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HB 1455

Labor, Department of; review and validate employment status of 1099 tax returns filed by employers on behalf of employees; establish a commission

2025-2026 Regular Session Introduced by Lisa Campbell and 5 co-sponsors

Georgia would establish a commission requiring the Department of Labor to review and validate employer-filed 1099 contractor classifications to prevent worker misclassification.

House Second Readers
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Bill Summary · HB 1455

Legislative bill overview

HB 1455 proposes that Georgia's Department of Labor review and validate 1099 tax returns filed by employers on behalf of employees, and establishes a commission to oversee this process. The bill addresses the classification of workers as independent contractors versus employees, which determines tax obligations and eligibility for employee protections.

Why is this important

Misclassification of employees as independent contractors (1099 workers) costs states significant tax revenue and denies workers access to unemployment insurance, workers' compensation, and minimum wage protections. This bill attempts to add state-level oversight to a classification process that is primarily regulated by federal tax law and could affect thousands of Georgia workers and employers.

Potential points of contention

  • Federal vs. state authority: The IRS, not state labor departments, has primary jurisdiction over 1099 classification under federal tax code; state-level validation may create conflicting standards and compliance confusion
  • Employer burden and compliance costs: New validation requirements could increase administrative costs for employers, particularly small businesses already managing complex tax filing obligations
  • Scope and enforceability: The bill's mechanism for "validation" is undefined—it's unclear what standards will be used, what penalties apply for violations, or how the state will handle disputes with federal tax determinations

Compiled from official sources — confirm details with the bill’s official record.

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