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PA HB721

Bill

Status

Engrossed

5/13/2025

Primary Sponsor

Kyle Donahue

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Amends the Construction Workplace Misclassification Act to increase criminal penalties for knowingly misclassifying workers: first offense elevated to first-degree misdemeanor, subsequent offenses to third-degree felony

  • Creates a private right of action allowing misclassified employees to sue in court of common pleas within 3 years, with remedies including reinstatement, triple wages and fringe benefits, and attorney fees

  • Requires mandatory debarment of at least 3 years from public work contracts for intentional violations, including successor entities that share principals, workforce, premises, or other characteristics with the debarred employer

  • Mandates administrative penalties of up to $1,000 for first violations and $2,500 for subsequent violations, with penalty funds deposited into a restricted revenue account for future enforcement

  • Extends liability to parties contracting with employers who are "likely to" misclassify workers (lowered from "knowing the employer intends to"), and strengthens anti-retaliation protections for employees who report violations

Legislative Description

Further providing for definitions, for improper classification of employees and for criminal penalties; 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; and imposing penalties.

Last Action

Referred to Labor & Industry

5/22/2025

Committee Referrals

Labor & Industry5/22/2025
Appropriations5/12/2025
Labor And Industry2/25/2025

Full Bill Text

No bill text available