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01/17/2022 06:26 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20210&cosponId=36193
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Senate of Pennsylvania
Session of 2021 - 2022 Regular Session

MEMORANDUM

Posted: September 14, 2021 09:12 AM
From: Senator Nikil Saval and Sen. Christine M. Tartaglione
To: All Senate members
Subject: General Contractor Responsibility Bill
 
In the near future, we will be introducing a General Contractor Responsibility Bill. Modeled after similar laws in Maryland and New Jersey, this legislation holds general contractors responsible for paying any employees up and down a worksite, even if they are hired by a subcontractor.  In doing so, it offers subcontracted employees additional means of collecting when they are not paid for the work they have done. 


Although most general and subcontractors follow wage and hour laws, workers in the industry are often not paid for all of their work. General contractors sometimes hire subcontractors who either misclassify workers or fail to pay accurate wages outright. Those workers, in turn, have little recourse. Subcontractors might have few assets or can declare bankruptcy to avoid money judgments entered against them. Cumulatively, such practices undermine good businesses and efforts to be fiscally responsible. 


This legislation would allow workers who were not paid by subcontractors to seek their wages from the general contractor, making it more likely that these workers will be paid for their labor. It also provides a way for general contractors to recoup these wages from subcontractors who are found to have acted irresponsibly. Our bill underscores commonsense conventions and affirms practices widely held by quality contractors. These practices include keeping track of the subcontractors working on a particular job site, vetting subcontractors to weed out unscrupulous actors, and recording the payment of wages. 
 

This bill will ensure workers are paid for their labor while highlighting the work of good business owners. It will also help increase demand for businesses with clean records and no past labor violations. Last, should general contractors hold government contracts, this bill ensures that public funds are properly used on a given project. Please join us in sponsoring this important piece of legislation. 



Introduced as SB879