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January 2024 NCSEA CSQ

Quarterly newsletter containing articles and news of interest for professionals working in the IV-D child support program.

Quarterly newsletter containing articles and news of interest for professionals working in the IV-D child support program.

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Texas Succeeds in Extending New Hire<br />

Reporting Requirements to Rideshare Drivers<br />

by Joel Rogers, Associate Deputy Attorney General for Child<br />

Support Legal Services, Texas Office of the Attorney General<br />

In 2021, the Texas Legislature passed House Bill (HB) 458, which<br />

specifically clarified that rideshare companies operating in Texas must<br />

comply with the state’s new hire reporting requirements for their<br />

independent contractor drivers. Upon enactment by the Governor, this<br />

legislation, combined with collaboration among the Texas Title IV-D agency,<br />

the Office of the Attorney General – Child Support Division (OAG-CSD),<br />

and one major rideshare company, has generated millions of dollars in new<br />

child support collections through income withholding for Texas families.<br />

As a bit of background, Texas law has historically defined compensation<br />

paid to independent contractors as “earnings” and specified that “earnings”<br />

are the basis of guideline child support calculations and are subject to<br />

income withholding for child support. However, the term “earnings” was not<br />

used in the state’s statutes related to new hire reporting requirements,<br />

which just referred to traditional employment terms like “employer” and<br />

“employee.”<br />

In 2015, the Texas Legislature attempted to address this issue by<br />

expanding the definition of “employee” in the new hire reporting laws to<br />

include “individuals hired as independent contractors.” However, other<br />

language in the state’s new hire reporting statutes still utilized terms like<br />

“employer,” “newly hired,” and “rehired,” which still seemed to apply

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