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Legal Q & A: Does the PA Construction Workplace Misclassification Act Apply to Me?

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MY COMPANY IS ONLY INVOLVED IN RESIDENTIAL CONSTRUCTION. DOES THE PENNSYLVANIA CONSTRUCTION WORKPLACE MISCLASSIFICATION ACT (THE “ACT”) APPLY TO ME?

Yes. The Act applies to all commercial and residential construction in Pennsylvania.

IF I CONTRACT WITH A COMPANY THAT INTENTIONALLY MISCLASSIFIES THEIR WORKERS AS INDEPENDENT CONTRACTORS, DO I FACE ANY LIABILITY UNDER THE PENNSYLVANIA CONSTRUCTION WORKPLACE MISCLASSIFICATION ACT (THE “ACT”)?

You could. Under the Act, an employer that intentionally contracts with another employer knowing that the employer intends to misclassify employees can be held in violation of the Act and face penalties.

However, the Act allows for a good faith defense to an alleged violation if the hiring party believed, in good faith, that the individual performing the services qualified as an independent contractor.