HB 678 — An Act providing for the registration of labor brokers; imposing duties on the Department of Labor and Industry and the Secretary of Labor and Industry; establishing the Labor Broker Registration Account; and imposing penalties.

PRIOR PRINTER'S NO.

692 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

3057678 THE2025 GENERALINTRODUCED ASSEMBLYBY OFMcNEILL, PENNSYLVANIAFREEMAN, HOUSEHILL-EVANS, BILLWAXMAN, SessionGIRAL, PIELLI, SANCHEZ, DEASY, SCHLOSSBERG AND NEILSON, FEBRUARY 20, 2025 REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 20, 2025 AN ACT Providing for the registration of No.labor brokers;

678 2025 INTRODUCED BY McNEILL, FREEMAN, HILL-EVANS, WAXMAN, GIRAL, PIELLI, SANCHEZ, DEASY, SCHLOSSBERG, NEILSON, MALAGARI AND GREEN, FEBRUARY 20, 2025 AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 23, 2026 AN ACT Providing for the registration of labor brokers;

SECTIONSection 17.

EDUCATIONAL EFFORTS.

<-- Section 17 18.

<-- Section 1818. 19.

<-- The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

"Construction." Erection, reconstruction, demolition, alteration, modification, custom fabrication, building, assembling, site preparation and repair OR MAINTENANCE work done <-- on any real property or premises under contract, whether or not the work is for a public body and paid for from public funds.

"CONTRACTOR." A PERSON THAT, IN ANY CAPACITY FOR <-- COMPENSATION, ENGAGES IN CONSTRUCTION.

THE TERM INCLUDES A SUBCONTRACTOR OF ANY TIER.

20250HB0678PN3057 - 2 - (2) The debarment shall include all divisions or other organizational elements of a contractor or subcontractor unless limited by its terms to specific divisions or organizational elements.

20250HB0678PN0692 - 2 - (3) The debarment may apply to affiliates or other persons or entities associated with the contractor, subcontractor or individual if they are specifically named and given written notice of the debarment and an opportunity to appeal.

20250HB0678PN3057 - 3 - "Employee." As follows:

20250HB0678PN0692 - 3 - (i) In relation to workers' compensation, as the term "employe" is defined in section 104 of the Workers' Compensation Act.

(1) An entity or individual that supplies construction workers to an employer OR CONTRACTOR for the performance of <-- construction work or for a construction project of the employer OR CONTRACTOR on a site in this Commonwealth in <-- exchange for compensation from the employeremployer, OR CONTRACTOR, <-- provided that the completion of the project is directed by the employer OR CONTRACTOR and not the entity or individual.

<-- (2) The term does not include a construction 20250HB0678PN3057 - 4 - subcontractor that is responsible for and carries out all of the following:

20250HB0678PN0692 - 4 - (ii) Obtaining necessary licenses or permits to perform construction services under the entity's or individual's name.

"Person." An individual, firm, sole proprietorship, <-- partnership, corporation, association or other entity.

(2) A political subdivision, including a county, city, borough, incorporated town, township or municipal authority, 20250HB0678PN3057 - 5 - of this Commonwealth.

"Secretary." The Secretary of Labor and Industry of the 20250HB0678PN0692 - 5 - Commonwealth or the authorized representative of the Secretary of Labor and Industry of the Commonwealth.

"SUBCONTRACTOR." A PERSON THAT HAS CONTRACTED TO FURNISH <-- LABOR OR MATERIALS TO OR HAS PERFORMED LABOR FOR A CONTRACTOR OR ANOTHER SUBCONTRACTOR IN CONNECTION WITH A CONTRACT.

THE TERM DOES NOT INCLUDE A PERSON THAT ONLY SUPPLIES MATERIAL FOR A CONSTRUCTION PROJECT.

A ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, A person <-- may not hold oneself out or engage in any act as a labor broker without satisfying the registration requirements under this act.

The department shall develop and maintain a list of completed registrations under this act on the department's publicly 20250HB0678PN3057 - 6 - accessible Internet website, which shall include each labor broker's legal business name, any assumed business name, business address, verification number and verification expiration date.

20250HB0678PN0692 - 6 - (1) For any individual, sole proprietor, primary owner or officer of a business entity, all of the following information:

(B) the applicant, even if doing so as part of a 20250HB0678PN3057 - 7 - business entity application, has ever been found to have misclassified employees as independent contractors by the department, any other state or political subdivision or the United States Department of Labor;

and (C) the applicant's certification or a similar certificate or license issued by any other state or political subdivision has ever been revoked or suspended pursuant to an order issued by a court of competent jurisdiction and, if so, the current status 20250HB0678PN0692 - 7 - of the certification or similar certificate or license.

(4) For any individual, sole proprietor, primary owner or officer, including a chief executive officer, chief financial officer, chief operating officer or an equivalent officer, of a business entity, the name of all other persons with an ownership interest in the applicant that are not 20250HB0678PN3057 - 8 - identified under paragraph (1).

20250HB0678PN0692 - 8 - (9) A signed statement by the applicant that the information in the application is true and accurate and any individual signing the application is an authorized agent of the applicant subject to the penalties under 18 Pa.C.S.

A labor broker shall update its registration within 30 days of any change in personal or business information required to be 20250HB0678PN3057 - 9 - provided to the department under this act.

(a) Establishment.--The Labor Broker Registration Account is established as a restricted revenue, interest-bearing account in 20250HB0678PN0692 - 9 - the General Fund.

(a) Specific prohibitions.--On or after the effective date of this subsection, a person who holds oneself out THAT <-- REPRESENTS ITSELF, or engages in any act,act as a labor broker may <-- not do any of the following:

20250HB0678PN3057 - 10 - (i) without first completing the registration required under this act;

(b) Verification.--A person seeking to contract or engage 20250HB0678PN0692 - 10 - with a purported labor broker shall verify the registration of the purported labor broker using the verification system described in section 5.

20250HB0678PN3057 - 11 - (2) Subpoena witnesses, administer oaths, examine witnesses and copy or compel the production of records, contracts and other documents that are necessary and appropriate to the enforcement of this act.

(1) A person that violates OR HAS KNOWLEDGE OF A <-- VIOLATION OF section 12(a)(1) or (2) shall be subject to the following:

(i) For a first violation, the department shall 20250HB0678PN0692 - 11 - issue a warning letter to the person detailing the omission VIOLATION and provide 30 days to correct the <-- violation.

WARNING(ii) LETTERFor TOa <--second THEor PERSONany DETAILINGsubsequent THEviolations, VIOLATIONthe ANDdepartment PROVIDEshall 30issue DAYSa TOfine CORRECTnot THEto VIOLATION.exceed $25,000 per day per worker provided by the unregistered labor broker.