Sec. 4. Misclassification of employees for unemployment compensation purposes
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/bill/113/s/1687/is/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 303(a) of the Social Security Act ( 42 U.S.C. 503(a) ) is amended— in paragraph (11)(B), by striking the period and inserting ; and ; in paragraph (12), by striking the period and inserting ; and ; and by adding after paragraph
(12)the following: Such auditing and investigative procedures as may be necessary to identify employers that have not registered under the State law or that are paying unreported wages, where these actions or omissions by the employers have the effect of excluding employees from unemployment compensation coverage; and the making of quarterly reports to the Secretary of Labor (in such form as the Secretary of Labor may require) describing the results of the procedures under subparagraph (A); and the establishment of administrative penalties for misclassifying employees, or paying unreported wages to employees without proper recordkeeping, for unemployment compensation purposes. . The Secretary of Labor shall include, in the Department of Labor's system for measuring the performance of States in conducting unemployment compensation tax audits, a specific measure of the effectiveness of States in identifying the underreporting of wages and the underpayment of unemployment compensation contributions (including the effectiveness of States in identifying instances of such underreporting or underpayments despite the absence of cancelled checks, original time sheets, or other similar documentation). Except as provided in paragraph (2), the amendments made by subsection
(a)shall take effect 12 months after the date of enactment of this Act. If the Secretary of Labor finds that legislation is necessary for the unemployment compensation law of a State to comply with the amendments made by subsection (a), such amendments shall not apply with respect to such law until the later of— the day after the close of the first regular session of the legislature of such State that begins after the date of enactment of this Act; or 12 months after the date of enactment of this Act. For purposes of this section, the term State has the meaning given the term in section 3306(j) of the Internal Revenue Code of 1986.
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Sec. 4
Misclassification of employees for unemployment compensation purposes
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