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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | June 7, 2024 01:27 PM |
|---|---|
| From: | Representative David M. Delloso |
| To: | All House members |
| Subject: | Employee Misclassification Working Group |
| According to data collected by the Joint Task Force on Misclassification of Employees, 259,000 workers in Pennsylvania are misclassified as independent contractors annually. Misclassification not only impedes workers’ access to important workplace benefits and protections, but it also robs the Commonwealth of vital revenue. The task force reported that employee misclassification led to an annual loss of $91 million to the Unemployment Compensation Trust Fund and $6.4 to $124.5 million in lost revenue to the General Fund. This lost revenue then falls on the backs of taxpayers and responsible employers who follow the law. The task force identified tax and wage audits as critical tools for uncovering misclassification and recommended the creation of an interagency working group to meet quarterly to coordinate enforcement strategies involving state agencies. Further, the task force recommended that the General Assembly authorize the Department of Labor & Industry and the Department of Revenue to share data for the purposes of investigating employee misclassification. Therefore, I will soon introduce legislation to establish the Employee Misclassification Working Group and permit the Department of Revenue to share tax information with the Department of Labor & Industry to enhance enforcement. Please join me in cosponsoring this legislation to protect the Commonwealth’s workers and revenue from the harms of misclassification. |
Introduced as HB2412