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Michigan House Democrats announce payroll fraud prevention bills

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Democrats say fraud occurs when employers treat contract employees as regular staff without paying benefits or unemployment and other taxes. Democratic state Representative Terry Sabo says he’s doing everything in his power to get Republican support for the package.

“If these aren’t the right bills, then give us something that we can work with to try to—to get the problem resolved. Because, quite frankly, that is the end goal—is to find something that we can work with.”

Supporters say the bills would ban workers from misclassifying employees as independent contractors, strengthen whistleblower protections, and increase penalties for wage theft. Democrats have introduced similar bills in past legislative sessions without any luck.

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Colin Jackson is the Capitol reporter for the Michigan Public Radio Network.
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