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AB1160: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6540/1
JK:skw
2025 ASSEMBLY BILL 1160
March 13, 2026 - Introduced by Representative
Sinicki
. Referred to Committee on Workforce Development, Labor, and Integrated Employment.
AB1160,1,3
1
An Act
to repeal
71.63 (3) (d) and 71.65 (6);
to create
71.83 (1) (a) 1n. and
2
71.83 (1) (b) 3m. of the statutes;
relating to:
misclassification of employees
3
and providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, any employer who willfully provides false information to the Department of Revenue or who willfully and with intent to evade any requirement of the state income tax law misclassifies or attempts to misclassify an individual who is an employee of the employer as a nonemployee is subject to a $25,000 penalty for each such violation. For purposes of imposing the penalty, “employer” means a person engaged in the construction of roads, bridges, highways, sewers, water mains, utilities, public buildings, factories, housing, or similar construction projects or a person engaged in the painting or drywall finishing of buildings or other structures.
This bill provides that if an employer misclassifies an individual who is an employee of the employer as a nonemployee, the employer may be subject to a penalty of $500 for each such violation, if DOR shows that the employer’s action or inaction was due to the employer’s willful neglect and not to reasonable cause. Under the bill, if DOR finds that an employer has had three or more cases of negligent misclassification of employees as nonemployees in a five-year period, the third negligent misclassification and any subsequent findings of negligent misclassification are treated as intentional misclassifications unless the employer proves by a preponderance of the evidence that the employer did not intentionally misclassify employees as nonemployees.
Under the bill, if an employer intentionally provides false information to DOR or with the intent to evade any requirement of the state income tax law misclassifies or attempts to misclassify an individual who is an employee of the employer as a nonemployee, the employer may be subject to a penalty of $25,000 for each such violation.
For purposes of imposing the penalties under the bill, the term “employer” is not limited to only construction contractors and persons engaged in the painting or drywall finishing of buildings or other structures, but applies to all employers.
Under the bill, DOR may disclose on its website a list of persons who, after all appeal rights have expired, have been subject to a penalty for providing false information to DOR or who have intentionally misclassified or attempted to misclassify employees as nonemployees during any seven-year period. The disclosure is limited to the name and address of each person and the date that each penalty was imposed on the person during the seven-year period.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB1160,1
1
Section
1
.
71.63 (3) (d) of the statutes is repealed.
AB1160,2
2
Section
2
.
71.65 (6) of the statutes is repealed.
AB1160,3
3
Section
3
.
71.83 (1) (a) 1n. of the statutes is created to read:
AB1160,3,2
4
71.83
(1)
(a) 1n. ‘Negligent misclassification of an employee.’ If an employer
5
misclassifies an individual who is an employee of the employer as a nonemployee,
6
the employer may be subject to a penalty equal to $500 for each such violation. The
7
department shall waive the penalty except upon a showing by the department
8
under s. 73.16 (4). If the department finds that an employer has had 3 or more
9
cases of negligent misclassification of employees as nonemployees in a 5-year
10
period, the 3rd negligent misclassification and any subsequent findings of negligent
11
misclassification shall be treated as intentional misclassifications under par. (b)
12
3m. unless the employer proves to the department by a preponderance of the
1
evidence that the employer did not intentionally misclassify employees as
2
nonemployees.
AB1160,4
3
Section
4
.
71.83 (1) (b) 3m. of the statutes is created to read:
AB1160,3,14
4
71.83
(1)
(b) 3m. ‘Intentional misclassification of an employee; providing false
5
information.’ If an employer intentionally provides false information to the
6
department or with the intent to evade any requirement of this chapter
7
misclassifies or attempts to misclassify an individual who is an employee of the
8
employer as a nonemployee, the employer may be subject to a penalty equal to
9
$25,000 for each such violation. Notwithstanding s. 71.78 (1), the department may
10
disclose on the department’s website a list of persons who, after all appeal rights
11
have expired, have been subject to a penalty under this subdivision during any 7-
12
year period, except that the information provided on the website shall be limited to
13
the name and address of each person and the date that each penalty was imposed
14
on the person during that period.
AB1160,3,15
15
(end)
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