AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO LABOR.
What changed between versions
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.
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.
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.
A general contractor is explicitly made responsible for a subcontractor's violations of Chapter 35 (employee misclassification), creating direct liability beyond just financial penalties.