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PA SB72

PA SB72
Further providing for definitions, for improper classification of employees and for criminal penalties; providing for private right of action; and further providing for administrative penalties, for retaliation for action prohibited, for availability of information, for use of penalty funds and for funding.


summary

Introduced
05/22/2025
In Committee
05/22/2025
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 definitions, for improper classification of employees and for criminal penalties; providing for private right of action; and further providing for administrative penalties, for retaliation for action prohibited, for availability of information, for use of penalty funds and for funding.

AI Summary

This bill amends the Construction Workplace Misclassification Act to strengthen protections for workers and penalties for employers who improperly classify employees in the construction industry. The bill introduces several key changes, including expanding the definition of "debar" to more comprehensively prevent repeated violations, reducing the response time for employers served with an order to show cause from 20 to 10 days, and establishing a graduated criminal penalty system based on the number of prior offenses. Notably, the bill creates a new private right of action for employees who have been misclassified, allowing them to sue for reinstatement, up to three times their lost wages, attorney fees, and other appropriate relief within three years of discovering a violation. The bill also modifies administrative penalties, mandating that the secretary assess penalties for violations and potentially order financial audits, with mandatory debarment for intentional violations. Additionally, the bill strengthens protections against retaliation, explicitly prohibiting employers from discriminating against employees who participate in investigations or report violations. The bill also changes how penalty funds are collected and used, now directing all collected penalties into a restricted revenue account for future enforcement of the act. The legislation aims to combat worker misclassification in the construction industry by providing more robust legal mechanisms and deterrents against improper employment practices.

Committee Categories

Labor and Employment

Sponsors (14)

Last Action

Laid on the table (Pursuant to Senate Rule 9) (on 08/12/2025)

bill text


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