Pennsylvania HB 1056: An Act providing for criteria for independent contractors in the traveling sales industry and for the powers and duties of the Department of Labor and Industry; and imposing penalties.

Bill Text

PRINTER'S NO. 1147
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1056
Session of
2025
INTRODUCED BY WARREN, BURGOS, HILL-EVANS, PIELLI, SANCHEZ,
NEILSON, GALLAGHER AND CERRATO, MARCH 26, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 26, 2025
AN ACT
Providing for criteria for independent contractors in the
traveling sales industry and for the powers and duties of the
Department of Labor and Industry; and imposing penalties.
TABLE OF CONTENTS
Section 1. Short title.
Section 2. Definitions.
Section 3. Employee determination.
Section 4. Improper classification of employees.
Section 5. Registration required.
Section 6. Payment of compensation, deductions, statements and
records.
Section 7. Worker safety.
Section 8. Insurance coverage.
Section 9. Prohibited practices.
Section 10. Criminal offenses.
Section 11. Administrative penalties.
Section 12. Procedure.
Section 13. Certain agreements prohibited.
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Section 14. Retaliation prohibited.
Section 15. Rules and regulations.
Section 16. 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 Traveling
Sales Crew Worker Employment 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:
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employee." Either of the following:
(1) In relation to workers' compensation, the term shall
have the meaning given to "employe" in section 104 of the
Workers' Compensation Act.
(2) In relation to unemployment compensation, the term
shall have the meaning given to "employe" in section 4(i) of
the Unemployment Compensation Law.
"Employer." Either of the following:
(1) In relation to workers' compensation, the term shall
have the meaning given to it in section 103 of the Workers'
Compensation Act.
(2) In relation to unemployment compensation, the term
shall have the meaning given to it in section 4(j) of the
Unemployment Compensation Law.
"Secretary." The Secretary of Labor and Industry of the
Commonwealth.
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"Traveling sales crew." The following:
(1) Two or more individuals who are employed as
salespersons or in related support work who travel together
in a group and who are absent overnight from their permanent
places of residence for the purpose of selling consumer goods
or services to consumers from house to house, or on any
street or in any other place that is open to the public.
(2) The term does not include:
(i) two or more individuals who are traveling
together for the purpose of participating in a trade show
or convention; or
(ii) two or more immediate family members who are
traveling together for the purpose of selling consumer
goods or services.
"Unemployment Compensation Law." The act of December 5, 1936
(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
Compensation Law.
"Workers' Compensation Act." The act of June 2, 1915
(P.L.736, No.338), known as the Workers' Compensation Act.
Section 3. Employee determination.
A worker on a traveling sales crew shall be considered an
employee rather than an independent contractor unless the hiring
entity demonstrates that all of the following conditions are
satisfied:
(1) The individual is free from the control and
direction of the hiring entity in connection with the
performance of the work, both under the contract for the
performance of the work and in fact.
(2) The individual performs work that is outside the
usual course of the hiring entity's business.
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(3) The individual is customarily engaged in an
independently established trade, occupation or business of
the same nature as that involved in the work performed.
Section 4. Improper classification of employees.
(a) Violation.--An employer, officer or agent of an employer
shall be in violation of this act if the employer, officer or
agent:
(1) fails to properly classify an individual as an
employee for purposes of the Workers' Compensation Act and
fails to provide the coverage required under the Workers'
Compensation Act; or
(2) fails to properly classify an individual as an
employee for purposes of the Unemployment Compensation Law
and fails to pay contributions, reimbursements or other
amounts required to be paid under the Unemployment
Compensation Law.
(b) Separate offenses.--Each individual who is not properly
classified as an employee shall be the basis of a separate
violation of this section.
(c) Order to show cause.--
(1) If the secretary receives information indicating
that an individual has violated this act, the secretary may
investigate the matter and issue an order to show cause why
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