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An Indiana bill filed Monday would assume that the workers of general contractors or subcontractors performing government-support projects are employees for workers compensation and tax purposes.
S.B. 126 would amend state laws to establish a presumption that workers providing labor on government projects are employees unless the contractor or subcontractor can provide proof they are properly classified as an independent worker.
The projects covered by the bill include any tax-advantaged construction or construction paid out of public funds or a special assessment, such as the building of a government structure, bridge, sewer or similar public improvement.
The legislation would also require that the state’s departments of revenue, labor, workforce development and workers compensation report twice annually, beginning on Jan. 2, 2022, on any suspected improper classifications of contractors or subcontractors working on such projects.
The Indiana House of Representatives unanimously passed legislation Tuesday to modify several workers compensation timelines.