Pennsylvania SB 72: An Act amending the act of October 13, 2010 (P.L.506, No.72), known as the Construction Workplace Misclassification Act, 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.

Bill Text

PRINTER'S NO. 818
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 72
Session of
2025
INTRODUCED BY KANE, TARTAGLIONE, L. WILLIAMS, ROBINSON, COLLETT,
KEARNEY, HUGHES, STREET, COSTA, SAVAL, FARRY, SANTARSIERO,
PISCIOTTANO AND FLYNN, MAY 22, 2025
REFERRED TO LABOR AND INDUSTRY, MAY 22, 2025
AN ACT
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of October 13, 2010
(P.L.506, No.72), known as the Construction Workplace
Misclassification Act, is amended by adding definitions to read:
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:
* * *
"Debar." Action taken by the secretary to prohibit a
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contractor, subcontractor or person from contracting for or
participating in contracts for public work projects and other
State procurement contracts for a specified period not to exceed
three years for the first offense and five years for a second or
subsequent offense. The debarment:
(1) Shall cover future projects and contracts and
current projects and contracts entered into but on which the
debarred contractor, subcontractor or person's work has not
begun as of the effective date of the debarment.
(2) Shall include all divisions or other organizational
elements of a contractor or subcontractor unless limited by
the terms of the debarment to specific divisions or
organizational elements and shall apply to any other entity
or organization in which the debarred contractor,
subcontractor or person has an ownership interest.
(3) May apply to an affiliate or other person associated
with the debarred contractor, subcontractor or person if the
information received by the secretary under section 4(c)(1)
or the investigation under section 4(c)(1) demonstrates that
the affiliate or other person supplied labor for the
construction project knowing the workers were being
misclassified. The affiliate or other person must be
specifically named as a party in an order to show cause under
section 4 with the same procedural rights and obligations as
other parties subject to an order to show cause under this
act. An affiliate or other person under this paragraph shall
include any owner, principal, partner or officer of the
contractor, subcontractor or person, and any business entity
in which the contractor, subcontractor or person has an
interest as owner, principal, parent or subsidiary of the
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entity.
* * *
"Public work." The term shall have the meaning given to it
in section 2(5) of the act of August 15, 1961 (P.L.987, No.442),
known as the Pennsylvania Prevailing Wage Act.
* * *
Section 2. Section 4(c)(2), (d) and (e) of the act are
amended to read:
Section 4. Improper classification of employees.
* * *
(c) Order to show cause.--
* * *
(2) A person served with an order to show cause shall
have a period of [20] 10 days from the date the order is
served to file an answer in writing.
* * *
(d) Enforcement.--
(1) If, subsequent to issuing an order to show cause
under subsection (c), the secretary finds probable cause that
an employer has [committed a criminal violation of this act,
the secretary shall refer the matter to the Office of
Attorney General for investigation or] violated this act , the
secretary shall impose administrative penalties under section
6.
(2) In addition to imposing penalties under paragraph
(1), the secretary may refer the matter to the Attorney
General for criminal investigation. The secretary shall make
a referral if the employer has previously been adjudicated to
be in violation of this act. The Attorney General has
jurisdiction under section 5 to initiate an investigation or
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prosecution of criminal violations of this act regardless of
whether a referral has been made.
(e) Acting in concert with other parties.--A party that does
not meet the definition of "employer" in section 2, but which
[intentionally] contracts with an employer [knowing the employer
intends to misclassify] to supply labor for construction knowing
the employer will misclassify the supplied employ