Gov. Rendell recently signed into law a bill to prevent construction companies from classifying their employees as independent contractors, thereby avoiding having to pay unemployment compensation and workers compensation taxes. The bill will go into effect in 120 days.
The Pennsylvania bill, which had been backed by the Pennsylvania State Council of Carpenters, focuses on construction, but the issue of misclassification of workers in all fields is gaining increasing regulatory and legislative attention across the nation, and the new law carries with it criminal penalties for violations, which increase each time they occur.
If you own or manage a construction company, you may have questions about how this new law affects your business. Contact DBYD today to schedule a consultation.