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SALT LAKE CITY — Construction companies would be held more accountable for the way they treat workers under a bill under consideration in the Utah Legislature.
The Senate gave preliminary approval Friday to a bill that makes changes related to wages, worker's compensation, anti-discrimination policies, safety and unemployment compensation. SB35, sponsored by Sen. Karen Mayne, D-West Valley, also requires contractors to verify the legal status of its employees.
This is commerce with a conscience. This is the one that will change the way we do business.
–Sen. Karen Mayne, D-West Valley
"This is commerce with a conscience," she said. "This is the one that will change the way we do business."
Mayne said contractors have misclassified employees as owners to avoid paying Social Security taxes, workers' compensation and other benefits. She said she knows of one business that has 900 "owners" but only four are listed with the Department of Professional Licensing. "So, who's working?" she said.
The bill defines owners and employees. "If you own 20 percent of a company, you are an owner. If own 19 percent and below you are an employee," she said.
Sen. Curt Bramble, R-Provo, said his only problem with the bill is that it doesn't go far enough.
"There are still some bad actors out there flaunting the law," he said.
Those who violate the law would be subject to having their business licenses revoked.
The bill applies only to the construction trade but Mayne said she hopes it "morphs" into other industries as well.
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