There are a lot of reasons why it hurts employees when employers misclassify them as independent contractors – whether they do it intentionally or not. It can deprive employees of the wages, rights and benefits to which they’re entitled. One of these benefits is workers’ compensation.
Under the Construction Workplace Misclassification Act, there are a number of criteria that someone must meet to be classified as an independent contractor rather than an employee.
The potential penalties for employers
While there are already penalties for misclassification, Pennsylvania state lawmakers are now considering legislation that would provide both administrative and criminal penalties for employers who misclassify employers as independent contractors to avoid paying workers’ comp benefits. These penalties can include:
- First-degree misdemeanor charge for first-time offense
- Third-degree felony charge for subsequent offenses
- Fines of up to $1,000
- Stop-work orders
The proposed law also states that any employee who suffers retaliation, including but not limited to being terminated, for reporting their misclassification can take civil legal action against the employer.
If an employer can show that they didn’t intentionally misclassify an employee and that it was done “in good faith,” they can avoid these consequences.
The legislation is still in the early stages and has many more to go through before passing, if it does, and then being signed into law by Gov. Josh Shapiro. It may go through some changes during that process.
It’s always important for workers to know what their current rights are when it comes to workers’ compensation benefits. There are many reasons why a valid workers’ comp claim might be denied initially. If you’re facing difficulties getting the benefits to which you’re entitled, having legal guidance can help
