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PRINTER'S NO. 1244
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
718
Session of
2019
INTRODUCED BY SNYDER, KORTZ, HILL-EVANS, McNEILL, BERNSTINE,
MILLARD, SCHLOSSBERG, CALTAGIRONE, FREEMAN, DeLUCA, NEILSON,
GALLOWAY, McCLINTON, 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 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'
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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.
(c) [Order] Investigation and order to show cause.--
(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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