An Act providing for the registration of labor brokers; imposing duties on the Department of Labor and Industry and the Secretary of Labor and Industry; establishing the Labor Broker Registration Acco . . .unt; and imposing penalties.
HB678 would create the Labor Broker Registration Act, requiring any “labor broker” operating in Pennsylvania to register with the Department of Labor and Industry before supplying construction workers to an employer or contractor. The bill defines labor brokers broadly as entities or individuals that provide construction labor for compensation on Pennsylvania projects, while carving out certain bona fide construction subcontractors that meet detailed criteria showing they independently control the work, pay workers, obtain permits, and carry insurance. Registered labor brokers would receive a certificate of compliance and registration number, and they would have to include that number in advertisements, contracts, estimates, and related documents.
The bill also establishes a public verification system on the department’s website and requires labor brokers to disclose business information, ownership interests, prior criminal or administrative history related to fraud or misclassification, and proof of financial responsibility. Registrations would be renewed on a biennial basis, and brokers would have to report changes in their information within 30 days. The Department of Labor and Industry would be authorized to investigate suspected violations, inspect worksites and records, issue subpoenas, impose penalties, suspend registrations, seek injunctive relief, and collect fees and penalties into a dedicated Labor Broker Registration Account used to administer and enforce the act.
HB678 would add a new state registration and enforcement regime for labor brokers in the construction industry, creating new compliance obligations for brokers, contractors, and others who hire or work with them. It would also expand the Department of Labor and Industry’s authority to maintain a public registry, verify registrations, investigate violations, assess fines, suspend or debar violators, and promulgate regulations. The bill would affect construction staffing and subcontracting practices, especially where worker-supply arrangements could be treated as labor brokering rather than independent subcontracting, and it would create new penalties for contracting with unregistered labor brokers.
The committee vote suggests generally favorable sentiment toward the bill, with the House Labor & Industry Committee reporting it as amended by a 14-12 vote and then adopting an amendment unanimously by 26-0. That pattern indicates the proposal had enough support to advance, but also that it remained somewhat divisive. The absence of recorded committee transcript discussion limits insight into the specific arguments, but the close report vote suggests members were split over the scope and enforcement of the registration requirements.
The main points of contention likely center on how broadly the bill defines “labor broker” and how much compliance burden it places on construction businesses and staffing intermediaries. The bill’s detailed exclusions for certain subcontractors suggest concern about distinguishing legitimate subcontracting from labor brokering, and the penalties for using unregistered brokers could raise concerns among contractors about inadvertent violations. Supporters likely view the measure as a worker-protection and enforcement tool aimed at fraud, misclassification, and accountability in construction labor supply chains, while critics may worry about administrative costs, overbreadth, and the risk of sweeping in ordinary subcontracting relationships.