Pennsylvania HB 2105: An Act providing for employer self-audit program to foster collaboration with employers to voluntarily remedy unpaid wages owed to an affected employee or cure a negligent violation that was the result of an employer inadvertently violating a labor act.

Bill Text

PRINTER'S NO. 2723
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2105
Session of
2025
INTRODUCED BY GROVE, PICKETT AND NEILSON, DECEMBER 17, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, DECEMBER 17, 2025
AN ACT
Providing for employer self-audit program to foster
collaboration with employers to voluntarily remedy unpaid
wages owed to an affected employee or cure a negligent
violation that was the result of an employer inadvertently
violating a labor act.
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 Employer
Self-audit 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:
"Affected employee." An employee affected by a violation of
a labor act that resulted in unpaid wages or a negligent
violation.
"Employee." As defined in the labor act under which the
individual was considered an affected employee.
"Employer." As defined in the labor act under which a
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

violation was found as the result of a self-audit.
"Good faith." With respect to an employer applying for
participation in the self-audit program established under
section 3, that the employer is not, at the time the employer
submits an application for the program:
(1) Under investigation by the secretary for an alleged
violation of a labor act.
(2) Subject to a lawsuit related to an alleged violation
of a labor act.
"Labor act." Any of the following:
(1) The act of July 14, 1961 (P.L.637, No.329), known as
the Wage Payment and Collection Law.
(2) The act of August 15, 1961 (P.L.987, No.442), known
as the Pennsylvania Prevailing Wage Act.
(3) The act of January 17, 1968 (P.L.11, No.5), known as
The Minimum Wage Act of 1968.
(4) The act of October 13, 2010 (P.L.506, No.72), known
as the Construction Workplace Misclassification Act.
(5) The act of October 24, 2012 (P.L.1209, No.151),
known as the Child Labor Act.
"Negligent violation." A violation that is not one of the
following:
(1) a willful violation;
(2) a violation which causes bodily injury to a minor or
creates a significant risk of bodily injury to a minor; or
(3) a violation related to falsification of records.
"Secretary." The Secretary of Labor and Industry of the
Commonwealth, or a duly authorized representative.
"Self-audit." An audit conducted by an employer to resolve
inaccuracies by the employer in the computation of wages or
20250HB2105PN2723 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

determining a negligent violation under a labor act.
"Unpaid wage violation." A violation that affected the
monetary compensation of an affected employee.
Section 3. Employer self-audit program.
(a) Establishment.--The secretary shall establish an
employer self-audit program to foster collaboration with
employers to voluntarily remedy unpaid wages owed to an affected
employee or cure a negligent violation that was the result of an
employer inadvertently violating a labor act.
(b) Application requirements.--
(1) The secretary shall:
(i) Not later than 60 days after the effective date
of this paragraph, make available to employers resources
for assistance in complying with a labor act, which shall
be offered through electronic and printed materials.
(ii) Not later than 90 days after the effective date
of this paragraph, make available resources for
assistance in applying for the program.
(2) An employer seeking to participate in the program
shall submit an application to the secretary that includes:
(i) Materials related to and the results of a self-
audit, including:
(A) An identification of any practice of the
employer identified in a self-audit that may have
resulted in an unpaid wage violation or negligent
violation.
(B) A list of each employee who may be an
affected employee with respect to the violation,
including:
(I) The period of time the employee would
20250HB2105PN2723 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

have been affected by the violation.
(II) Payroll records related to the employee
for the period with information on the hours of
work performed by the employee.
(III) Contact information for the employee.
(ii) For an unpaid wage violation, in addition to
the materials under subparagraph (i), the following shall
be required:
(A) A calculation of unpaid wages owed to an
affected employee with a description of the
methodology of the calculation and supporting
evidence.
(B) An explanation of the scope of potential
violations of unpaid wage requirements of the labor
act for inclusion in a release of claims under
subsection (e).
(iii) An assurance that a practice of the employer
that resulted in a violation of unpaid wages or a
negligent violation that is identified in the self-audit
has been corrected to comply with