TX HB1069

Construction work performed by individuals classified as independent contractors is excluded from the definition of "employment" for unemployment benefits purposes, meaning these workers would not be eligible for unemployment compensation

Contractors must properly classify each construction worker as either an employee or independent contractor according to Texas Workforce Commission rules, with administrative penalties of up to $100 per misclassified worker for first violations and up to $1,000 per worker for subsequent violations

A construction worker cannot be classified as an employee solely because the hiring party requires criminal background checks, drug screening, or specific licenses/certifications for the worker's employees

Contractors can avoid reporting workers as employees if they demonstrate the worker is an independent contractor and properly issue IRS Form 1099 documenting payments

The Texas Workforce Commission must publish complaint procedures on its website, notify governmental entities of contractor violations, and issue annual reports tracking complaints, investigations, and collected penalties related to worker misclassification