Bill > HB721

This bill amends the Construction Workplace Misclassification Act to strengthen protections for workers and penalties for employers who improperly classify employees. The bill introduces several key changes, including expanding the definition of a "successor entity" to include businesses with similar characteristics to those found in violation of the act, which makes it harder for companies to evade penalties by restructuring. The legislation increases criminal penalties for misclassification, escalating from a misdemeanor to a felony for repeat offenders. A significant new provision is the private right of action, allowing employees who have been misclassified or suffered retaliation to sue their employers, with potential remedies including reinstatement, triple back wages, attorney fees, and other relief. The bill also enhances administrative penalties, allowing the secretary of labor to impose fines up to $1,000 for first violations and $2,500 for subsequent violations, and mandates debarment from public work projects for at least three years for intentional violations. Additionally, the bill strengthens protections against retaliation, prohibiting employers from discriminating against employees who participate in investigations or report violations, and requires employers to post information about worker rights in conspicuous locations. Penalty funds collected will now be deposited into a restricted revenue account dedicated to future enforcement of the act.

Budget and Finance, Labor and Employment

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=721