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 Section 9.1 of the act, added July 14, 1977 7 (P.L.82, No.30) and repealed in part October 5, 1980 (P.L.693, 8 No.142), is amended to read: 9 Section 9.1.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 20030H1128B1330 - 2 -
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 20030H1128B1330 - 3 -
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 20030H1128B1330 - 4 -
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. A28L43MRD/20030H1128B1330 - 5 -