Nebraska legislation that cracks down on employee misclassification was signed into law this week by the state's governor.

The Omaha World-Herald reported the new law takes aim at employers in the construction and delivery businesses that misclassify workers, and would fine employers $500 per day for the first misclassification, then $5,000 per day for each additional employee misclassified.

The Teamsters Union praised the law saying misclassification cost the state between $9 million and $18 million a year in additional tax revenue. The company said employers that misclassify workers can save up 30% in payroll costs and gain an unfair advantage.