PRINTER'S NO. 1330
No. 1128 Session of 2003
INTRODUCED BY McCALL, COY, GERGELY, GRUCELA, HORSEY, LAUGHLIN,
MANN, MELIO, SURRA, TANGRETTI, TIGUE, WASHINGTON AND
YOUNGBLOOD, APRIL 9, 2003
REFERRED TO COMMITTEE ON LABOR RELATIONS, APRIL 9, 2003
AN ACT
1 Amending the act of July 14, 1961 (P.L.637, No.329), entitled
2 "An act relating to the payment of wages or compensation for
3 labor or services; providing for regular pay days; conferring
4 powers and duties upon the Department of Labor and Industry,
5 including powers and duties with respect to the civil
6 collection of wages; providing civil and criminal penalties
7 for violations of the act; providing for their collection and
8 disposition and providing for additional civil damages,"
9 further providing for the definition of "employer" and for
10 remedies and penalties.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The definition of "employer" in section 2.1 of
14 the act of July 14, 1961 (P.L.637, No.329), known as the Wage
15 Payment and Collection Law, added July 14, 1977 (P.L.82, No.30),
16 is amended to read:
17 Section 2.1. Definitions.--The following words and phrases
18 when used in this act shall have, unless the context clearly
19 indicates otherwise, the meanings given to them in this section:
20 * * *
21 "Employer." Includes every person, firm, partnership,
1 association, corporation, municipal corporation, Commonwealth
2 agency, receiver or other officer of a court of this
3 Commonwealth and any agent or officer of any of the above-
4 mentioned classes employing any person in this Commonwealth.
5 * * *
6 Section 2. Section 9.1 of the act, added July 14, 1977
7 (P.L.82, No.30) and repealed in part October 5, 1980 (P.L.693,
8 No.142), is amended to read:
9 Section 9.1. Civil Remedies and Penalties.--(a) Any employe
10 or group of employes, labor organization or party to whom any
11 type of wages is payable may institute actions provided under
12 this act.
13 (b) Actions by an employe, labor organization, or party to
14 whom any type of wages is payable to recover unpaid wages and
15 liquidated damages may be maintained in any court of competent
16 jurisdiction, by such labor organization, party to whom any type
17 of wages is payable or any one or more employes for and in
18 behalf of himself or themselves and other employes similarly
19 situated, or such employe or employes may designate an agent or
20 representative to maintain such action or on behalf of all
21 employes similarly situated. Any such employe, labor
22 organization, party, or his representative shall have the power
23 to settle or adjust his claim for unpaid wages.
24 (c) The employe or group of employes, labor organization or
25 party to whom any type of wages is payable may, in the
26 alternative, inform the secretary of the wage claim against an
27 employer or former employer, and the secretary shall, unless the
28 claim appears to be frivolous, immediately notify the employer
29 or former employer of such claim by certified mail. If the
30 employer or former employer fails to pay the claim or make
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1 satisfactory explanation to the secretary of his failure to do
2 so within ten days after receipt of such certified notification,
3 thereafter, the employer or former employer shall be liable for
4 a penalty of ten percent (10%) of that portion of the claim
5 found to be justly due. A good faith dispute or contest as to
6 the amount of wages due or the good faith assertion of a right
7 of set-off or counter-claim shall be deemed a satisfactory
8 explanation for nonpayment of such amount in dispute or claimed
9 as a set-off or counter-claim. The secretary shall have a cause
10 of action against the employer or former employer for recovery
11 of such penalty and the same may be included in any subsequent
12 action by the secretary on said wage claim or may be exercised
13 separately after adjustment of such wage claim without court
14 action.
15 (d) In any civil action brought under the provisions of this
16 act, the [Secretary of Labor and Industry] court may require the
17 employer to post bond or security to secure payment of the
18 entire claim of the employe with credit in the amount of any
19 good faith assertion of a right of set-off or counter-claim.
20 Such bond or security shall be posted in the court where the
21 civil action is brought. The [request] requirement for bond or
22 security shall be signed by the [secretary] court and shall
23 provide that such bond or security in the amount stated shall be
24 posted within 30 days of service thereof on the employer. If
25 such bond or security is not posted within the 30-day period,
26 the employer will be deemed to have admitted his liability,
27 judgment may be entered based on this deemed admission and
28 execution may immediately ensue. Before ordering bond or
29 security under this subsection, the court shall afford all
30 parties the opportunity to be heard, and shall consider the
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1 exigency of the need for bond or security, the likelihood of
2 success on the merits and the employer's ability to satisfy the
3 judgment requested by the employe.
4 (e) If the secretary determines that wages due have not been
5 paid and that such unpaid wages constitute an enforceable claim,
6 the secretary shall, upon the request of the employe, labor
7 organization or party to whom any type of wages is payable, take
8 an assignment in trust, from the requesting party of such claim
9 for wages without being bound by any of the technical rules
10 respecting the validity of any such assignments and may bring
11 any legal action necessary to collect such claim, subject to the
12 right by the employer to set-off or counter-claim against the
13 assigning party. Upon any such assignment, the secretary shall
14 have the power to settle and adjust any such claim to the same
15 extent as might the assigning party. If venue lies in a city of
16 the first class, the secretary may bring a legal action under
17 this section in a municipal court established pursuant to
18 section 6(c) of Article V of the Constitution of the
19 Commonwealth of Pennsylvania if the sum demanded does not exceed
20 the jurisdictional limit established by statute for that court.
21 (f) The court in any action brought under this section
22 shall, in addition to any judgment awarded to the plaintiff or
23 plaintiffs, allow costs for reasonable attorneys' fees of any
24 nature to be paid by the defendant.
25 (g) No administrative proceedings or legal action shall be
26 instituted under the provisions of this act for the collection
27 of unpaid wages or liquidated damages more than three years
28 after the day on which such wages were due and payable as
29 provided in sections 3 and 5.
30 (h) The secretary may enter into a reciprocal agreement with
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1 the department or corresponding authority of another state or
2 territory for the collection of claims and judgments for wages
3 in that state or territory based upon claims assigned to the
4 secretary.
5 (i) If the secretary enters into a reciprocal agreement with
6 another state or territory in accordance with subsection (h),
7 the secretary may commence actions in the courts of the state or
8 territory or assign actions to the corresponding authority of
9 the state or territory, for the collection of claims and
10 judgments assigned to the secretary under this section.
11 (j) If the secretary enters into a reciprocal agreement with
12 another state or territory in accordance with subsection (h) or
13 if a state or territory permits the secretary to commence
14 actions in its courts by statute, the secretary may commence an
15 action in a court of this Commonwealth for the collection of
16 claims assigned from the department or corresponding authority
17 of the state or territory to the extent authorized by this act
18 for claims arising in this Commonwealth.
19 Section 3. This act shall take effect in 60 days.
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