, Revenue, Workforce Development and the Workers Compensation Board will prepare reports on their findings over a three-year span.

“I am very encouraged by today’s unanimous vote in committee on this proposal,” Sen. Niezgodski said. “This bill simply calls for valuable information to be provided to legislators in order for them to have the resources available which will enable them to determine the true extent of worker misclassification in the State of Indiana and gives legislators the proper information to determine if further action is warranted.”

SB 166 now moves to the Senate floor where amendments can be made and voted upon in front of the whole body.