HARRISBURG, PA − June 10, 2025 − The Senate Labor and Industry Committee today unanimously passed Senate Bill 72, legislation that strengthens protections for construction workers who are misclassified as independent contractors. The bill, sponsored by Senators Kane, Tartaglione, L. Williams, and Robinson, makes significant improvements to Act 72 of 2010, the Construction Workplace Misclassification Act.
“Spending over four decades as a plumber, I’ve seen firsthand how worker misclassification hurts working families and honest contractors,” said Senator John Kane. “This isn’t just about paperwork, it’s about putting food on the table and making sure workers get the benefits and protections they’ve earned. When contractors cheat the system by misclassifying workers, they’re stealing from hardworking Pennsylvanians who just want a fair shot at making a decent living. Our bill puts some real teeth into enforcement and tells bad actors they can’t get away with stealing from workers anymore.”
The legislation strengthens enforcement mechanisms with several key provisions, including:
- Debarment from state contracts for up to 3 years for first offenses and 5 years for subsequent violations
- Enhanced whistleblower protections and worker restitution provisions
- Mandatory informational posters at construction sites
- Enhanced criminal penalties for violations
- Authority for tax and financial audits of violating companies
- Reduced response time for information requests from 20 to 10 days
“Misclassifying workers as independent contractors is wage theft, plain and simple. It robs families of income, benefits, and protections they’ve earned, and it drains millions in tax revenue from our communities. SB 72 is about closing loopholes and holding bad contractors accountable. Pennsylvania’s construction workers deserve to be treated fairly and this bill makes it clear: if you cheat workers, if you cut corners, there will be consequences.” – Senator Tina Tartaglione
According to the Keystone Research Center, worker misclassification in Pennsylvania’s construction industry results in significant losses to the Commonwealth: $83 million in worker compensation premiums, $47 million in state income taxes, and $11 million in unemployment compensation taxes.
“We cannot allow employee misclassification and corporate greed to hurt a new generation of workers—workers who are entitled to benefits like unemployment, workers compensation, sick pay, enforcement of OSHA safety standards, and more,” said Senator Lindsey Williams. “Senate Bill 72 not only strengthens these rights, but it also increases penalties and provides workers with strong whistleblower protections for reporting violations. This legislation ensures that workers can enforce their rights, because a law that is weak in protecting workers hurts all of us.”
“I am pleased we were able to take the first step in the legislative process to level the playing field for contractors doing the right thing by properly classifying workers and providing the wages and benefits those workers deserve,” said Senator Robinson. “I look forward to continuing to work with my colleagues to find common ground as the bill progresses.”
The construction industry, which provides over 230,000 jobs and has an economic impact exceeding $1 billion in Pennsylvania, will benefit from this legislation’s aim to ensure these positions remain family-sustaining jobs with proper benefits and protections.
###