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04/22/2024 01:02 PM
Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: October 4, 2021 03:32 PM
From: Representative Anthony M. DeLuca
To: All House members
Subject: Penalties for misclassification of workers
In the near future I intend to re-introduce legislation to address penalties for misclassifying workers to avoid paying worker’s compensation and unemployment compensation.
Imagine a business classifies workers as common laborers to secure a contract as the low bidder, but the workers are actually skilled laborers. As a result, the employer would pay a lower figure into the workers and unemployment compensation systems. Had they been honest, a higher payment into the system or in insurance payments, would have been required. When businesses do not pay their fair share, hardworking taxpayers feel the burden.
My legislation would amend the Construction Workplace Misclassification Act, eliminating the summary offense of some illegal acts and increasing the grading of others, including second offenses. The bill would also bar any individual from doing any business with the state for 5 years in any form, and through any business entity, if convicted. This would ensure that those found guilty could not simply create a new business to do business with the state. The five-year ban would apply to individuals, not their business entity.
We need real consequences for those that misclassify workers, ensuring proper contributions to the worker’s and unemployment compensation systems, protecting taxpayers, and leveling the playing field for all businesses. Please join me in co-sponsoring this legislation.

Introduced as HB2160