Today the House Taxation Committee passed House Bill 2175 out of committee and onto the House floor for full consideration. This proposal would rescind the current Kansas worker misclassification law and will have a detrimental effect on law-abiding businesses and workers.
"This sends the message that the State of Kansas cares more about unscrupulous employers than working families," said Dillmore. By passing this bill we are telling everyone that the legislature is no longer concerned with the employment of illegal workers or evading taxes."
The current statute allows the Department of Revenue and the Department of Labor to share information about employers suspected of violating the law and also allows them to work together to perform necessary audits or investigations. This statute not only cracks down on unscrupulous employers who skirt the law, it has also resulted in a significant amount of recovered revenue from unpaid employment taxes from these employers. House Bill 2175 would effectively repeal the misclassification investigation program between the two departments.
"Eliminating the crime of worker misclassification is nonsensical," said Rep. Julie Menghini, D-Pittsburg, the ranking minority member on the House Taxation Committee. "It would not only allow unscrupulous employers to go unpunished for evading taxes, it would reward them by giving them a competitive edge. Additionally, repealing the misclassification law would eliminate $3 million in lost tax revenue from the FY 2010 budget, in a year when we already face a $1 billion deficit."
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