Wisconsin bill targets employers that skip comp coverage

A bill in Wisconsin would increase fines for employers that misclassify workers for lower workers compensation premiums or who forgo coverage altogether.

The current fine for for employers who fail to carry coverage is limited to $1,000 per violation for the first 10 days and no more than $100 for each subsequent day of such a violation. A.B. 462, introduced Friday, would raise that to $4,000 or up to four times the insurance premium that would have been payable, depending on how long the employer continues to operate without coverage.

The bill also would double the maximum penalty for misclassification of a worker. The current fine is $500 per misclassified employee, up to a maximum of $7,500 per incident. The bill would remove that limit and double the penalty for each act after the date of the first determination of a violation.

A.B. 462 also addresses administrative penalties against an employer who, “through coercion,” requires someone to adopt nonemployee status. The penalty is currently at $1,000 for each such person, up to a limit of $10,000 per calendar year. The bill removes that limit and again provides that the penalties double for each act occurring after the date of the first determination of a violation.