Pennsylvania HB 718: An Act amending the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law, further providing for definitions; providing for duty of department to report and for investigations; further providing for civil remedies and penalties, for liquidated damages and for criminal penalties; providing for employer liability; and establishing the Wage Enforcement Fund.

Bill Text

PRINTER'S NO. 737
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 718
Session of
2025
INTRODUCED BY KINKEAD, D. MILLER, SANCHEZ, WAXMAN, HILL-EVANS,
ISAACSON, FIEDLER, PROBST, PIELLI, McNEILL, SCHLOSSBERG,
KHAN, CERRATO, RABB, HADDOCK, NEILSON, HOWARD, GIRAL, OTTEN,
D. WILLIAMS, MAYES, HOHENSTEIN, DEASY, GREEN, FREEMAN, STEELE
AND KENYATTA, FEBRUARY 24, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 24, 2025
AN ACT
Amending the act of July 14, 1961 (P.L.637, No.329), entitled
"An act relating to the payment of wages or compensation for
labor or services; providing for regular pay days; conferring
powers and duties upon the Department of Labor and Industry,
including powers and duties with respect to the civil
collection of wages; providing civil and criminal penalties
for violations of the act; providing for their collection and
disposition and providing for additional civil damages,"
further providing for definitions; providing for duty of
department to report and for investigations; further
providing for civil remedies and penalties, for liquidated
damages and for criminal penalties; providing for employer
liability; and establishing the Wage Enforcement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "employer" in section 2.1 of
the act of July 14, 1961 (P.L.637, No.329), known as the Wage
Payment and Collection Law, is amended and the section is
amended by adding a definition to read:
Section 2.1. Definitions.--The following words and phrases
when used in this act shall have, unless the context clearly
indicates otherwise, the meanings given to them in this section:
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* * *
"Employer." [Includes every person, firm, partnership,
association, corporation, receiver or other officer of a court
of this Commonwealth and any agent or officer of any of the
above-mentioned classes employing any person in this
Commonwealth.] Any of the following classes employing a person
in this Commonwealth:
(1) The Commonwealth.
(2) A political subdivision of the Commonwealth.
(3) An authority created by the General Assembly.
(4) An instrumentality or agency of the Commonwealth.
(5) Every person, firm, partnership, association,
corporation, receiver or other officer of a court of this
Commonwealth.
(6) An agent or officer of any of the above-mentioned
classes specified under paragraph (1), (2), (3), (4) or (5).
* * *
"High-violation industry." An industry that incurs at least
25 violations over a two-year period.
* * *
Section 2. The act is amended by adding sections to read:
Section 8.1. Duty of Department to Report.--(a) The
department shall collect on a quarterly basis the following data
categorized by industry:
(1) The number of violations.
(2) The amount of fines collected.
(3) The nature of violations.
(4) The number of individual complaints filed.
(5) The number of complaints resolved.
(6) The amount of unpaid wages owed.
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(7) The amount of unpaid wages recovered.
(8) The number of pending individual complaints.
(9) The number of workplaces investigated from complaints.
(10) The number of workplaces investigated proactively.
(11) The number of workplaces reinvestigated following
violations.
(12) The number of subsequent violations.
(b) On a semiannual basis, the department shall prepare and
submit a report of the data specified under subsection (a) to
the chairperson of the Labor and Industry Committee of the
Senate and the chairperson of the Labor and Industry Committee
of the House of Representatives.
(c) The department shall post each report under subsection
(b) on the publicly accessible Internet website of the
department.
Section 8.2. Investigations.--The secretary shall:
(1) Investigate high-violation industries no less than
quarterly.
(2) Train investigators to recognize basic labor, health and
safety violations.
(3) Engage in cross-agency referrals to protect workers'
rights.
Section 3. Section 9.1(c) of the act is amended and the
section is amended by adding a subsection to read:
Section 9.1. Civil Remedies and Penalties.--* * *
(c) The employe or group of employes, labor organization or
party to whom any type of wages is payable may, in the
alternative, inform the secretary of the wage claim against an
employer or former employer, and the secretary shall, unless the
claim appears to be frivolous, immediately notify the employer
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or former employer of such claim by certified mail. If the
employer or former employer fails to pay the claim or make
satisfactory explanation to the secretary of his failure to do
so within ten days after receipt of such certified notification,
thereafter, the employer or former employer shall be liable for
a penalty of [ten percent (10%)