DE HB221

Expands the Workplace Fraud Act to apply to all employers in Delaware, except those in domestic service, agriculture, fishing, and hunting industries, removing the previous limitation to construction services only.

Prohibits employers from improperly classifying employees as independent contractors and establishes an employer-employee relationship presumption unless the employer demonstrates the worker is exempt or truly independent.

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

Prohibits employers from knowingly subcontracting with entities that improperly classify their employees as independent contractors, and expands the definition of "knowledge" to include deliberate ignorance or reckless disregard.

Establishes a formal appeal process allowing employers 20 days to appeal initial Department determinations to the Secretary of Labor, with further appeals to Superior Court under the Administrative Procedures Act, and extends the investigation timeline from 90 to 180 days.