PRINTER'S NO. 146
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
173
Session of
2019
INTRODUCED BY CALTAGIRONE, MILLARD, READSHAW, HARKINS, MURT,
DeLUCA, YOUNGBLOOD, KORTZ, SCHWEYER, DEASY, A. DAVIS, HILL-
EVANS AND NEILSON, JANUARY 28, 2019
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 28, 2019
AN ACT
Amending the act of October 13, 2010 (P.L.506, No.72), entitled
"An act providing for the criteria for independent
contractors in the construction industry and for the powers
and duties of the Department of Labor and Industry and the
Secretary of Labor and Industry; and imposing penalties,"
further providing for improper classification of employees
and for criminal penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 4(a) and 5 of the act of October 13,
2010 (P.L.506, No.72), known as the Construction Workplace
Misclassification Act, are amended to read:
Section 4. Improper classification of employees.
(a) Violation.--An employer, or officer or agent of an
employer, shall be in violation of this act and shall be subject
to the penalties, remedies and actions contained in this act if
the employer, officer or agent:
(1) fails to properly classify an individual as an
employee for purposes of the Workers' Compensation Act and
fails to provide the coverage required under the Workers'
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Compensation Act; [or]
(2) fails to properly classify an individual as an
employee for purposes of the Unemployment Compensation Law
and fails to pay contributions, reimbursements or other
amounts required to be paid under the Unemployment
Compensation Law[.]; or
(3) is convicted of an offense under 18 Pa.C.S. ยง 4107
(relating to deceptive or fraudulent business practices)
reasonably related to a violation under paragraph (1) or (2).
* * *
Section 5. Criminal penalties.
(a) Grading.--An employer, or officer or agent of an
employer, that intentionally violates section [4(a)] 4(a)(1) or
(2) commits:
(1) A misdemeanor of the [third] second degree for a
first offense.
(2) A misdemeanor of the [second] first degree for a
second or subsequent offense.
[(b) Summary offense.--An employer, or officer or agent of
an employer, that negligently fails to properly classify an
individual as an employee under section 4(a) commits a summary
offense and shall, upon conviction, be sentenced to pay a fine
of not more than $1,000. Evidence of a prior conviction under
this subsection shall be admissible as evidence of intent under
subsection (a).]
(b.1) Debarment.--A person sentenced under subsection (a)
shall be prohibited from contracting with or in any manner doing
business with the Commonwealth for a period of five years.
(c) Concurrent jurisdiction.--
(1) The Attorney General shall have concurrent
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prosecutorial jurisdiction with the district attorney of the
appropriate county for violations under this section and any
offense arising out of the activity prohibited by this
section.
(2) No person charged with a violation of this section
by the Attorney General shall have standing to challenge the
authority of the Attorney General to prosecute the case, and
if a challenge is made, the challenge shall be dismissed, and
no relief shall be available in the courts of this
Commonwealth to the person making the challenge.
Section 2. This act shall apply to offenses committed and
sentences imposed on and after the effective date of this
section.
Section 3. This act shall take effect in 60 days.
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