Bill > SB586

This bill, known as the Workplace Misclassification Act, establishes comprehensive criteria for determining whether a worker is an independent contractor or an employee in Pennsylvania, primarily focusing on industries outside of construction. The bill requires that independent contractors have a written, project-specific contract, be free from direction and control, and be genuinely engaged in an independently established business. To qualify as an independent contractor, individuals must possess their own tools, have the potential to profit or suffer loss from their work, operate through a business with a proprietary interest, maintain a separate business location, and either have previously performed similar services for others or market themselves as available for such services. The legislation introduces significant penalties for employers who misclassify workers, including administrative fines up to $2,500 per violation, potential criminal charges ranging from summary offenses to felonies, and the possibility of being debarred from public work contracts for at least three years. Additionally, the bill protects workers by allowing them to bring private legal actions if they are misclassified, with potential remedies including reinstatement, triple wage restitution, and attorney fees. The Department of Labor and Industry is tasked with enforcing these provisions, developing informational materials, and submitting annual reports to the General Assembly about the act's implementation.

Labor and Employment

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=586