Labor & Employment (Gig Economy)

SB 316 amends Pennsylvania's Human Relations Act by clarifying key definitions related to employment protections. It explicitly excludes domestic workers employed casually in private homes and family members (parents, spouses, children) working for relatives from being classified as "employees" under the law. The bill also expands the definition of "independent contractor" to include licensed professionals (e.g., doctors, lawyers) and individuals covered by federal fair housing laws. These changes directly affect which workers are subject to the Act's anti-discrimination protections, particularly impacting domestic workers and family-based employment arrangements.

SB 894 creates a formal process for businesses to register workers as independent contractors under Pennsylvania's Workers' Compensation Act. To register, a business must obtain a worker's signed waiver and affidavit confirming they are not an employee, agree to forgo workers' compensation benefits, and understand they cannot access the Uninsured Employers Fund if injured. If registered, the business is not liable for benefits or required to provide insurance coverage for that worker, and the worker loses eligibility for those benefits. Registration is valid annually unless the worker revokes it by filing a request with the department, which takes effect 10 days after submission.

SB 893 amends Pennsylvania's Construction Workplace Misclassification Act to clarify that construction workers registered under the Home Improvement Consumer Protection Act (2008) are considered independent contractors by default. This change directly affects construction workers and contractors in disputes over misclassification, shifting the burden of proof in such cases. The key provision states that current registration under the Home Improvement Act serves as strong evidence that a worker is an independent contractor, not an employee. This simplifies verification for employers and the Department of Labor but does not alter worker rights or create new registration requirements.

SB 486 amends Pennsylvania's procurement laws to add new reasons for barring state contractors from future contracts. It specifically prohibits state agencies from awarding contracts to businesses that violate wage laws (like the Wage Payment and Collection Law), misclassify employees as independent contractors (violating laws covering workers' compensation, unemployment insurance, taxes, or construction misclassification), or breach workers' compensation rules. This directly affects businesses seeking or holding state government contracts by expanding the grounds for debarment. The bill updates existing debarment rules to include these specific labor and wage violations, making them automatic disqualifiers for state contracting. It takes effect 60 days after enactment.

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.

HB 276 creates a permanent Employee Misclassification Working Group to coordinate state agencies addressing worker classification issues. The bill requires departments like Labor and Revenue to collaborate on identifying and resolving cases where employers wrongly classify workers as independent contractors. This working group will develop strategies to protect workers' access to benefits like unemployment insurance and workers' compensation. The law directly affects state agencies managing labor enforcement and workers' rights, aiming to improve interagency efficiency in tackling misclassification.