Regular Session 2017-2018 House Bill 2442 P.N. 3933

PRINTER'S NO. 3933

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2442

Session of

2018

INTRODUCED BY SNYDER, DAVIS, GAINEY, D. MILLER, MULLERY,

DRISCOLL, SCHLOSSBERG, HARKINS, BARRAR, MARSHALL, GALLOWAY,

NEILSON, HILL-EVANS AND CALTAGIRONE, SEPTEMBER 5, 2018

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, SEPTEMBER 5, 2018

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.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 4 of the act of October 13, 2010

(P.L.506, No.72), known as the Construction Workplace

Misclassification Act, is 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'

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.

(b) Separate offenses.--Each individual who is not properly

classified as an employee shall be the basis of a separate

violation of this section.

(b.1) Complaint.--If the secretary receives a written

complaint indicating that a person has violated this act, the

secretary shall within 15 days of the receipt of the complaint

respond in writing to the person who filed the complaint that

the complaint has been received.

(1) If the secretary receives a written complaint or

information indicating that any person has violated this act,

the secretary [may] shall, unless the complaint appears to be

frivolous, investigate the matter and issue an order to show

cause why the person should not be found in violation of this

act.

(2) A person served with an order to show cause shall

have a period of 20 days from the date the order is served to

file an answer in writing.

(3) If the person fails to file a timely and adequate

answer to the order to show cause, the secretary may,

following notice and hearing, do any of the following:

(i) petition a court of competent jurisdiction to

issue a stop-work order as provided in section 7; or

(ii) immediately assess penalties as provided in

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section 6.

(d) Enforcement.--If, subsequent to issuing an order to show

cause under subsection (c), the secretary finds probable cause

that an employer has committed a criminal violation of this act,

the secretary shall refer the matter to the Office of Attorney

General for investigation or impose administrative penalties

under section 6.

(e) Acting in concert with other parties.--A party that does

not meet the definition of "employer" in section 2, but which

intentionally contracts with an employer knowing the employer

intends to misclassify employees in violation of this act, shall

be subject to the same penalties, remedies or other actions as

the employer found to be in violation of this act.

(f) Defense.--It shall be a defense to an alleged violation

of this section if the person for whom the services are

performed in good faith believed that the individual who

performed the services qualified as an independent contractor at

the time the services were performed.

Section 2. This act shall take effect in 60 days.

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