Texas House Votes Down Workers Misclassification Bill

HB 3656 would equip the Texas Workforce Commission with additional tools to address widespread worker misclassification in the Texas construction industry

Payroll fraud in the Texas construction industry costs the state $1.2 billion a year in lost federal income, payroll, and unemployment tax revenues

AUSTIN, TX – Today the Texas House voted down HB 3656 on a 66-76 vote. This bill would prohibit payroll fraud in both the private and public construction sectors and allow the Texas Workforce Commission to assess penalties against construction employers found to commit payroll fraud. 

“Misclassification is bad for workers, bad for businesses, and bad for the state of Texas,” said co-Founder and co-Executive Director for Workers Defense Emily Timm. “The construction industry is plagued with misclassification and HB 3656 would have been a significant win for construction workers and employers across Texas.”

“The House is currently considering other harmful legislation to construction workers and their families. HB 3656 would have been a moment of hope for our communities and it’s disappointing that holding bad actors in the construction industry accountable became such a partisan issue. Construction workers and high road construction employers deserve better and we thank Chairman Turner and other allies who championed this bill this Session.” 


Workers Defense Action Fund is a statewide organization dedicated to building power for low-wage workers, people of color, and immigrants and across Texas to win fair employment conditions and a better quality of life for working families through legislative advocacy, voter education, and voter engagement.

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