IN HB1120

Establishes that individuals performing construction services for contractors are presumed to be employees unless they meet specific criteria for independent contractor status, such as being free from control, operating an independently established business, or being a legitimate sole proprietor/partnership meeting 12 detailed requirements

Authorizes the Department of Labor to investigate employee misclassification complaints, conduct random inspections, and issue cease and desist orders; imposes escalating civil penalties ranging from $500 to $5,000 per misclassified employee depending on the number of violations and employees affected

Requires contractors and subcontractors to maintain detailed records for all individuals performing services, including contact information, hours worked, payment records, contracts, and tax documents

Bars contractors or subcontractors found to have committed recurring misclassification violations from receiving public works contracts for four years after being placed on a department-maintained list posted on its website

Increases the independent contractor certificate of exemption filing fee from $5 to $25 and requires coordination among the Department of Labor, Department of Revenue, Department of Workforce Development, and Worker's Compensation Board through a joint computer system for sharing confidential misclassification information