Harrisburg, PA – The Pennsylvania Department of Labor & Industry (L&I) announced today it has reached a settlement agreement with Romero Remodeling Company, a Pittsburgh-based construction business, to pay a fine of $144,000 for misclassifying 192 workers in violation of the Pennsylvania Construction Workplace Misclassification Act (Act 72).
Worker misclassification occurs when an employer incorrectly classifies a worker as an independent contractor instead of an employee, depriving them of crucial employee rights and benefits. L&I encourages all employers to familiarize themselves with Act 72 to avoid violations and substantial penalties.
"Misclassification of workers undermines a worker’s access to essential benefits like unemployment and workers' compensation, while also creating an unfair advantage for businesses that sidestep Pennsylvania labor laws," said L&I Secretary Nancy A. Walker. "We are committed to holding employers accountable, protecting workers, and supporting businesses that play by the rules."
L&I’s Bureau of Labor Law Compliance
L&I’s Bureau of Labor Law Compliance (BLLC) is responsible for the administration, education, and enforcement of labor laws.
BLLC conducted a thorough investigation of Romero Remodeling Company after receiving a labor law complaint that Romero Remodeling may have been misclassifying employees. The investigation revealed that the company had misclassified 192 employees as independent contractors. The company will pay an administrative penalty of $750 per misclassified worker.
About Act 72
The Pennsylvania Construction Workplace Misclassification Act, which took effect in 2011, is designed to protect construction employees from losing benefits and protections when they are improperly classified as independent contractors. Under Act 72, employers may face civil penalties of up to $1,000 for first offenses and up to $2,500 for subsequent violations.
Since its enactment in 2011, the Department of Labor & Industry has identified violations of Act 72 by more than 1,250 construction contractors, resulting in cumulative fines exceeding $4 million.
In 2024, BLLC investigated 639 Act 72 cases, issuing fines totaling $1,031,398 and protected 1,883 workers misclassified by 362 contractors.
How to Submit a Complaint
L&I's Bureau of Labor Law Compliance responds to complaints filed by members of the public who suspect violations of the Construction Workplace Misclassification Act, Child Labor Act, and other Pennsylvania labor laws. Anyone can file a complaint on L&I's website using an online submission form.
For more information on the Pennsylvania Department of Labor & Industry, please visit the website or follow L&I on Instagram, Facebook, X, and LinkedIn.
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