Further providing for improper classification of employees, for administrative penalties, for stop-work orders, for certain agreement prohibited and for use of penalty funds.
Summary
HB933 amends Pennsylvania’s Construction Workplace Misclassification Act to strengthen enforcement against misclassification of construction workers as independent contractors. The bill expands the Department of Labor and Industry’s investigative authority, expressly allowing the secretary to investigate wages, inspect worksites and business records, and require statements from employers or others present at a worksite. It also broadens liability so that a general contractor or other non-employer party that contracts with a misclassifying employer may be subject to the same penalties and remedies as the employer.
The bill increases civil and administrative penalties across several sections of the act. First-offense penalties rise from $1,000 to $2,500, subsequent violations from $2,500 to $5,000, and the daily penalty for violating a stop-work order increases to $2,500 per day. It also raises fines for prohibited agreements and revises how penalty revenue is distributed, directing collections to be split between the relevant state funds and the Department of Labor and Industry to support enforcement. The bill takes effect 60 days after enactment.
Impact
HB933 would amend the Construction Workplace Misclassification Act by giving the Department of Labor and Industry stronger investigative tools, higher penalty authority, and clearer enforcement mechanisms against employers that improperly classify workers in the construction industry. It would also extend potential exposure to general contractors and other contracting parties that work with violators, and it would make stop-work orders more directly enforceable against successor entities engaged in construction. The bill changes the allocation of penalty funds so that enforcement costs are partially supported by the department rather than being deposited entirely into existing funds.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed as a worker-protection and enforcement bill aimed at deterring misclassification in construction. The sponsorship list suggests support from multiple members, and the bill’s structure indicates a policy preference for stronger penalties and broader accountability. No contrary testimony or recorded opposition is included in the provided context, so the available record does not show active controversy in committee.
Contention
The main points of contention likely involve the bill’s tougher enforcement approach: higher fines, expanded inspection authority, and the ability to hold general contractors or other non-employer parties liable when they contract with a misclassifying employer. Construction industry stakeholders may view the broadened liability and stop-work authority as burdensome or as creating compliance risk for contractors who are not the direct employer. Supporters, by contrast, would likely argue that these changes are necessary to deter wage theft, protect properly classified workers, and prevent unfair competition by employers who evade labor obligations.
Further providing for definitions, for improper classification of employees and for criminal penalties; providing for private right of action; further providing for administrative penalties, for retaliation for action prohibited, for availability of information, for use of penalty funds and for funding; and imposing penalties.
Further providing for definitions, for improper classification of employees and for criminal penalties; providing for private right of action; and further providing for administrative penalties, for retaliation for action prohibited, for availability of information, for use of penalty funds and for funding.
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See HF 2678.)