I plan to reintroduce former House Bill 1751 to strengthen and improve the Construction Workplace Misclassification Act (Act 72 of 2010). Last session, this legislation passed the House with bipartisan support (121-82).

Our construction industry is filled with hardworking professionals. These individuals work tirelessly, every day, to build our homes, offices, hospitals, roads, and other crucial infrastructure. According to data from the Pennsylvania Department of Labor and Industry, the construction industry provides over 260,000 jobs in Pennsylvania. Additionally, data from the U.S. Bureau of Economic Analysis shows that the construction industry in Pennsylvania contributes over $38 billion to the state’s GDP (gross domestic product). Construction jobs should be good, family-sustaining jobs with benefits for Pennsylvanians; however, some contractors intentionally misclassify construction workers as independent contractors.

This misclassification cheats workers out of salaries, benefits, and important worker protections like unemployment and workers' compensation. Misclassified workers do not qualify for sick pay, are not guaranteed paid time off, and are not protected by OSHA. Despite completing the exact same work, misclassified workers receive fewer protections than properly classified workers.

Misclassification also cheats Pennsylvania taxpayers of revenue. The Keystone Research Center estimates that misclassification of construction employees in Pennsylvania deprives Pennsylvania of $83 million in worker compensation premiums, $47 million in state income taxes, and $11 million in unemployment compensation taxes.

My legislation would strengthen and improve Act 72 by increasing penalties on contractors who misclassify workers and expanding the purview of the Attorney General and District Attorneys to investigate and prosecute worker misclassification. Additionally, my bill permits misclassified workers to pursue a private right of action.

Misclassifying employees as independent contractors robs workers and Pennsylvania taxpayers. Employers who misclassify their workers do so to take advantage of them, steal workers’ wages and benefits, and ignore proper safety protocols and training. My legislation will prevent the continued exploitation of workers through misclassification and strengthen our existing law to protect Pennsylvania’s construction workers.