Pennsylvania’s Department of Labor & Industry Clamps Down on Misclassified Employees

Department of Labor and Industry

PENNSYLVANIA — Pennsylvania Department of Labor & Industry (L&I) Acting Secretary Nancy Walker announced the recent release of L&I’s annual report on construction workplace misclassification. In 2022, L&I’s Bureau of Labor Law Compliance (BLLC) collected more than $263,000 in fines from 93 contractors who misclassified about 350 employees in violation of the Construction Workplace Misclassification Act (Act 72).

Act 72 went into effect in 2011 to protect construction employees from the loss of protections and benefits that happens when employers misclassify employees as independent contractors. Since 2011, L&I has cited 927 construction contractors for violations of Act 72 and collected more than $3 million in fines. L&I’s enforcement of Act 72 aims to ensure that misclassified workers can access the unemployment and workers’ compensation benefits to which they are entitled.

“L&I is committed to holding accountable construction-industry employers who misclassify their employees – an injustice that harms individual workers and the construction industry at large. This annual report provides a comprehensive view of our efforts to ensure a level playing field for everyone,” said Acting Secretary Walker.

Misclassification of employees occurs when a business wrongfully classifies a worker as an independent contractor when – based on the nature of and control over their work – they should be considered an employee under the law. A copy of the annual report, which includes a list of businesses cited for violating Act 72, is posted on L&I’s website.

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