H2400B3761A07258       VDL:CMM 06/03/08    #90             A07258
                       AMENDMENTS TO HOUSE BILL NO. 2400
                                    Sponsor:  REPRESENTATIVE LENTZ
                                           Printer's No. 3761

     1       Amend Sec. 2, page 2, line 7, by inserting after "BENEFITS,"
     2               including overtime pay,
     3       Amend Sec. 3, page 2, line 21, by inserting after "ANY"
     4               real
     5       Amend Sec. 3, page 3, by inserting between lines 2 and 3
     6       "Minimum Wage Act."  The act of January 17, 1968 (P.L.11,
     7    No.5), known as The Minimum Wage Act of 1968.

     8       Amend Sec. 3, page 3, by inserting between lines 4 and 5
     9       "The Workers' Compensation Act."  The act of June 2, 1915
    10    (P.L.736, No.338), known as the Workers' Compensation Act.
    11       "Unemployment Compensation Law."  The act of December 5, 1936
    12    (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
    13    Compensation Law.
    14       "Wage Payment and Collection Law."  The act of July 14, 1961
    15    (P.L.637, No.329), known as the Wage Payment and Collection Law.

    16       Amend Sec. 4, page 3, line 25, by striking out "THIS ACT,"
    17    and inserting
    18               the Minimum Wage Act, the Wage Payment and Collection
    19               Law, the Unemployment Compensation Law and the
    20               Workers' Compensation Act,

    21       Amend Sec. 4, page 3, lines 29 and 30, by striking out "CAN
    22    DEMONSTRATE BY SUBSTANTIAL CREDIBLE EVIDENCE THAT THE INDIVIDUAL
    23    IS" and inserting
    24               has been and will continue to be
    25       Amend Sec. 4, page 4, line 27, by inserting after "INCLUDES"
    26               income and losses from
    27       Amend Sec. 4, page 5, line 8, by inserting after

     1    "ARRANGEMENT"
     2               with a person other than the employer
     3       Amend Sec. 4, page 5, lines 27 through 30, by striking out
     4    "ACT OF JUNE 2, 1915" in line 27, all of lines 28 through 30 and
     5    inserting
     6               Unemployment Compensation Law or the Workers'
     7               Compensation Act.

     8       Amend Sec. 5, page 6, lines 4 through 13, by striking out all
     9    of said lines and inserting
    10       (a)  Offense defined.--An employer, or officer or agent of an
    11    employer, commits a violation of this act if the employer,
    12    officer or agent fails to properly classify the individual as an
    13    employee with the intent of evading the requirements of the
    14    Minimum Wage Act, the Wage Payment and Collection Law, the
    15    Unemployment Compensation Law or the Workers' Compensation Act
    16    and shall be subject to the penalties, remedies or actions
    17    contained in this act.

    18       Amend Sec. 6, page 6, line 27, by striking out all of said
    19    line and inserting
    20       (a)  Knowing violation.--
    21           (1)  An employer, or officer or agent

    22       Amend Sec. 6, page 7, lines 5 through 22, by striking out all
    23    of said lines and inserting
    24               (i)  be sentenced to pay a fine of not more than
    25           $15,000 or imprisonment for not more than three and one-
    26           half years, or both, for a first offense; and
    27               (ii)  be sentenced to pay a fine of not more than
    28           $30,000 or imprisonment for not more than seven years, or
    29           both, for a subsequent offense.
    30           (2)  An employer, or officer or agent of the employer,
    31       that, after being sentenced under paragraph (1)(i), knowingly
    32       violates section 5(a) may be subject to a stop-work order, as
    33       determined by the secretary pursuant to section 8.
    34       (b)  Summary offense.--An employer, or officer or agent of
    35    the employer, that negligently fails to properly classify an
    36    individual as an employee under section 5(a) commits a summary
    37    offense and shall, upon conviction, be sentenced to pay a fine
    38    of not more than $1,000. Evidence of a prior conviction under
    39    this subsection shall be admissible as evidence of knowledge
    40    under subsection (a).

    41       Amend Sec. 7, page 7, lines 24 through 29, by striking out
    42    all of lines 24 through 28 and "conviction for a violation of

    HB2400A07258                     - 2 -     

     1    this act, the" in line 29 and inserting
     2       (a)  Debarment and order to show cause.--If the secretary
     3    receives information indicating that an employer, or officer or
     4    agent of the employer, has knowingly and intentionally violated
     5    this act, or has been convicted of a violation of this act, the
     6    secretary shall issue an order to show cause why the individual
     7    should not be found in violation of this act and subject to
     8    debarment. An individual served with an order to show cause
     9    shall have a period of 20 days from the date the order is served
    10    to file an answer in writing. If the individual fails to file a
    11    timely and adequate answer to the order to show cause, the
    12    secretary shall issue an immediate debarment or immediately
    13    assess penalties as provided in this section, or both. The

    14       Amend Sec. 7, page 8, line 20, by inserting after "KNOWINGLY"
    15               and intentionally
    16       Amend Sec. 8, page 9, line 1, by inserting after "KNOWINGLY"
    17               and intentionally
    18       Amend Sec. 14, page 11, line 16, by inserting after
    19    "implement"
    20               and administer
    21       Amend Bill, page 11, by  inserting between lines 24 and 25
    22    Section 16.  Applicability.
    23       This act shall not be construed to bring an individual within
    24    the scope of the Unemployment Compensation Law or the Workers'
    25    Compensation Act if the individual is excluded from the scope of
    26    the appropriate statute.
    27    Section 17.  Severability.
    28       The provisions of this act are severable. If any provision of
    29    this act or its application to any individual or circumstance is
    30    held invalid, the invalidity shall not affect other provisions
    31    or applications of this act which can be given effect without
    32    the invalid provision or application.
    33    Section 18.  Construction of law.
    34       Nothing contained in this act shall be construed to impair or
    35    affect in any manner the ability of the department to carry out
    36    the powers and duties prescribed by the laws of this
    37    Commonwealth or to adopt measures to improve the enforcement of
    38    other laws of this Commonwealth.

    39       Amend Sec. 16, page 11, line 25, by striking out "16" and
    40    inserting
    41               19


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