L&I investigates all complaints of suspected labor law violations. The Bureau of Labor Law Compliance may assess civil penalties to employers found to have misclassified construction workers as independent contractors, which is prohibited by Act 72.
Worker misclassification occurs when an employer wrongly classifies a worker as an independent contractor instead of an employee, denying them essential employee rights and benefits. It also creates a business disadvantage for employers who properly classify their workers.
Act 72 protects construction workers specifically. The law presumes construction workers to be employees unless they meet certain criteria to be classified as independent contractors.
Examples of Act 72 Violations
- Employers misclassifying workers as independent contractors when they should be classified as employees.
- Employers who force individual(s) to enter into an agreement or sign a document which results in misclassification as an independent contractor.
- Employers who intentionally partner with another business knowing that business intends to misclassify employees.
- Employers who do not have a written contract for their legitimate independent contractors.
