Requires all on-site construction labor for state contracts be W-2 employees

HB 3507 requires all construction workers performing on-site labor for state government projects to be direct employees of the contracting company (W-2 employees), not independent contractors. This directly affects state contractors and construction firms bidding on government projects, mandating they hire workers as employees rather than using independent contractors for roles like laborers, mechanics, or operators. The bill prohibits contractors from using independent contractors for any on-site construction work covered by state contracts. The bill was introduced on February 26, 2026, and is currently in early committee stages.