PA SB 586

Author

Nick Pisciottano
460 Main Capitol, Senate Box 203045
Harrisburg, PA 17120
717-787-5580
PASenatorNick@pasenate.com
Author Detail Link

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Bill Text

Category

Employee Misclassification

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State

PA

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Summary

Extends the Construction Workplace Misclassification Act, beyond the construction trades to cover other industries.

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Issue

Establishes the Workplace Misclassification Act, comprehensive criteria for determining whether a worker is an independent contractor or an employee in Pennsylvania, primarily focusing on industries outside of construction. Requires that independent contractors have a written, project-specific contract, be free from direction and control, and be genuinely engaged in an independently established business. To qualify as an independent contractor, individuals must possess their own tools, have the potential to profit or suffer loss from their work, operate through a business with a proprietary interest, maintain a separate business location, and either have previously performed similar services for others or market themselves as available for such services. Introduces penalties for employers who misclassify workers, including administrative fines up to $2,500 per violation, potential criminal charges ranging from summary offenses to felonies, and the possibility of being debarred from public work contracts for at least three years. Also, protects workers by allowing them to bring private legal actions if they are misclassified, with potential remedies including reinstatement, triple wage restitution, and attorney fees. The Department of Labor and Industry is tasked with enforcing these provisions, developing informational materials, and submitting annual reports to the General Assembly about the act's implementation.

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Notes

Pending Committee action.

History

04/09/2025 Introduced. Read first time. Referred to Senate Committee on Labor and Industry.