DE HB230

Creates new Chapter 35 "Workplace Fraud Act" in Delaware Code Title 19 to regulate independent contractor misclassification in the construction services industry.

Establishes presumption that workers are employees unless employer demonstrates they are exempt persons or meet strict criteria: free from control/direction, customarily engaged in independent trade, and work outside usual course of employer's business.

Imposes civil penalties of $1,000-$5,000 per employee for misclassification violations; employers with two violations in two years face either $20,000 per employee penalty or 5-year debarment from public contracts.

Requires contractors to provide written notice in English and Spanish to all workers classified as independent contractors explaining implications of classification; failure to notify results in $500 penalty per individual.

Grants workers right to sue for treble damages for lost wages and benefits within 3 years of violation, and requires employer record-keeping for three years documenting worker names, classifications, hours, and pay rates.