This bill amends Pennsylvania's Tax Reform Code to exclude tips from taxable personal income. It directly affects employees who receive tips, such as restaurant and hospitality workers, by removing these earnings from their taxable income calculations. The legislation defines tips as voluntary customer payments and explicitly excludes employer-mandated fees or service charges from this exclusion. The Department of Revenue will create regulations to implement the change and prevent fraud or misclassification of wages as tips. The law takes effect 60 days after passage and applies to the next fiscal year following that date.
HB 2133, the "Right to Disconnect Act," gives employees of Pennsylvania employers with 75+ workers the right to ignore work communications during nonworking hours (outside scheduled shifts). Employers must create written policies establishing this right, with exceptions for emergencies or last-minute schedule changes. Employees can file complaints with the Pennsylvania Department of Labor and Industry if an employer repeatedly violates this right (defined as three documented instances), with appeals potentially going to the Attorney General. The law aims to protect employees' personal time from work-related contact during nonwork hours.
SB 72 strengthens Pennsylvania's Construction Workplace Misclassification Act by increasing penalties for employers who wrongly classify workers as independent contractors. It adds criminal penalties (misdemeanors to felonies based on prior offenses), creates a private right for misclassified employees to sue for triple back pay plus attorney fees, and expands debarment authority to exclude violators from public construction projects for up to five years. The bill directly affects construction employers, workers on public projects, and contractors doing state work, while prohibiting retaliation against those reporting violations. These changes aim to enforce proper worker classification and compensation under the existing 2010 law.
SB 538 requires the Joint State Government Commission to study driver income, traffic congestion, safety, and service access for ride-hailing companies (like Uber or Lyft) in Pennsylvania. The study will collect detailed data from companies on ride specifics, driver availability, and earnings, with a report due within 12 months. Based on this report, the Public Utility Commission may later establish minimum payments for drivers and minimum fare rates for rides, excluding taxes and fees. This bill directly affects ride-hailing companies, drivers, and passengers by potentially setting new compensation and pricing standards.
HB 884 establishes Pennsylvania's Four-Day Workweek Pilot Program, allowing private and public employers to test a four-day workweek for at least 30 employees without pay or benefit cuts. Employers participating must apply to the Department of Labor and Industry, submit a transition plan, and allow the department to study impacts through surveys. Qualifying employers receive tax credits of either $250,000 per business or $5,000 per participating employee, capped at $15 million total annually. The program requires the Department of Labor and Revenue to coordinate administration, study outcomes, and encourage public-sector adoption, with the pilot set to expire after its initial implementation period.
HB 1056 requires employers in Pennsylvania’s traveling sales industry (groups selling goods/services door-to-door or in public places) to classify workers as employees - not independent contractors - unless specific conditions are met. It mandates employer registration with the Department of Labor and Industry, prohibits misclassification for benefits like workers’ compensation and unemployment insurance, and imposes fines for violations. The bill directly affects businesses employing traveling sales crews, with penalties including administrative fines and potential stop-work orders for noncompliance. Key provisions include mandatory registration, proof of employee status, and prohibitions against retaliation for workers reporting violations.
HB 933 increases penalties for construction employers who misclassify workers as independent contractors, raising fines to $2,500 for a first violation and $5,000 for subsequent violations. It expands accountability to include general contractors and other parties who knowingly contract with employers that misclassify workers, subjecting them to the same penalties. The bill also adds a three-year ban on public contracts for intentional violators and clarifies that stop-work orders can require construction to halt within 24 hours for intentional misclassification, applying to successor businesses.
HB 1166 regulates digital platforms that connect healthcare workers with facilities (like staffing apps). It requires these platforms to register with Pennsylvania’s Department of Health ($1,000 fee), verify workers’ licenses, background checks, and insurance, and maintain records for three years. The bill also sets rules ensuring healthcare workers using these platforms are classified as independent contractors (not employees) and must have annual physicals/CPR certification if providing direct patient care. These requirements apply directly to platforms operating in Pennsylvania and the healthcare workers using them.
SB 586, the Workplace Misclassification Act, sets clear criteria for determining when a worker qualifies as an independent contractor (requiring written project-specific contracts, business ownership, and independence from employer control) and prohibits employers from misclassifying employees as independent contractors. This directly affects workers who might lose access to workers' compensation, unemployment benefits, and other employee protections if misclassified, as well as employers who fail to properly classify workers. Key mechanisms include criminal penalties for violations, administrative fines, stop-work orders for noncompliant employers, and a private right for workers to sue for misclassification. The bill aims to replace vague standards with enforceable rules, requiring the Department of Labor to enforce these provisions and report annually on compliance.
SB 548, the Fair Workweek Employment Standards Act, requires large retail, hospitality, and food services employers (those with 250+ employees across 20+ locations) to provide written advance notice of work schedules to employees. It mandates that employers give a good-faith estimate of weekly hours at hire, revise estimates for significant schedule changes, and notify employees of schedule changes at least seven days in advance. Employees gain the right to request schedule adjustments, though employers may deny requests for lawful reasons. The bill also authorizes the Department of Labor and Industry to enforce these standards and impose penalties for violations.
