HB 721 Pennsylvania House · 2025-2026 Regular Session

An Act amending the act of October 13, 2010 (P.L.506, No.72), known as the Construction Workplace Misclassification Act, 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.

HB 721 amends Pennsylvania's Construction Workplace Misclassification Act to strengthen protections for construction workers who are incorrectly classified as independent contractors instead of employees. The bill allows affected workers to file lawsuits against companies for misclassification and imposes criminal penalties for repeated violations, while also adding safeguards against employer retaliation for reporting violations. It expands administrative penalties for misclassification and requires that penalty funds be used to support enforcement efforts. This directly affects construction companies that misclassify workers and construction workers who lose benefits like overtime pay, health insurance, or workers' compensation due to improper classification.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
Governor
Introduced Feb 25, 2025 Last action May 22, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Printer's No. PN0742 Printer's No. PN1330 · 6 edits
MODERATE
This bill revision significantly strengthens enforcement and accountability for labor violations by adding a new definition for 'successor entities' to ensure penalties apply to related companies, clarifying that intentional violations lead to mandatory three-year debarments, and expanding private rights of action for employees facing retaliation. It also updates the definition of 'employer' to include parties knowingly supplying labor for misclassification and modifies penalty fund allocations to direct revenue to a restricted General Fund account.
Scope change
The bill's scope expanded to include 'successor entities' (companies with shared officers, premises, or workforce) under debarment orders and clarified that non-employer contractors knowingly supplying labor for misclassification are subject to the same penalties as the primary employer.
DEFINITION

Added a comprehensive definition for 'successor entity' listing nine specific criteria, such as sharing principals, premises, tools, or workforce, to ensure related companies cannot evade penalties.

ENFORCEMENT

Clarified that if a violation is determined to be intentional, the secretary must debar the contractor for at least three years, and expanded this debarment to include partners, officers, and corporate affiliates.

ELIGIBILITY

Expanded the definition of liable parties to include contractors who intentionally contract with an employer knowing the employer intends to misclassify workers.

REQUIREMENT

Modified the definition of a 'prior offense' to require a formal 'finding of guilt' rather than just a sentence imposition, affecting how repeat violations are calculated.

Added a new private right of action allowing employees to sue in court for retaliation or discrimination related to reporting violations.

FISCAL

Changed the destination of collected penalties and fees from being split between two funds to being deposited entirely into a new restricted revenue account in the General Fund.

Floor votes · House May 13, 2025

How they voted

11390
Passed
Total votes 203
May 13, 2025
D Democratic102
102 Yea
100% Yea
R Republican101
11 Yea 90 Nay
89% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
3
Committee
4
Amendments
1
May 22, 2025
Committee
Referred to Labor & Industry
upper
May 13, 2025
Lower · Passed
Third consideration and final passage
lower
May 13, 2025
Lower · Passed
Re-reported as committed
lower
May 12, 2025
Committee
Re-committed to Appropriations
lower
Apr 9, 2025
Lower · Passed
Reported as amended
lower
Feb 25, 2025
Committee
Referred to Labor & Industry
lower
1 primary · 27 co-sponsors

Sponsors