SB 577 — An Act amending the act of October 13, 2010 (P.L.506, No.72), known as the Construction Workplace Misclassification Act, further providing for definitions, for improper classification of employees and for criminal penalties; providing for private right of action; and further providing for administrative penalties, for retaliation for action prohibited, for availability of information and for funding.

PRIOR PRINTER'S NO.

616 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1156 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

WILLIAMS, FONTANA, KEARNEY, SANTARSIEROHUGHES, COLLETT, HAYWOOD, COSTA, DILLON, CAPPELLETTI, SANTARSIERO, STREET AND STREET,ROBINSON, APRIL 19, 2023N,2023 CAPPELLETTI,SENATOR REFERREDROBINSON, TO LABOR AND INDUSTRY, APRILAS 19,AMENDED, OCTOBER 4, 2023 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 thethes Secretary of Labor and Industry;

and further providing for administrative penalties, for retaliation for action prohibited, for availability of information and for funding.

Section 2 of the act of October 13, 2010 (P.L.506, No.72), known as the Construction Workplace Misclassification Act, is amended by adding a definition <-- DEFINITIONS to read:

<-- Section 2.

* * * "Debar." Action taken by the secretary to prohibit a contractor, subcontractor or individual from contracting with or participating in contracts for State-supervised or State-funded <-- construction PUBLIC WORK PROJECTS and other State procurement <-- contracts for a specified period or permanently.

NOT TO EXCEED <-- THREE YEARS FOR THE FIRST OFFENSE AND FIVE YEARS FOR A SECOND OR SUBSEQUENT OFFENSE.

* * * "PUBLIC WORK." THE TERM SHALL HAVE THE MEANING GIVEN TO IT <-- IN SECTION 2 OF THE ACT OF AUGUST 15, 1961 (P.L.987, NO.442), KNOWN AS THE PENNSYLVANIA PREVAILING WAGE ACT.

* * * (d) Enforcement.-- 20230SB0577PN1156 - 2 - (1) If, subsequent to issuing an order to show cause under subsection (c), the secretary finds [probable cause <-- that an employer has committed[committed a criminal violation of this <-- act, the secretary shall refer the matter to the Office of Attorney General for investigation or] that an employer has <-- violated the Workers' Compensation Act,Act theVIOLATED secretaryTHIS shallACT, 20230SB0577PN0616the -<-- 2secretary -shall impose administrative penalties under section 6.

20230SB0577PN1156 - 3 - (1) A misdemeanor of the third degree for a first offense.

(1) A misdemeanor of the first SECOND degree if the <-- employer has no prior offense under section 4(a).

20230SB0577PN0616 - 3 - (2) A felony of the third degree if the employer has one <-- or more prior offenses under section 4(a).

(2) A MISDEMEANOR OF THE FIRST DEGREE IF THE EMPLOYER <-- HAS ONE PRIOR OFFENSE UNDER SECTION 4(A).

(3) A FELONY OF THE THIRD DEGREE IF THE EMPLOYER HAS TWO OR MORE PRIOR OFFENSES UNDER SECTION 4(A).

(b) Time.--The action must be brought within three years 20230SB0577PN1156 - 4 - from the date that the employee knew of the violation, retaliation or discrimination.

20230SB0577PN0616 - 4 - (4) Other legal and equitable relief the court deems appropriate to make the employee whole.

(a) General rule.--When the secretary finds that a person has violated this act, the secretary may[may [assess]:

<-- (1) Assess SHALL ASSESS and collect civil[civil] <-- ADMINISTRATIVE penalties of not more than $1,000 for the first violation, and not more than $2,500 for each subsequent violation.

(2) Order MAY ORDER a financial audit or tax audit of <-- the person.

* * * (c) Intentional violation.--If the secretary determines that a violation of this act was intentional, the secretary shall debar, for a set period or permanently, a contractor, <-- subcontractor or individual from bidding on or participating in State-supervised construction and other State procurement 20230SB0577PN1156 - 5 - contracts.

SectionTHE 10.EMPLOYER.

<-- Section 10.

(1) participates in an investigation, hearing or inquiry 20230SB0577PN0616 - 5 - by the secretary or any governmental authority;

Every employer subject to this act shall keep a summary of this act and any regulations issued under this act applicable to the employer, posted in a conspicuous place where employees normally 20230SB0577PN1156 - 6 - pass and can read it, both on job sites and in all places of business.

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