Pennsylvania Passes Strict Law Against Worker Misclassification
Like laws passed in other states, the new act spells out the criteria for classifying a worker as an independent contractor. The act states that a person in the construction industry may only be paid as an independent contractor if that person has a written contract for service, is “free from control or direction” as to how to perform the service, and if that person normally performs the service as an independent business.
Pennsylvania took its worker misclassification law a step further than other states by making it a criminal offense to even contract with a subcontractor who misclassifies workers.
“A party that does not meet the definition of ‘Employer’ in Section 2, but which intentionally contracts with an employer knowing the employer intends to misclassify employees in violation of this act, shall be subject to the same penalties, remedies or other actions as the employer found to be in violation of this act.”
Let's hope Texas follows suit and passes its own worker misclassification law during its legislative session starting in January.