I will soon be reintroducing former House Bill 1748, which requires labor brokers to register with the state before conducting business in Pennsylvania. Last session, this bill passed the House with bipartisan support.

In 2022, the Joint Task Force on Misclassification of Employees released its final report, which highlighted the role that unregulated labor brokers play in misclassifying workers in Pennsylvania. Misclassifying employees as independent contractors robs the workers of important employment benefits and protections and reduces state tax revenue.

Labor brokers hire employees and then sell the services of those employees to another employer who needs temporary employees. These labor brokers operate in many industries but are most prominent in the construction industry.

Some of the most unscrupulous labor brokers in the construction industry pay workers in cash, which leaves no record of the wages that are paid nor the taxes that are deducted, if any. Part of the task force’s recommendations in their final report was to require labor brokers who operate in Pennsylvania to be registered as a safeguard to prevent worker misclassification.

My legislation would require all labor brokers operating in Pennsylvania to be registered with the Department of Labor and Industry. The bill not only penalizes labor brokers for operating without proper registration, but it would also penalize those who knowingly contract with unregistered labor brokers.

Please join me in co-sponsoring this important legislation to prevent misclassification of employees and protect workers’ rights.
 
Previous co-sponsors of former House Bill 1748: McNeill, Daley, Krajewski, Pielli, Khan, and Sanchez