Wisconsin Assembly Bill 462 was introduced, which proposes an increase in fines for employers that misclassify workers for the purposes of lowering workers’ comp premiums or avoiding coverage.

The goal of this bill is to target worker misclassification and ensure that workers receive the benefits they are entitled to.

Currently, employers face a fine limited to $1,000 per worker classification violation for the first 10 days, followed by a daily fee no greater than $100 per violation. The bill proposes a $4,000 maximum fine or a maximum fine of four-times the insurance premium that should have been paid, based on how long coverage was not provided.

Furthermore, each misclassified employee currently results in a $500 fee, with a maximum fee of $7,500 per incident. The bill would remove the limit and double the penalty for each act after the date of the first violation.

The final part of the bill addresses the coercion of workers into non-employee status. Currently, there is a $1,000 fee for each such person, up to a $10,000 limit for the calendar year. The bill would remove that limit and would double the penalty for each act occurring after the date of the first violation.