HB 1065
AN ACT relating to the classification of employees of a company license
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Requires private security companies to correctly classify workers as employees or independent contractors when applying for or renewing a company license. The Texas Department of Public Safety must inspect employment records to ensure companies are not misclassifying workers in violation of federal guidelines. Companies found intentionally misclassifying employees as independent contractors will be prohibited from obtaining or maintaining their private security license.
Subject Areas
Bill Text
relating to the classification of employees of a company license holder under the Private Security Act. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter F, Chapter 1702, Occupations Code, is amended by adding Section 1702.116 to read as follows: Sec. 1702.116. VERIFICATION OF EMPLOYMENT CLASSIFICATION FOR COMPANY LICENSE ISSUANCE. Before the department may issue a company license under this chapter, the department must inspect the employment records of the applicant to confirm that the applicant has not misclassified employees as independent contractors in violation of applicable federal guidelines. SECTION 2. Section 1702.127, Occupations Code, is amended by adding Subsection (b-1) to read as follows: (b-1) A company license holder may not intentionally misclassify an employee as an independent contractor in violation of applicable federal guidelines. SECTION 3. Subchapter M, Chapter 1702, Occupations Code, is amended by adding Section 1702.3025 to read as follows: Sec. 1702.3025. VERIFICATION OF EMPLOYMENT CLASSIFICATION FOR COMPANY LICENSE RENEWAL. Before the department may renew a company license under this chapter, the department must inspect the employment records of the license holder to confirm that the license holder has not misclassified employees as independent contractors in violation of applicable federal guidelines. SECTION 4. Sections 1702.116 and 1702.3025, Occupations Code, as added by this Act, apply only to an application for the issuance or renewal of a company license under Chapter 1702, Occupations Code, that is submitted on or after the effective date of this Act. An application submitted before the effective date of this Act is governed by the law in effect on the date the application was submitted, and the former law is continued in SECTION 5. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to the classification of employees of a company license
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