PRINTER'S NO. 245
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
198
Session of
2015
INTRODUCED BY TARTAGLIONE, TEPLITZ, YUDICHAK, HUGHES, SCHWANK,
COSTA AND FARNESE, JANUARY 28, 2015
REFERRED TO LABOR AND INDUSTRY, JANUARY 28, 2015
AN ACT
Amending the act of July 14, 1961 (P.L.637, No.329), entitled
"An act relating to the payment of wages or compensation for
labor or services; providing for regular pay days; conferring
powers and duties upon the Department of Labor and Industry,
including powers and duties with respect to the civil
collection of wages; providing civil and criminal penalties
for violations of the act; providing for their collection and
disposition and providing for additional civil damages,"
further providing for definitions; providing for duty of
department to report; further providing for civil remedies
and penalties, for liquidated damages and for criminal
penalties; providing for employer liability; and establishing
the Wage Enforcement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "employer" in section 2.1 of
the act of July 14, 1961 (P.L.637, No.329), known as the Wage
Payment and Collection Law, added July 14, 1977 (P.L.82, No.30),
is amended and the section is amended by adding a definition to
read:
Section 2.1. Definitions.--The following words and phrases
when used in this act shall have, unless the context clearly
indicates otherwise, the meanings given to them in this section:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
* * *
"Employer." Includes the Commonwealth; any of its political
subdivisions; any authority created by the General Assembly and
any instrumentality or agency of the Commonwealth; every person,
firm, partnership, association, corporation, receiver or other
officer of a court of this Commonwealth and any agent or officer
of any of the above-mentioned classes employing any person in
this Commonwealth.
* * *
"High violation industry." An industry that incurs at least
25 violations over a two-year period.
* * *
Section 2. The act is amended by adding a section to read:
Section 8.1. Duty of department to report.--(a) The
department shall collect on a quarterly basis the following data
categorized by industry: the number of violations; amount of
fines collected; nature of violations; number of individual
complaints filed; number of complaints resolved; amount of
unpaid wages owed; amount of unpaid wages recovered; number of
pending individual complaints; number of workplaces investigated
from complaints and number of workplaces investigated
proactively; number of workplaces reinvestigated following
violations; and number of subsequent violations. On a semi-
annual basis, the department shall prepare and submit a report
of this data to the Chairman of the Labor and Industry Committee
of the Senate and the Chairman of the Labor and Industry
Committee of the House of Representatives and post the report on
the department's publicly accessible Internet website.
(b) The secretary shall investigate high-violation
industries no less than quarterly; train investigators to
20150SB0198PN0245 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
recognize basic labor, health and safety violations; and engage
in cross-agency referrals to protect workers' rights.
Section 3. Section 9.1(c) of the act, added July 14, 1977
(P.L.82, No.30), is amended and the section is amended by adding
a subsection to read:
Section 9.1. Civil Remedies and Penalties.--* * *
(c) The employe or group of employes, labor organization or
party to whom any type of wages is payable may, in the
alternative, inform the secretary of the wage claim against an
employer or former employer, and the secretary shall, unless the
claim appears to be frivolous, immediately notify the employer
or former employer of such claim by certified mail. If the
employer or former employer fails to pay the claim or make
satisfactory explanation to the secretary of his failure to do
so within ten days after receipt of such certified notification,
thereafter, the employer or former employer shall be liable for
a penalty of [ten percent (10%) of that portion of the claim
found to be justly due.] one thousand dollars ($1,000) per
violation of this act or the regulations or equal to twice the
underpaid wages in damages to the employe, whichever is greater.
Each week in which an employe is paid less than the applicable
wage under this act and each employe who is paid less than the
prescribed rate shall constitute a separate violation which
shall be subject to a separate penalty. A good faith dispute or
contest as to the amount of wages due or the good faith
assertion of a right of set-off or counter-claim shall be deemed
a satisfactory explanation for nonpayment of such amount in
dispute or claimed as a set-off or counter-claim. The secretary
[shall have a cause of action against the employer or former
employer for recovery of such penalty and the same] may issue
20150SB0198PN0245 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
orders and levy the civil penalty only after affording the
accused party the opportunity for a hearing as provided in 2
Pa.C.S. (relating to administrative law and procedure). Such
penalty may be included in any subsequent action by the
secretary on said wage claim or may be exercised separately
after adjustment of such wage claim without court action. At the
request of an employe, the department shall assign that portion
of the money due that constitutes wages, wage supplements,
interest on wages or wage supplements, and liquidated damages
due that employe, to that employe and file an order in that
amount in the name of that employe with the county clerk of the
county where the employer resides or has a place of business.
The filing of such order shall have the full force and effect of
a judgment duly docketed in the office of such clerk.
* * *
(h) Any employer and his or her agent, or the officer or
agent of any corporation, who discharges or in any other manner
discriminates against any employe who has filed or submitted a
complaint under this act, cooperated with the secretary or the
secretary's representative, submitted evidence, testified or is
about to testify before the secretary or the secretary's
representative in any investigation or proceeding under or
related to this act, or because such employer believes that said
employe may take these actions, or has exercised any right under
this act or any regulation implementing its provisions, or
because such employe provides assistance or information to
another employe about this act shall, upon conviction thereof,
be sentenced to pay a fine of not less than five hundred dollars
($500) nor more than one thousand dollars ($1,000), and in
default of the payment of such fine and costs, shall be
20150SB0198PN0245 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
sentenced to imprisonment for not less than ten days nor more
than 90 days. A first offense under this subsection shall be
graded as a summary offense. A second or subsequent offense
under this subsection, committed within a five-year period of
the prior offense, shall be graded as a misdemeanor of the third
degree and shall be punishable by a fine of not less than one
thousand dollars ($1,000) nor more than three thousand dollars
($3,000) or to imprisonment of not less than ten nor more than
100 days. Each day of such failure to comply with this
subsection or its regulations and each employe who is discharged
or in any other manner discriminated against shall constitute a
separate offense subject to a separate penalty. Any employer and
his or her agent, or the officer or agent of any corporation,
may also be required to pay the employe an amount set by the
court sufficient to compensate the employe and deter future
violations.
Section 4. Sections 10 and 11.1 of the act, amended or added
July 14, 1977 (P.L.82, No.30), are amended to read:
Section 10. Liquidated Damages.--Where wages remain unpaid
for thirty days beyond the regularly scheduled payday, or, in
the case where no regularly scheduled payday is applicable, for
sixty days beyond the filing by the employe of a proper claim or
for sixty days beyond the date of the agreement, award or other
act making wages payable, or where shortages in the wage
payments made exceed five percent (5%) of the gross wages
payable on any two regularly scheduled paydays in the same
calendar quarter, and no good faith contest or dispute of any
wage claim including the good faith assertion of a right of set-
off or counter-claim exists accounting for such non-payment, the
employe shall be entitled to claim, in addition, as liquidated
20150SB0198PN0245 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
damages an amount equal to [twenty-five percent (25%) of the
total amount of wages due, or five hundred dollars ($500),
whichever is greater.] twice the underpaid wages due or one
thousand dollars ($1,000), whichever is greater. Each week in
which an employe is paid less than the applicable wage under
this act shall constitute a separate violation which shall be
subject to a separate penalty.
Section 11.1. Criminal Penalties.--(a) The secretary or any
employe, group of employes, labor organization or party to whom
any type of wages is payable may institute prosecutions under
this act.
(b) In addition to any other penalty or punishment otherwise
prescribed by law, any employer who violates any provisions of
this act [shall be guilty of a summary offense and, upon
conviction thereof,] shall be punished by a fine of not [more]
less than three hundred dollars ($300) nor more than one
thousand dollars ($1,000), or by imprisonment up to 90 days, or
by both[, for each offense]. Each day of such failure to comply
with this act, and each employe against whom the employer or
officer or agent of any corporation violated any other provision
of this act, shall constitute a separate offense which shall be
subject to a separate penalty. A first offense under this
subsection shall be graded as a summary offense. A second or
subsequent offense under this subsection, committed within a
five-year period of the prior offense, shall be graded as a
misdemeanor of the third degree and shall be punishable by a
fine of not less than five hundred dollars ($500) nor more than
one thousand dollars ($1,000). The good faith contest or dispute
by any employer of any wage claim or the good faith assertion of
a right of set-off or counter-claim shall not be considered a
20150SB0198PN0245 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
violation of this act: Provided, That the employer has paid all
wages due in excess of the amount in dispute or asserted to be
subject to a right of set-off or counter-claim. [Nonpayment of
wages to, on account of, or for the benefit of each individual
employe shall constitute a separate offense.]
(c) Where such employer is a corporation, the president,
secretary, treasurer or officers exercising corresponding
functions shall each be guilty of such summary offense.
(d) [All fines or penalties collected under this act shall
be paid into the State Treasury through the Department of
Revenue to the credit of the General Fund.] All fines and
penalties collected under section 9.1 and this section, as well
as section 12 of the act of January 17, 1968 (P.L.11, No.5),
known as The Minimum Wage Act of 1968, shall be deposited into
the Wage Enforcement Fund established under section 11.2. This
subsection does not apply to penalties and wages paid to
employes for violations of this act or The Minimum Wage Act of
1968.
Section 5. The act is amended by adding sections to read:
Section 11.2. Employer Liability.--An employer similar in
operation and ownership to another employer found in violation
of section 9.1(c) or (h) or 11.1(b) shall be deemed the same
employer for the purposes of this section if the employes of the
similar employer are engaged in substantially the same work in
substantially the same working conditions under substantially
the same supervisors, or if the similar employer has
substantially the same production process, produces
substantially the same products and has the same body of
customers as the other employer found in violation of section
9.1(c) or (h) or 11.1(b). Such similar employer shall continue
20150SB0198PN0245 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
to be subject to section 9.1(c) or (h) or 11.1(b) and shall be
liable for the acts of such other employer under section 9.1(c)
or (h) or 11.1(b), as applicable.
Section 11.3. Wage Enforcement Fund.--(a) The Wage
Enforcement Fund is established in the State Treasury. The
moneys in the Wage Enforcement Fund shall consist of the fines
and penalties collected under sections 9.1 and 11.1 and section
12 of the act of January 17, 1968 (P.L.11, No.5), known as The
Minimum Wage Act of 1968, and deposited into the fund pursuant
to section 12 of The Minimum Wage Act of 1968.
(b) Moneys in the Wage Enforcement Fund are hereby
appropriated on a continuing basis, upon approval of the
Governor, to the department for periodic inspections, for
investigations of violations and for the enforcement of this act
and The Minimum Wage Act of 1968, including, but not limited to,
staffing for inspection, investigation and enforcement under
this act and The Minimum Wage Act of 1968.
(c) No moneys may be expended or obligated from the Wage
Enforcement Fund to any third party for any other purpose than
investigation, training investigators and enforcement under this
act and The Minimum Wage Act of 1968.
(d) Moneys in the Wage Enforcement Fund shall not lapse at
any time or be transferred to any other fund, except as provided
in section 12 of The Minimum Wage Act of 1968.
(e) No later than June 30 of each calendar year the
department shall provide a report to the Governor and the
General Assembly, through the Secretary-Parliamentarian of the
Senate and the Chief Clerk of the House of Representatives,
regarding the Wage Enforcement Fund. The report shall include an
accounting for the fines collected and deposited into the fund,
20150SB0198PN0245 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the expenditures and transfers from the fund during the prior
year, a description of the purposes for which expenditures from
the fund were made in the prior year and a full account of the
data collections required of the department under section 7 of
The Minimum Wage Act of 1968. This report shall be posted on the
department's publicly accessible Internet website no later than
July 1 of each calendar year.
Section 6. This act shall take effect in 60 days.
20150SB0198PN0245 - 9 -
1
2
3
4
5
6
7
8