Effective Now! The Pennsylvania Construction Workplace Misclassification Act (72), employee misclassification as independent contractors, is illegal for all commercial and residential construction in Pennsylvania. The law is now effective and construction industry employers must comply with the mandatory-to-post requirements.
Under the law it is unlawful to do the following
- Contract with an employer knowing that the employer intends to misclassify workers
- Retaliate against workers who exercise their rights under this law, including the right to file a complaint
- Require or demand that an individual enter into an agreement or sign a document which results in the improper classification of the individual as an independent contractor.
Pennsylvania Construction Industry workers may not be classified as independent contractors unless certain specifications are met. The Act also contains a narrow definition of “independent contractor”. An individual may not be classified as an independent contractor unless the individual:
- Has a written contract to perform construction services with the business or person,
- Is free from direction or control over the performance of services, and
- Is customarily engaged in an independently established trade, occupation, profession or business.
Act 72 addresses specific penalties for non compliance with Pennsylvania Labor Law. A company or its officer or agent may be subject to penalties if the business fails to properly classify individual employees under the Pennsylvania Workers’ Compensation Act or the Unemployment Compensation Law. Under the law, “each individual misclassification by an employer is a separate violation of the law and constitutes grounds for separate penalties.”
To purchase the Pennsylvania Construction Workplace Misclassification Act poster visit Compliance Poster Company online.