An Act providing for criteria for independent contractors and for powers and duties of the Department of Labor and Industry and the Secretary of Labor and Industry; and imposing penalties.

This bill, known as the Workplace Misclassification Act, establishes clearer rules for determining when workers in Pennsylvania are classified as independent contractors versus employees, primarily affecting businesses and workers outside the construction industry. To qualify as an independent contractor, an individual must have a specific written contract, operate their own business with their own tools, and be free from the hiring company's control over how they perform their work. The law also creates new penalties for employers who incorrectly classify workers, including the ability for the Department of Labor and Industry to issue stop-work orders and ban companies from future public contracts. Additionally, the act allows individuals to sue for violations and prohibits employers from retaliating against workers who report misclassification issues.