Key Findings

1. House Bill 1076 would not add any additional protections for employees and is costly and unnecessary legislation.

2. Employer liability insurance rates would increase as a result of the increased potential for lawsuits, even if they are frivolous.

3. Employers would see an increase in expensive nuisance lawsuits filed against them by disgruntled employees.

4. Employers would be less likely to hire independent contractors due to the risk of harassment litigation, thus hurting job opportunities for workers.

5. The independent contractor market would shrink if House Bill 1076 become law.

Introduction

HB 1076 would allow third parties, or “relators,” to bring lawsuits or so-called “qui tam actions” against employers on behalf of a government agency for a perceived violation of statutes that govern the employee workplace and the employer and employee relationship.

Unlike current law, it would allow individuals to bring public enforcement actions on behalf of the state.

It would also allow an independent contractor to bring a qui tam lawsuit against an employer for supposed misclassification of independent status when the independent contractor believes he should be classified as an employee.

Read the full Legislative Memo here.