A Pittsburgh-based building enterprise can pay a tremendous of $144,000 for misclassifying 192 employees in violation of Pennsylvania legislation.
The Pennsylvania Division of Labor & Business (L&I) introduced it has reached a settlement settlement with Romero Reworking Co. for violating the Pennsylvania Building Office Misclassification Act (Act 72).
Employee misclassification happens when an employer incorrectly classifies a employee as an unbiased contractor as an alternative of an worker, depriving the employee of rights and advantages.
“Misclassification of employees undermines a employee’s entry to important advantages like unemployment and employees’ compensation, whereas additionally creating an unfair benefit for companies that sidestep Pennsylvania labor legal guidelines,” stated L&I Secretary Nancy A. Walker.
L&I’s Bureau of Labor Regulation Compliance stated it investigated Romero Reworking after receiving a labor legislation grievance that the agency might have been misclassifying workers. The investigation revealed that the corporate had misclassified 192 workers as unbiased contractors. The corporate can pay an administrative penalty of $750 per misclassified employee.
The Pennsylvania Building Office Misclassification Act, which took impact in 2011, is designed to guard building workers Underneath Act 72, employers might face civil penalties of as much as $1,000 for first offenses and as much as $2,500 for subsequent violations.
In line with L&I, it has recognized violations of Act 72 by greater than 1,250 building contractors, leading to cumulative fines exceeding $4 million for the reason that legal guidelines’s enactment in 2011. In 2024, the company investigated 639 instances, issuing fines totaling $1,031,398 and defending 1,883 employees misclassified by 362 contractors.
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Contractors
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