Bicameral legislation has been introduced cracking down on payroll fraud and other related business practices. The proposal aims to strengthen whistleblower protections, toughen penalties against payroll fraud, and reimburse back-wages and benefits owed to employees. According to the press release, payroll fraud costs Michigan taxpayers $107 million a year in tax revenue when businesses misclassify workers as independent contractors or pay them off the books.
The legislation follows the establishment of a special payroll fraud enforcement unit within the Attorney General’s office, which was established in April by Attorney General Dana Nessel.
The Senate bills were referred to the Senate Government Operations Committee for consideration. The House bills were referred to the House Commerce and Tourism Committee for consideration.
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