The practice is well known: A labor broker supplies dozens of workers for a job site and claims to have workers’ comp insurance on all of them. When regulators discover that isn’t the case, and attempt to penalize the broker, they are usually too late: The labor broker has already closed that company and opened another, under a different name. That enables the broker to avoid fines and penalties for repeat offenses.

Not anymore in Tennessee!

Senate Bill 2189, passed by the Tennessee legislature recently, gives authorities a powerful tool to crack down on these lawbreakers. The law requires construction services providers to maintain workers' compensation insurance coverage. The law also imposes liability on a successor of that company in interest of a penalized construction services provider. That means when a labor broker closes a company found to be violating Tax Fraud law, those sanctions and penalties will FOLLOW that broker to his new company.

It’s a huge win for law-abiding contractors in Tennessee who protect workers properly. 

Read more about this law, here: http://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=SB2189

Learn more about the UBC’s efforts to fight Tax Fraud at https://stoptaxfraud.net/