PRIOR PRINTER'S NO.

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

1330721 THE2025 GENERALINTRODUCED ASSEMBLYBY OFDONAHUE, PENNSYLVANIAPROKOPIAK, HOUSESANCHEZ, BILLFREEMAN, SessionPROBST, WARREN, GALLAGHER, CERRATO AND MALAGARI, FEBRUARY 25, 2025N, REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 25, 2025 AN ACT Amending the act of No.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;

721and 2025imposing INTRODUCEDpenalties," BYfurther DONAHUE, PROKOPIAK, SANCHEZ, FREEMAN, PROBST, WARREN, GALLAGHER, CERRATO, MALAGARI, BOYD AND CIRESI,ILSON, FEBRUARY 25, 2025 AS REPRESENTATIVES, AS AMENDED, APRIL 9, 2025TRY, HOUSE OF AN ACT Amending the act of October 13, 2010 (P.L.506, No.72), entitled "An act providing for thedefinitions, criteria for independentimproper contractorsclassification inof theemployees construction industry and for thecriminal powerspenalties; and duties of the Department of Labor and Industry and the Secretary of Labor and Industry;

and imposing penalties," further providing for definitions, for improper providing for private right of action;

further providing for administrative penalties, for retaliation for action prohibited, for availability of information, for use of penalty funds and for funding;

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

(1) HAS ONE OR MORE OF THE SAME PRINCIPALS OR OFFICERS AS THE EMPLOYER AGAINST WHOM THE ORDER WAS ISSUED.

(2) PERFORMS SIMILAR WORK WITHIN THE SAME GEOGRAPHICAL AREA.

(3) OCCUPIES THE SAME PREMISES.

(4) SHARES THE SAME TELEPHONE NUMBER OR FACSIMILE NUMBER.

(5) HAS THE SAME EMAIL ADDRESS OR INTERNET WEBSITE.

(6) EMPLOYS SUBSTANTIALLY THE SAME WORKFORCE OR ADMINISTRATIVE EMPLOYEES, OR BOTH.

(7) UTILIZES THE SAME TOOLS, EQUIPMENT OR FACILITIES.

(8) EMPLOYS OR ENGAGES THE SERVICES OF ANY PERSON OR PERSONS INVOLVED IN THE DIRECTION OR CONTROL OF THE OTHER.

(9) LISTS SUBSTANTIALLY THE SAME WORK EXPERIENCE.

* * * 20250HB0721PN1330 - 2 - (d) Enforcement.-- (1) 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] that an employer has failed to properly classify an individual as an employee for the purposes of this act, the secretary shall impose administrative penalties under section 6.

The secretary shall make <-- a referral if the employer has previously been found in violation of this act in another matter.

(e) Acting in concert with other parties.--A party that does 20250HB0721PN0742 - 2 - not meet the definition of "employer" in section 2, but which [intentionally] contracts or renews a contract with an employer [knowing the employer intends to misclassify] to supply labor for construction knowing the employer will IS LIKELY TO <-- misclassify the supplied 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.

(a) Grading.--[An employer, or officer or agent of an 20250HB0721PN1330 - 3 - employer, that intentionally violates section 4(a) commits:

"Prior offense." A conviction of a violation of section 4, if the judgment of sentence was imposed before the defendant is <-- sentenced for FINDING OF GUILT WAS RENDERED BEFORE THE DEFENDANT <-- IS FOUND GUILTY OF a separate violation of section 4.

20250HB0721PN0742 - 3 - Section 5.1.

20250HB0721PN1330 - 4 - (c) Relief.--If an employee prevails in an action commenced under this section, the employee shall be entitled to the following relief:

20250HB0721PN0742 - 4 - (2) May order a financial audit or tax audit of any relevant prospective records of the person.

20250HB0721PN1330 - 5 - (2) A debarment under paragraph (1) shall apply to the following:

(3) The debarment under paragraph (1) may apply to affiliates or other persons associated with the debarred contractor, subcontractor or person if they are specifically <-- named and given written notice of the debarment and an opportunity to appeal.

THE SECRETARY DETERMINES UNDER THE <-- REQUIREMENTS OF THIS ACT THAT A VIOLATION OF THIS ACT WAS INTENTIONAL.

THIS PARAGRAPH APPLIES TO ANY PARTNER OR OFFICER OF THE CONTRACTOR, SUBCONTRACTOR OR PERSON, AS WELL AS ANY CORPORATION IN WHICH THE CONTRACTOR, SUBCONTRACTOR OR PERSON HAS AN INTEREST AS PARENT, SUBSIDIARY, OFFICER OR AGENT OF THE CORPORATION.

(d) Definitions.--As used in this section, the following <--20250HB0721PN0742 - 5 - words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

(1) Has one or more of the same principals or officers 20250HB0721PN1330 - 6 - as the employer against whom the order was issued.

(1) participates in an investigation, hearing or inquiry 20250HB0721PN0742 - 6 - by the secretary or any governmental authority;

(a.1) Action.--An employee who suffers retaliation or 20250HB0721PN1330 - 7 - discrimination in violation of this section may bring a private right of action under section 5.1.

20250HB0721PN0742 - 7 - (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.] Any sum collected as a penalty, recovered attorney fee or cost associated with any 20250HB0721PN1330 - 8 - investigation or enforcement action under this act shall be deposited into a restricted revenue account created in the General Fund.

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