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PA SB586

Bill

Status

Introduced

4/9/2025

Primary Sponsor

Nick Pisciottano

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Establishes the "Workplace Misclassification Act" requiring workers in non-construction industries to meet specific criteria to qualify as independent contractors, including having a written project-specific contract, being free from employer control, and operating an independently established business with separate location and proprietary interest

  • Imposes criminal penalties for intentional misclassification: first-degree misdemeanor for first offense, third-degree felony for repeat offenses; negligent misclassification carries up to $1,000 fine as a summary offense

  • Authorizes administrative penalties of up to $1,000 for first violations and $2,500 for subsequent violations, with mandatory debarment from public contracts for at least three years for intentional violations

  • Grants misclassified employees a private right of action with a 3-year statute of limitations, entitling prevailing employees to reinstatement, triple damages on wages and benefits, and attorney fees

  • Empowers the Secretary of Labor and Industry to issue stop-work orders through court petition, assess $1,000 per day penalties for violations of such orders, and requires annual reporting to the General Assembly on enforcement activities

Legislative Description

Providing for criteria for independent contractors and for powers and duties of the Department of Labor and Industry and the Secretary of Labor and Industry; and imposing penalties.

Last Action

Referred to Labor & Industry

4/9/2025

Committee Referrals

Labor & Industry4/9/2025

Full Bill Text

No bill text available