Lawmakers mull bill on how contractors classify workers

The Nebraska Legislature’s Business and Labor Committee is reviewing a bill passed in the 2010 session dealing with the misclassification of employees by contractors.
The new law requires construction contractors to submit papers confirming each employee completed an I-9 form and is properly classified.
Nebraska Labor Commissioner Catherine Lang says tax staff of the state work with employers to make sure they are complying with the law.
Lang says there are four ways potential misclassifications would be discovered: referrals, site visits, examining blocked unemployment benefit claims and examining IRS 10-99 records.
Senator Steve Lathrop, chair of the Business and Labor Committee, wants to know how much tax revenue Nebraska may be missing out on.
Lathrop says they’ve looked at how Iowa handles the situation. He says Iowa saw a huge amount of money come in, in the millions of dollars, through the enforcement process — some of it from unemployment and some also from state withholding.
Labor Commissioner Lang says the initial annual report following the bill’s passage has been released and is available on the Nebraska Labor Department’s website.
Doug Kennedy, KWBE, Beatrice