Gov. Heineman (R-Ne) defied on worker measure

[Omaha Steve]

http://www.omaha.com/article/20100408/NEWS01/704089843#heineman-defied-on-worker-measure

Published Thursday April 8, 2010

By Paul Hammel

LINCOLN - Gov. Dave Heineman lobbied state lawmakers Wednesday to reject a bill seeking to end the practice of improperly classifying workers as “independent contractors” simply to avoid taxes.

In a letter, he said the bill might have “unintended consequences” for some delivery businesses.

But state lawmakers failed to blink, giving resounding voice-vote approval to the illegal immigration-related measure after second-round debate.

Omaha Sen. Steve Lathrop said he introduced Legislative Bill 563 to address the issue of employers misclassifying employees as independent contractors, which he said costs the state between $9 million and $18 million a year in state income taxes.

Lathrop said the practice was most prevalent in the drywall and carpentry trades, where unscrupulous contractors pay workers in cash rather than hire them as employees, with benefits.

That, he said, allowed them to lower their labor costs and undercut other bidders for jobs.

FULL story at link.

[WhiteTara]

1. think the gov will veto? n/t