On February 26, Associate Policy Director Karrington Anderson submitted written testimony before the Economic Matters Committee in support of HB 1096 – Fraud Prevention and Worker Protections – Prohibitions, Penalties, and Enforcement with amendments.
This bill aims to enhance worker protections by strengthening workplace fraud laws, expanding enforcement authority within the Office of the Attorney General, and increasing accountability for worker misclassification.
While MACo supports these goals, counties seek clarification to ensure that counties are not unfairly held liable for violations committed by third-party contractors or subcontractors when contracting or subcontracting services.
Local governments regularly engage in contracts for services essential to public operations. As currently written, HB 1096 does not explicitly exclude counties from potential liability if a contractor or subcontractor is found to have violated worker classification laws. This ambiguity could create unintended consequences where counties are unfairly penalized for actions beyond their direct control.
HB 1096’s cross-file, SB 938, was heard on March 5 in the Senate Finance Committee. Karrington Anderson testified in support of this bill with amendments.
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