How HB 721 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends the Construction Workplace Misclassification Act to introduce new definitions, enhance penalties for violations, establish a private right of action for employees, and clarify the provisions regarding retaliation and debarment of contractors.

• Section 2

  "SUCCESSOR ENTITY." AN ENTITY THAT MEETS ANY OF THE FOLLOWING CRITERIA: ...

  Adds a definition for 'Successor Entity' which clarifies what constitutes an entity that takes over from a previous employer.

• Section 4(d)

  [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]

  Removes the requirement for probable cause before referring violations to the Attorney General.

• Section 4(e)

  [intentionally] contracts or renews a contract with an employer [knowing the employer intends to misclassify] → knowing the employer will IS LIKELY TO

  Changes the standard for liability from intentional knowledge to likelihood of misclassification.

• Section 5(a)

  [An employer, or officer or agent of an employer, that intentionally violates section 4(a) commits: ...] → An employer, or officer or agent of an employer, who knowingly violates section 4(a) commits:

  Modifies the grading of penalties for violations to focus on knowing violations rather than intentional violations.

• Section 5(d)

  if the judgment of sentence was imposed before the defendant is → FINDING OF GUILT WAS RENDERED BEFORE THE DEFENDANT IS FOUND GUILTY OF

  Clarifies the timeline for what constitutes a 'prior offense' in relation to convictions.

• Section 5.1

  (a) Action.--An employee who has been misclassified in violation of this act ...

  Establishes a private right of action for employees who are misclassified or retaliated against.

• Section 6(a)

  [may assess] → Shall assess and collect

  Changes the language to make it mandatory for the Secretary to assess administrative penalties for violations.

• Section 6(c)(1)

  prohibit a contractor, subcontractor or person from bidding on or participating in a public work project → debar, for a period of at least three years, a contractor, subcontractor or person from contracting with or participating in contracts for public work

  Increases the penalty for intentional violations by mandating a debarment period.

• Section 10(a)

  [discriminate in any manner or take adverse action against any person in retaliation for exercising rights protected under this act. ...] → discharge, threaten or otherwise retaliate or discriminate in any manner against an employee regarding compensation or other terms or conditions of employment because the employee:

  Clarifies and broadens the protections against retaliation for employees.

• Section 11

  [for job sites]

  Removes the specification that the poster is only for job sites, making it applicable to all places of business.