BATON ROUGE, LA (WVUE) - The Louisiana House of Representatives rejected a bill aimed at stopping business owners from skirting the law.
FOX 8 showed how many businesses are misclassifying of their workers as independent contractors instead of employees.
That means they do not pay state or federal taxes, unemployment insurance or other withholdings for their workers.
It costs taxpayers hundreds of millions of dollars each year, but violators get little more than a slap on the wrist under current law.
Baton Rouge lawmaker Pat Smith tried to toughen penalties, but her bill died Thursday on the house floor.