AR HB2245

Requires contractors bidding on public construction contracts to classify workers as either employees or independent contractors based on specific criteria, including written contracts, control over services, and business independence.

Mandates contractors permit the Department of Labor to access employment records within 5 business days of request.

Imposes civil penalties for intentional failure to maintain records or allow inspection: up to $250 for first violation, $500 for second violation, and $100-$1,000 for each additional violation.

Requires investigation of misclassification of workers as independent contractors to avoid paying social security, unemployment, or workers' compensation; imposes same penalty schedule if intentional misclassification is found.

Provides Department of Labor authority to issue written warnings for unintentional violations and pursue legal action to recover penalties after providing notice, hearing opportunity, and final administrative order.