I will soon be introducing companion legislation to Senator Pisciottano’s SB 586, which establishes the Workplace Misclassification Act.
 
There is nothing new or innovative about misclassifying employees as independent contractors. The Joint Task Force on Misclassification of Employees, established by Act 85 of 2020, estimated that more than 250,000 Pennsylvania workers are improperly classified as independent contractors. Unscrupulous companies misclassify workers to avoid payroll taxes and ignore their responsibility as employers to cut costs.
 
Being misclassified as an independent contractor robs workers of important employment benefits and rights, including minimum wage, unemployment compensation, and workers’ compensation. The task force’s report noted that in 2021, nearly 11,000 misclassified workers were denied workers’ compensation, with estimated losses of more than $150 million. Worker misclassification also robs the Commonwealth of essential tax revenue. The task force estimated that misclassification costs the General Fund up to $124 million a year and the UC Trust Fund $91 million a year.

The task force unanimously recommended a clear solution to address worker misclassification in Pennsylvania: Extend the protections provided in Act 72 of 2020, the Construction Workplace Misclassification Act, to workers in all industries. Act 72 is one of the toughest misclassification laws in the country. It was enacted with bipartisan support and has been successful at protecting workers in the construction industry from misclassification. In 2025, 187 companies violated the law by misclassifying a total of 1,304 workers.

To build on the success of Act 72 and enact the task force’s first recommendation, my legislation will create a standalone law that extends the act’s successful provisions for the construction industry to all of the Commonwealth’s workers. Please cosponsor this important legislation that protects workers, responsible employers, and taxpayers.