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PA HB933

PA HB933
Further providing for improper classification of employees, for administrative penalties, for stop-work orders, for certain agreement prohibited and for use of penalty funds.


summary

Introduced
03/17/2025
In Committee
03/17/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of October 13, 2010 (P.L.506, No.72), entitled "An act providing for the criteria for independent contractors in the construction industry and for the powers and duties of the Department of Labor and Industry and the Secretary of Labor and Industry; and imposing penalties," further providing for improper classification of employees, for administrative penalties, for stop-work orders, for certain agreement prohibited and for use of penalty funds.

AI Summary

This bill amends the Construction Workplace Misclassification Act to strengthen enforcement and penalties related to employee classification in the construction industry. The bill expands the Department of Labor and Industry's investigative powers, allowing the secretary to more comprehensively investigate potential violations, including examining wages, inspecting worksites, copying records, and requiring statements from employers or workers. It increases administrative penalties for violations, doubling the fine amounts from $1,000 to $2,500 for first-time offenses and from $2,500 to $5,000 for subsequent violations. The bill also modifies provisions around stop-work orders, making it easier for the department to issue orders requiring cessation of construction work when employers intentionally misclassify workers. Additionally, the bill changes how penalty funds are distributed, now requiring equal division between various administrative funds and the department for enforcement costs. The bill expands potential liability for general contractors and other parties who contract with employers who misclassify employees, and introduces a mandatory three-year debarment from public contracts for intentional violations. These changes aim to more effectively prevent worker misclassification and protect workers' rights in the construction industry.

Committee Categories

Labor and Employment

Sponsors (22)

Last Action

Referred to Labor & Industry (on 03/17/2025)

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