PRINTER'S NO. 1243
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
717
Session of
2019
INTRODUCED BY MULLERY, MURT, HILL-EVANS, McNEILL, T. DAVIS,
MILLARD, CALTAGIRONE, SCHLOSSBERG, ISAACSON, FREEMAN, DALEY,
NEILSON, CIRESI, GALLOWAY, GAINEY AND D. MILLER,
APRIL 5, 2019
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 5, 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 administrative penalties, for stop-work
orders, for certain agreement prohibited and for use of
penalty funds.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 6, 7(c), 9 and 12 of the act of October
13, 2010 (P.L.506, No.72), known as the Construction Workplace
Misclassification Act, are amended to read:
Section 6. Administrative penalties.
(a) General rule.--When the secretary finds that a person
has violated this act, the secretary may assess and collect
civil penalties of not more than [$1,000] $2,500 for the first
violation, and not more than [$2,500] $5,000 for each subsequent
violation.
(b) Factors to be considered.--When determining the amount
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of the penalty to be imposed, the secretary shall consider
factors including, but not limited to:
(1) The history of previous violations by the employer.
(2) The seriousness of the violation.
(3) The good faith of the employer.
(4) The size of the employer's business.
Section 7. Stop-work orders.
* * *
(c) Penalty.--The court shall assess a penalty of [$1,000]
$2,500 per day against an employer for each day that the
employer conducts business operations that are in violation of a
stop-work order issued under this section.
Section 9. Certain agreement prohibited.
(a) Violation.--No person shall require or demand that an
individual enter into an agreement or sign a document which
results in the improper classification of that individual as an
independent contractor.
(b) Penalty.--A violation of subsection (a) shall be
punishable by an administrative fine of not less than [$1,000]
$2,500 and not more than [$2,500] $5,000. Each violation shall
be considered a separate offense under this section.
Section 12. Use of penalty funds.
Any sum collected as a penalty under:
(1) Sections 6, 7 and 9 for a violation of section 4(a)
(1) shall be [paid into] divided equally between the Workers'
Compensation Administration Fund and the department for costs
related to enforcement.
(2) Sections 6, 7 and 9 for a violation of section 4(a)
(2) shall be [paid into] divided equally between the Special
Administration Fund created under section 601.1 of the
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Unemployment Compensation Law and the department for costs
related to enforcement.
(3) Section 9 for a violation of any other provision of
this act shall be divided equally between the Workers'
Compensation Administration Fund [and], the Special
Administration Fund and the department for costs related to
enforcement.
Section 2. This act shall take effect in 60 days.
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