PRINTER'S NO. 1322

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1205 Session of 1993


        INTRODUCED BY PICCOLA, FLEAGLE, CHADWICK, SCHEETZ, CARONE,
           ARMSTRONG, NAILOR, HECKLER, NICKOL, S. H. SMITH, DEMPSEY,
           SAYLOR, CLYMER, BUNT, B. SMITH, FAIRCHILD, SEMMEL, HESS,
           SAURMAN, CORNELL, DRUCE, ROHRER, PITTS, MASLAND, TULLI,
           MILLER, E. Z. TAYLOR, GEIST, LEH, PETTIT, BARLEY, HARLEY,
           LEE, FARGO, SERAFINI, MARSICO AND CLARK, APRIL 19, 1993

        REFERRED TO COMMITTEE ON LABOR RELATIONS, APRIL 19, 1993

                                     AN ACT

     1  Amending the act of May 18, 1937 (P.L.665, No.176), entitled "An
     2     act relating to the performance of industrial work in homes;
     3     regulating, and in certain cases prohibiting, industrial
     4     homework; imposing duties, restrictions and liabilities on
     5     industrial home-workers and on persons, partnerships,
     6     associations and corporations, directly or indirectly
     7     furnishing materials and articles to home-workers for
     8     manufacture or work thereon; requiring permits and home-
     9     workers' certificates and prescribing the fees therefor;
    10     conferring powers and imposing duties on the Department of
    11     Labor and Industry; and prescribing penalties," changing the
    12     purpose of the act; further regulating the performance of
    13     industrial work in homes; providing for Federal preemption;
    14     and making editorial changes.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Section 1 of the act of May 18, 1937 (P.L.665,
    18  No.176), known as the Industrial Homework Law, amended November
    19  24, 1976 (P.L.1196, No.263), is amended to read:
    20     Section 1.  Legislative Purpose.--This State has long
    21  recognized that employment of men, women and children under
    22  conditions detrimental to health and general welfare results in

     1  injury, not only to the workers immediately affected, but also
     2  to the public interest as a whole. This recognition has produced
     3  a broad program of regulatory legislation to conserve the public
     4  welfare. The continuance of an unregulated industrial homework
     5  system in this State runs counter to that program since it is
     6  usually accompanied by excessively low wages, long and irregular
     7  hours, and unsanitary or otherwise inadequate working quarters.
     8  In enacting this act, the Legislature [stated] states that
     9  unregulated industrial homework [was] is harmful to society as a
    10  whole, to the industrial homework work force, and to workers in
    11  factory industries forced to compete against the lower wages and
    12  less salutary working conditions characteristic of industrial
    13  homework. The Legislature [concluded] concludes that
    14  ["industrial homework must eventually be abolished."] industrial
    15  homework must be regulated. It is the aim of this act to achieve
    16  that goal, and eliminate the pernicious [influence] effects of
    17  industrial homework on the people of this State, by [abolishing]
    18  regulating industrial homework [except when it is engaged in by
    19  certain types of individuals unable to leave their homes to
    20  work, as hereinafter specified].
    21     Section 2.  Section 5 of the act is amended to read:
    22     Section 5.  Power to Prohibit.--(a) The department shall have
    23  the power, upon its own initiative, to make an investigation of
    24  any industry or that portion or branch of any industry which
    25  employs home-workers, in order to determine:
    26     (1)  Whether the [wages and] conditions of employment are
    27  injurious to the health and welfare of home-workers in such
    28  industry or portion or branch; or
    29     (2)  Whether the payment of wages [and conditions of
    30  employment prevailing] in such industry or portion or branch
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     1  have the effect of rendering unduly difficult the maintenance of
     2  existing labor standards, or the observance and enforcement of
     3  labor standards established by law, or regulation [for the
     4  industry of which such portion or branch is a part, thus
     5  jeopardizing wages or working conditions of the factory workers
     6  in such industry].
     7     (b)  If, on the basis of information in its possession, [with
     8  or without an investigation as provided in this section,] the
     9  department shall find that industrial homework cannot be
    10  continued within any industry or portion or branch of any
    11  industry without injuring the health and welfare of the home-
    12  workers [within that industry], or without rendering unduly
    13  difficult the maintenance of existing labor standards or the
    14  observance and enforcement of labor standards established by law
    15  for [the protection of the factory workers in] that industry,
    16  the department shall, by order, require all employers,
    17  representative contractors, or contractors in such industry or
    18  portion or branch to discontinue the furnishing within this
    19  Commonwealth of articles or materials for industrial homework,
    20  and no permit issued under this act shall be deemed thereafter
    21  to authorize the furnishing of articles, or materials for
    22  industrial homework prohibited by such order.
    23     (c)  All power machines used in conduct of industrial
    24  homework shall be guarded in accordance with the laws and
    25  regulations of the Department of Labor and Industry.
    26     Section 3.  Sections 11 and 13 of the act, amended November
    27  24, 1976 (P.L.1196, No.263), are amended to read:
    28     Section 11.  Home-Worker's Certificate.--(a)  Every person
    29  desiring to engage in industrial homework within this
    30  Commonwealth must procure from the department a home-worker's
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     1  certificate, which shall be issued without cost and which shall
     2  be valid for a period of one year from the date of its issuance,
     3  unless sooner revoked or suspended by action of the department
     4  [or, under subsection (f) of this section, automatically].
     5  Application for such certificate shall be made in such form as
     6  the department may by regulation prescribe and must be remade
     7  each year. Such certificate shall be valid only for work
     8  performed by the applicant himself in his own home, and in
     9  accordance with the provisions of this act.
    10     (b)  No home-worker's certificate shall be issued:--
    11     (1)  To any person under the age of sixteen years; or
    12     (2)  To any person known to be suffering from an infectious,
    13  contagious, or communicable disease, or known to be living in a
    14  home that is not clean, sanitary and free from infectious,
    15  contagious, or communicable diseases.
    16     [(3)  To any person, unless that person is unable to leave
    17  his home to work on account of:
    18     (i)  his own physical handicap, if that handicap has lasted
    19  for more than thirty consecutive days; or
    20     (ii)  his own illness, if that illness has lasted for more
    21  than thirty consecutive days; or
    22     (iii)  the necessity of caring for a member of his family who
    23  is ill or handicapped, if that illness and/or handicap and
    24  necessity has lasted for more than thirty consecutive days.]
    25     (c)  [It shall be the duty of each applicant for a home-
    26  worker's certificate to prove his eligibility for a certificate
    27  by presenting evidence of handicap or illness of himself or
    28  illness or handicap of a family member sufficient to prove to
    29  the department that he qualifies for a home-worker's certificate
    30  under one of the exceptions set forth in subsection (b)(3) of
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     1  this section.] The department shall be empowered to require any
     2  applicant for a home-worker's certificate[,] or any family
     3  member of any applicant for a home-worker's certificate [upon
     4  whose illness an applicant is relying in order to obtain a
     5  certificate,] to submit to a medical examination by a physician
     6  of the department's choosing in order to aid the department in
     7  making a decision on whether or not to issue a certificate.
     8     (d)  Whenever a physical examination by a physician is
     9  necessary, in order for a person to qualify for or to retain a
    10  home-worker's certificate, if the person is working, or has been
    11  promised work on the condition that he obtain a home-worker's
    12  certificate, it shall be the duty of the employer,
    13  representative contractor, or contractor for which the person is
    14  working or by which the person has been promised work, to pay
    15  the cost of the physical examination.
    16     (e)  Every certificate shall contain the following
    17  information, in addition to any information which the department
    18  shall, by regulation, require:
    19     (1)  The home-worker's
    20     (i)  name,
    21     (ii)  address,
    22     (iii)  sex,
    23     (iv)  Social Security number,
    24     (v)  date of birth,
    25     (vi)  height,
    26     (vii)  weight,
    27     (viii)  eye color,
    28     (ix)  hair color; and
    29     (2)  The expiration date of the certificate[; and
    30     (3)  The basis of the home-worker's eligibility for a
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     1  certificate, as set forth in subsection (b)(3) above.
     2     (f)  Upon the termination of the handicap, illness, or
     3  necessity of caring for a family member who is ill or
     4  handicapped which has qualified a person for a home-worker's
     5  certificate under subsection (b)(3) of this section, that
     6  person's certificate shall automatically be revoked].
     7     (g)  The department may revoke, or suspend any home-worker's
     8  certificate if it finds that the holder is performing industrial
     9  homework contrary to the conditions under which the certificate
    10  was issued, or to any provision of this act, or has permitted
    11  any person not holding a valid home-worker's certificate to
    12  assist him in performing his industrial homework or has obtained
    13  the certificate through fraud or misrepresentation.
    14     (h)  The department shall keep records of the applications
    15  made and certificates issued under this section, and of all
    16  information contained thereon.
    17     [(i)  Notwithstanding any provisions of this act to the
    18  contrary, a special home-worker's certificate may be issued to a
    19  person who does not qualify for a certificate under subsections
    20  (b)(3) and (c) if the person meets the other qualifications of
    21  subsection (b) and if the person has been employed fulltime for
    22  a period of at least six months in the manufacture of shoes, and
    23  is unable to continue his factory employment, if the following
    24  conditions are met:
    25     (1)  The special certificate holder may perform homework only
    26  for an employer which operates a factory in which shoes are
    27  manufactured, and which does not have more than five percent of
    28  its employes engaged in the manufacture of shoes in industrial
    29  homework.
    30     (2)  The homework performed by the special certificate holder
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     1  must be part of the manufacturing process of shoes.
     2     (3)  The special certificate holder must be paid the same
     3  wages and receive the same benefits as the employer pays or
     4  affords to employes in its factory who perform similar work.
     5     (4)  The employer must deliver and pick up all the materials
     6  used in or produced by homework at the home of the special
     7  certificate holder without charge to the home-worker.
     8     (5)  All machinery, equipment, and materials used in the
     9  manufacture of goods by the special certificate holder must be
    10  supplied to the special certificate holder and maintained by the
    11  employer without charge to the home-worker.
    12  A certificate issued under authority of this subsection shall
    13  bear a mark indicating that it permits its holder to engage in
    14  homework only in the shoe manufacturing industry. The provisions
    15  of this act shall govern the issuance and use of a special home-
    16  worker's certificate insofar as they do not conflict with this
    17  subsection. The use of a special home-worker's certificate in
    18  violation of this act shall automatically revoke the
    19  certificate.
    20     (j)  Notwithstanding any provisions of this act to the
    21  contrary, a special home-worker's certificate may be issued to a
    22  person who does not qualify for a certificate under subsections
    23  (b)(3) and (c) if the person meets the other qualifications of
    24  subsection (b), has been employed fulltime for a period of at
    25  least one month in the manufacture of brushes, is unable to
    26  continue his factory employment, and if the following conditions
    27  are met:
    28     (1)  The special certificate holder performs homework only
    29  for an employer operating a factory in which brushes are
    30  manufactured who does not have more than thirty per cent of its
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     1  employes engaged in the manufacture of brushes in industrial
     2  homework.
     3     (2)  The homework performed by the special certificate holder
     4  is part of the process of manufacturing brushes.
     5     (3)  The employer delivers and picks up all the materials
     6  used in or produced by homework at the home of the special
     7  certificate holder without charge to the home-worker.
     8     (4)  All machinery, equipment, and materials used in the
     9  manufacture of goods by the special certificate holder is
    10  supplied to the special certificate holder and maintained by the
    11  employer without charge to the home-worker.
    12  A certificate issued pursuant to this subsection shall bear a
    13  mark indicating that it permits its holder to engage in homework
    14  only in the brush manufacturing industry. The provisions of this
    15  act shall govern the issuance and use of a special home-worker's
    16  certificate insofar as they do not conflict with this
    17  subsection. The use of a special home-worker's certificate in
    18  violation of this act shall automatically revoke the
    19  certificate.]
    20     Section 13.  Conditions of Manufacture.--Industrial homework
    21  on articles or materials manufactured for any person to whom an
    22  employer's permit has been issued shall be performed:--
    23     (a)  Only by a person possessing a valid home-worker's
    24  certificate.
    25     (b)  Only by persons over the age of sixteen years.
    26     (c)  Only by persons resident in the home in which the work
    27  is done.
    28     (d)  Only during such hours as may be fixed by law or
    29  regulation as permissible hours of labor in factories by persons
    30  of the same age [and sex] as the home-worker[; and].
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     1     (e)  Only in a home that is clean and sanitary and free from
     2  any infectious, contagious, or communicable disease.
     3     (f)  Only [by persons who are incapable of leaving their
     4  homes to work because of one of the reasons stated in section
     5  11(b) (3).] for the same wages and the same benefits as the
     6  employer pays or affords to employes who perform similar work in
     7  the employer's factory.
     8     (g)  Only with manufacturing machinery, equipment and
     9  materials supplied and maintained by the employer without charge
    10  to the home-worker.
    11     Upon the issuance of an employer's permit to an employer, or
    12  representative contractor, or a contractor's permit to a
    13  contractor, such employer, representative contractor, or
    14  contractor, shall be deemed to have accepted responsibility for
    15  the observance of the conditions of manufacture specified by
    16  this section; and each of such conditions shall be deemed to be
    17  a condition of the employer's or contractor's permit to the same
    18  extent as though it were expressly set forth therein.
    19     Section 4.  The act is amended by adding a section to read:
    20     Section 21.2.  Federal Jurisdiction.--(a)  This act shall not
    21  apply to an employer, contractor or representative contractor
    22  who, but for this act, is subject to the provisions of the Fair
    23  Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et
    24  seq.) and would be granted a certificate and authorized to
    25  employ home-workers under the Fair Labor Standards Act of 1938
    26  and its regulations relating to industrial homework.
    27     (b)  Home-workers are subject to the same jurisdictional
    28  statutes and regulations as the person by whom they are
    29  employed.
    30     Section 5.  This act shall take effect in 60 days.
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