SB 63 Delaware Senate · 153rd General Assembly (2025-2026)

AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO LABOR.

Summary
Chapter 35 of Title 19 prohibits an employer from improperly classifying an individual who is an employee as an independent contractor. Not only is this improper classification unfair to employees because it violates state and federal laws related to income tax withholding, unemployment insurance, wage laws, and workers’ compensation, it is also unfair to contractors who comply with Chapter 35 and these other employment laws. When employers who violate Chapter 35 are subcontractors who have not registered as contractors as required under Chapter 36 of Title 19, the Department of Labor (Department) has no recourse for enforcing compliance with Chapter 35. This Act makes a general contractor responsible for a subcontractor’s compliance with Chapter 35 by making the general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. This Act also allows the Department to deny, suspend, or revoke the certificate of registration of a contractor who contracts with a subcontractor who has not registered on any project. In addition, Section 3 of this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
Bill status vetoed 4 of 5 stages cleared
Introduction
Mar 2025
Committee Review
Jun 2025
Senate Passage
May 2025
House Passage
Jun 2025
Vetoed
Jan 2026
Introduced Mar 6, 2025 Vetoed Jan 28, 2026
Maddy AI version diff · 1 comparison

What changed between versions

SA 1 to SB 63 Bill Text · 6 edits
MODERATE
The final bill text reverses the direction of Senate Amendment 1, which had sought to limit general contractor liability for subcontractor violations. Instead, the enacted version expands general contractor responsibility by making them jointly and severally liable for a subcontractor's penalties and restitution under Chapter 35 (employee misclassification), adds a new prohibition on aiding or facilitating employer violations, and gives the Department of Labor authority to deny, suspend, or revoke a contractor's registration if they use an unregistered subcontractor on a public works project.
Scope change
The bill's scope expanded significantly from the amendment version. Senate Amendment 1 narrowly addressed whether general contractors could be debarmed for subcontractor violations (answering no). The final bill text broadly imposes joint and several financial liability on general contractors for subcontractor misclassification penalties, adds new anti-facilitation provisions, and creates a new registration enforcement tool tied to use of unregistered subcontractors on public works.
REQUIREMENT

A general contractor is now jointly and severally liable for a subcontractor's penalties and restitution under Section 3505. This is the core policy change - it holds general contractors financially responsible when their subcontractors misclassify workers as independent contractors.

New provision in Section 3503 makes it unlawful for any person to knowingly conspire with, aid and abet, assist, advise, or facilitate an employer with the intent of violating the employee misclassification chapter.

ENFORCEMENT

The Department of Labor may now deny, suspend, or revoke a contractor's certificate of registration if the contractor uses a subcontractor who is not registered under Chapter 36 on a public works contract.

Debarment provisions in Section 3510 were revised: an employer found in violation more than twice in a 2-year period may be debarred, and the Department must file the list of debarred employers with six state agencies including OMB, Division of Revenue, Unemployment Insurance, Insurance, Workers' Compensation, and the Attorney General.

SCOPE

Debarment now extends to successor corporations or business entities that share one or more principals or officers with the debarred employer AND are engaged in the same or equivalent trade or activity, making it harder to evade debarment by restructuring.

DEFINITION

A general contractor is explicitly made responsible for a subcontractor's violations of Chapter 35 (employee misclassification), creating direct liability beyond just financial penalties.

Floor votes · House Jun 25, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
12
Key actions
5
Committee
2
Amendments
2
Jan 28, 2026
Vetoed
Veto Override Passed in the House. 25 YES 15 NO 1 ABSENT
lower
Jan 28, 2026
Vetoed
Veto Override Passed in the Senate. 15 YES 6 NO
upper
Aug 28, 2025
Vetoed
Vetoed by Governor
executive
Jun 25, 2025
Lower · Passed
Passed By House. Votes: 25 YES 13 NO 2 ABSENT 1 VACANT
lower
Jun 17, 2025
Lower · Passed
Reported Out of Committee (Labor) in House with 2 Favorable, 6 On Its Merits
lower
May 14, 2025
Introduced
Assigned to Labor Committee in House
lower
May 13, 2025
Upper · Passed
Passed By Senate. Votes: 14 YES 7 NO
upper
May 13, 2025
Upper · Passed
Amendment SA 1 to SB 63 - Passed By Senate. Votes: 21 YES
upper
May 8, 2025
Introduced
Amendment SA 1 to SB 63 - Introduced and Placed With Bill
upper
Apr 9, 2025
Upper · Passed
Reported Out of Committee (Labor) in Senate with 1 Favorable, 3 On Its Merits
upper
Mar 6, 2025
Introduced
Introduced and Assigned to Labor Committee in Senate
upper
11 primary · 0 co-sponsors

Sponsors