HB 933 — An Act amending the act of October 13, 2010 (P.L.506, No.72), known as the Construction Workplace Misclassification Act, further providing for improper classification of employees, for administrative penalties, for stop-work orders, for certain agreement prohibited and for use of penalty funds.

Bill Text

• Printer's No. PN0999 View text Current pdf

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

The bill increases penalties for misclassifying employees and enhances the Department of Labor and Industry's enforcement authority.

• Section 6

  $1,000 → $2,500

  Increases the maximum civil penalty for the first violation of employee misclassification from $1,000 to $2,500.

• Section 6

  $2,500 → $5,000

  Increases the maximum civil penalty for subsequent violations of employee misclassification from $2,500 to $5,000.

• Section 7

  [If the secretary determines, subsequent to the issuance of an order to show cause under section 4(c), that an employer, or officer or agent of the employer, has intentionally failed to properly classify an individual as an employee under section 4(a), the secretary may petition a court of competent jurisdiction to issue a stop-work order requiring the cessation of work by individuals who are improperly classified within 24 hours of the effective date of the order, or in the event that a majority of individuals working at a site are improperly classified, requiring the cessation of all business operations of that employer at each site at which a violation occurred within 24 hours of the effective date of the order. (2) The order shall take effect when served upon the employer, or for a particular employer worksite, when served at the worksite. The order shall remain in effect until the court issues an order releasing the stop-work order or upon finding that the employer, or officer or agent of the employer, is no longer in violation of this act. (3) An order releasing a stop-work order may include a requirement that the employer file with the department periodic reports for a probationary period that shall not exceed two years demonstrating the employer's continued compliance with this act.] → If the department determines that an employer, or officer or agent of the employer, has intentionally failed to properly classify an individual as an employee under section 4(a), the department may issue an order requiring the cessation of construction. The following applies to the stop-work order: (1) The order may require satisfaction of conditions necessary to ensure that the employer complies with this act. (2) The order shall take effect when served upon the employer by first class mail or posting at the employer's worksite. (3) The order shall remain in effect until released by the department or a court of competent jurisdiction. (4) The order shall be effective against a successor entity that: (i) has one or more of the same principals or officers as the employer against whom the order was issued; and (ii) is engaged in construction. (5) An order releasing a stop-work order may include a requirement that the employer file with the department periodic reports for a probationary period that may not exceed two years demonstrating the employer's continued compliance with this act.

  Changes the process for issuing stop-work orders to allow the Department of Labor and Industry to directly issue them and broadens the applicability to successor entities.

• Section 9

  $1,000 → $2,500

  Increases the minimum administrative fine for violations of prohibited agreements from $1,000 to $2,500.

• Section 9

  $2,500 → $5,000

  Increases the maximum administrative fine for violations of prohibited agreements from $2,500 to $5,000.

• Section 12

  [paid into] → divided equally between

  Changes the distribution of penalty funds from being solely paid into specified funds to being divided equally among specified funds for enforcement.

Action History

1. March 17, 2025

   Referred to Labor & Industry

Sponsors

• Patrick J. Harkins · Primary
• Jeanne McNeill · Cosponsor
• Chris Pielli · Cosponsor
• Ben Waxman · Cosponsor
• Tarah Probst · Cosponsor
• Tim Brennan · Cosponsor
• Joe Webster · Cosponsor
• Jose Giral · Cosponsor
• Emily Kinkead · Cosponsor
• Christopher M. Rabb · Cosponsor
• Robert E. Merski · Cosponsor
• Heather Boyd · Cosponsor
• Ed Neilson · Cosponsor
• Carol Hill-Evans · Cosponsor
• Tarik Khan · Cosponsor
• Danielle Friel Otten · Cosponsor
• John C. Inglis III · Cosponsor
• Benjamin V. Sanchez · Cosponsor
• Melissa Cerrato · Cosponsor
• Daniel J. Deasy · Cosponsor
• Joe Ciresi · Cosponsor
• Perry S. Warren · Cosponsor

Subjects