Pennsylvania HB 678: An Act providing for the registration of labor brokers; imposing duties on the Department of Labor and Industry and the Secretary of Labor and Industry; establishing the Labor Broker Registration Account; and imposing penalties.

Bill Text

PRIOR PRINTER'S NO. 692 PRINTER'S NO. 3057
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 678
Session of
2025
INTRODUCED BY McNEILL, FREEMAN, HILL-EVANS, WAXMAN, GIRAL,
PIELLI, SANCHEZ, DEASY, SCHLOSSBERG, NEILSON, MALAGARI AND
GREEN, FEBRUARY 20, 2025
AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 23, 2026
AN ACT
Providing for the registration of labor brokers; imposing duties
on the Department of Labor and Industry and the Secretary of
Labor and Industry; establishing the Labor Broker
Registration Account; and imposing penalties.
TABLE OF CONTENTS
Section 1. Short title.
Section 2. Definitions.
Section 3. Prohibition.
Section 4. Proof of registration.
Section 5. Verification system.
Section 6. Registration.
Section 7. Expiration and renewal.
Section 8. Certification of compliance.
Section 9. Reporting changes.
Section 10. Fees.
Section 11. Labor Broker Registration Account.
Section 12. Prohibited acts.
Section 13. Investigations.
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Section 14. Penalties.
Section 15. Suspension of registration.
Section 16. Other relief.
SECTION 17. EDUCATIONAL EFFORTS.
Section 17 18. Regulations.
Section 18 19. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Labor Broker
Registration Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." The Labor Broker Registration Account established
under section 11.
"Construction." Erection, reconstruction, demolition,
alteration, modification, custom fabrication, building,
assembling, site preparation and repair OR MAINTENANCE work done
on any real property or premises under contract, whether or not
the work is for a public body and paid for from public funds.
"CONTRACTOR." A PERSON THAT, IN ANY CAPACITY FOR
COMPENSATION, ENGAGES IN CONSTRUCTION. THE TERM INCLUDES A
SUBCONTRACTOR OF ANY TIER.
"Debar." As follows:
(1) Action taken by the secretary to prohibit a
contractor, subcontractor or person from contracting with or
participating in contracts for public work for a period of at
least three years.
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(2) The debarment shall include all divisions or other
organizational elements of a contractor or subcontractor
unless limited by its terms to specific divisions or
organizational elements.
(3) The debarment may apply to affiliates or other
persons or entities associated with the contractor,
subcontractor or individual if they are specifically named
and given written notice of the debarment and an opportunity
to appeal.
(4) The debarment shall apply to a successor entity. An
entity shall be a successor entity if it:
(i) has one or more of the same principals or
officers as the employer against whom the order was
issued;
(ii) performs similar work within the same
geographical area;
(iii) occupies the same premises;
(iv) shares the same telephone number or facsimile
number;
(v) has the same email address or Internet website;
(vi) employs substantially the same workforce or
administrative employees, or both;
(vii) utilizes the same tools, equipment or
facilities;
(viii) employs or engages the services of any person
or persons involved in the direction or control of the
other; or
(ix) lists substantially the same work experience.
"Department." The Department of Labor and Industry of the
Commonwealth.
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"Employee." As follows:
(1) An individual performing a service or labor for an
employer for wages, remuneration or other compensation.
(2) The term includes:
(i) In relation to workers' compensation, as the
term "employe" is defined in section 104 of the Workers'
Compensation Act.
(ii) In relation to unemployment compensation, as
the term "employe" is defined in section 4(i) of the
Unemployment Compensation Law.
"Employer." As follows:
(1) A person, including an agent of the person, that
engages the services of an employee for wages, remuneration
or other compensation.
(2) The term includes:
(i) In relation to workers' compensation, as the
term "employer" is defined in section 103 of the Workers'
Compensation Act.
(ii) In relation to unemployment compensation, as
the term "employer" is defined in section 4(j) of the
Unemployment Compensation Law.
"Labor broker." As follows:
(1) An entity or individual that supplies construction
workers to an employer OR CONTRACTOR for the performance of
construction work or for a construction project of the
employer OR CONTRACTOR on a site in this Commonwealth in
exchange for compensation from the employer OR CONTRACTOR,
provided that the completion of the project is directed by
the