HB 221 Summary

• Expands the Workplace Fraud Act to apply to all employers in Delaware, removing the limitation to the construction services industry only.

• Prohibits employers from improperly classifying employees as independent contractors and requires presumption of an employer-employee relationship unless the employer proves otherwise.

• Holds controlling individuals (owners, officers, managers, partners, and chief operating officers) jointly and severally liable with business entities for knowing violations of the Act.

• Prohibits employers from knowingly subcontracting with entities that improperly classify their employees as independent contractors.

• Extends the appeal period for violation determinations from 90 days to 180 days and establishes a formal appeals process with the Secretary of Labor and potential administrative review.