PRINTER'S NO. 1003
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 817
Session of
2021
INTRODUCED BY KANE, TARTAGLIONE, L. WILLIAMS, SAVAL, FONTANA,
CAPPELLETTI, COSTA, HUGHES, MUTH, COMITTA, COLLETT,
SANTARSIERO, FLYNN, HAYWOOD AND KEARNEY, JULY 26, 2021
REFERRED TO LABOR AND INDUSTRY, JULY 26, 2021
AN ACT
1 Amending the act of October 13, 2010 (P.L.506, No.72), entitled
2 "An act providing for the criteria for independent
3 contractors in the construction industry and for the powers
4 and duties of the Department of Labor and Industry and the
5 Secretary of Labor and Industry; and imposing penalties,"
6 further providing for definitions, for improper
7 classification of employees, for criminal penalties, for
8 administrative penalties and for availability of information.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 2 of the act of October 13, 2010
12 (P.L.506, No.72), known as the Construction Workplace
13 Misclassification Act, is amended by adding a definition to
14 read:
15 Section 2. Definitions.
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 * * *
20 "Debar." Action taken by the secretary to prohibit a
 1 contractor, subcontractor or individual from contracting with or
2 participating in contracts for State-supervised or State-funded
3 construction for a specified period or permanently. The
4 debarment will include all divisions or other organizational
5 elements of a contractor or subcontractor unless limited by its
6 terms to specific divisions or organizational elements. The
7 debarment may apply to affiliates or other individuals or
8 entities associated with the contractor, subcontractor or
9 individual if they are specifically named and given written
10 notice of the debarment and an opportunity to appeal.
11 * * *
12 Section 2. Section 4(d) and (e) of the act are amended to
13 read:
14 Section 4. Improper classification of employees.
15 * * *
16 (d) Enforcement.--If, subsequent to issuing an order to show
17 cause under subsection (c), the secretary finds [probable cause
18 that an employer has committed a criminal violation of this act,
19 the secretary shall refer the matter to the Office of Attorney
20 General for investigation or] that an employer has violated the
21 Workers' Compensation Act, the secretary shall impose
22 administrative penalties under section 6. In addition, the
23 secretary may refer the matter to the Attorney General for
24 criminal investigation. The secretary shall make a referral if
25 the employer has previously been found in violation of this act
26 in another matter. The Attorney General has jurisdiction under
27 section 5 to initiate an investigation or prosecution of
28 criminal violations of this act regardless of whether a referral
29 has been made.
30 (e) Acting in concert with other parties.--A party that does
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 1 not meet the definition of "employer" in section 2, but which
2 [intentionally] contracts with an employer [knowing the employer
3 intends to misclassify] to supply labor for construction knowing
4 the employer will misclassify the supplied employees in
5 violation of this act, shall be subject to the same penalties,
6 remedies or other actions as the employer found to be in
7 violation of this act.
8 * * *
9 Section 3. Section 5(a) of the act is amended and the
10 section is amended by adding a subsection to read:
11 Section 5. Criminal penalties.
12 (a) Grading.--[An employer, or officer or agent of an
13 employer, that intentionally violates section 4(a) commits:
14 (1) A misdemeanor of the third degree for a first
15 offense.
16 (2) A misdemeanor of the second degree for a second or
17 subsequent offense.] The following shall apply:
18 (1) An employer, or officer or agent of an employer who
19 knowingly violates section 4(a) commits:
20 (i) A misdemeanor of the first degree if the
21 employer has no prior offense under section 4(a).
22 (ii) A felony of the third degree if the employer
23 has one or more prior offenses under section 4(a).
24 (2) An employer, or officer or agent of an employer, who
25 knowingly violates section 4(a)(1), and who knows that the
26 misclassified employee does not have the legal right or
27 authorization under Federal law to work in the United States,
28 commits:
29 (i) A felony of the third degree if the employer has
30 no prior offense under section 4(a)(1).
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 1 (ii) A felony of the second degree if the employer
2 has one or more prior offenses under section 4(a)(1).
3 * * *
4 (d) Definitions.--As used in this section, the following
5 words and phrases shall have the meanings given to them in this
6 subsection unless the context clearly indicates otherwise:
7 "Prior offense." A conviction of a violation of section 4,
8 if the judgment of sentence was imposed before the defendant is
9 sentenced for a separate violation of section 4.
10 Section 4. Section 6 of the act is amended by adding a
11 subsection to read:
12 Section 6. Administrative penalties.
13 * * *
14 (c) Intentional violation.--If the secretary determines that
15 a violation of this act was intentional, the secretary shall
16 debar, for a set period or permanently, a contractor,
17 subcontractor or individual from bidding on or participating in
18 State-supervised construction.
19 Section 5. Section 11 of the act is amended to read:
20 Section 11. Availability of information.
21 The department shall create a poster [for job sites] which
22 outlines the requirements and penalties under this act and shall
23 make the poster available on its Internet website. Every
24 employer subject to this act shall keep a summary of this act
25 and any regulations issued thereunder applicable to him or her,
26 posted in a conspicuous place where employees normally pass and
27 can read it, both on job sites and any and all places of
28 business. At the discretion of the secretary, a toll-free
29 hotline telephone number may be established to receive alleged
30 violations.
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1 Section 6. This act shall take effect in 60 days.
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Statutes/Laws affected:
Printer's No. 1003: P.L.506, No.72