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PRINTER'S NO. 737
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 718
Session of
2025
INTRODUCED BY KINKEAD, D. MILLER, SANCHEZ, WAXMAN, HILL-EVANS,
ISAACSON, FIEDLER, PROBST, PIELLI, McNEILL, SCHLOSSBERG,
KHAN, CERRATO, RABB, HADDOCK, NEILSON, HOWARD, GIRAL, OTTEN,
D. WILLIAMS, MAYES, HOHENSTEIN, DEASY, GREEN, FREEMAN, STEELE
AND KENYATTA, FEBRUARY 24, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 24, 2025
AN ACT
Amending the act of July 14, 1961 (P.L.637, No.329), entitled
"An act relating to the payment of wages or compensation for
labor or services; providing for regular pay days; conferring
powers and duties upon the Department of Labor and Industry,
including powers and duties with respect to the civil
collection of wages; providing civil and criminal penalties
for violations of the act; providing for their collection and
disposition and providing for additional civil damages,"
further providing for definitions; providing for duty of
department to report and for investigations; further
providing for civil remedies and penalties, for liquidated
damages and for criminal penalties; providing for employer
liability; and establishing the Wage Enforcement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "employer" in section 2.1 of
the act of July 14, 1961 (P.L.637, No.329), known as the Wage
Payment and Collection Law, is amended and the section is
amended by adding a definition to read:
Section 2.1. Definitions.--The following words and phrases
when used in this act shall have, unless the context clearly
indicates otherwise, the meanings given to them in this section:
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* * *
"Employer." [Includes every person, firm, partnership,
association, corporation, receiver or other officer of a court
of this Commonwealth and any agent or officer of any of the
above-mentioned classes employing any person in this
Commonwealth.] Any of the following classes employing a person
in this Commonwealth:
(1) The Commonwealth.
(2) A political subdivision of the Commonwealth.
(3) An authority created by the General Assembly.
(4) An instrumentality or agency of the Commonwealth.
(5) Every person, firm, partnership, association,
corporation, receiver or other officer of a court of this
Commonwealth.
(6) An agent or officer of any of the above-mentioned
classes specified under paragraph (1), (2), (3), (4) or (5).
* * *
"High-violation industry." An industry that incurs at least
25 violations over a two-year period.
* * *
Section 2. The act is amended by adding sections to read:
Section 8.1. Duty of Department to Report.--(a) The
department shall collect on a quarterly basis the following data
categorized by industry:
(1) The number of violations.
(2) The amount of fines collected.
(3) The nature of violations.
(4) The number of individual complaints filed.
(5) The number of complaints resolved.
(6) The amount of unpaid wages owed.
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(7) The amount of unpaid wages recovered.
(8) The number of pending individual complaints.
(9) The number of workplaces investigated from complaints.
(10) The number of workplaces investigated proactively.
(11) The number of workplaces reinvestigated following
violations.
(12) The number of subsequent violations.
(b) On a semiannual basis, the department shall prepare and
submit a report of the data specified under subsection (a) to
the chairperson of the Labor and Industry Committee of the
Senate and the chairperson of the Labor and Industry Committee
of the House of Representatives.
(c) The department shall post each report under subsection
(b) on the publicly accessible Internet website of the
department.
Section 8.2. Investigations.--The secretary shall:
(1) Investigate high-violation industries no less than
quarterly.
(2) Train investigators to recognize basic labor, health and
safety violations.
(3) Engage in cross-agency referrals to protect workers'
rights.
Section 3. Section 9.1(c) of the act is amended and the
section is amended by adding a subsection to read:
Section 9.1. Civil Remedies and Penalties.--* * *
(c) The employe or group of employes, labor organization or
party to whom any type of wages is payable may, in the
alternative, inform the secretary of the wage claim against an
employer or former employer, and the secretary shall, unless the
claim appears to be frivolous, immediately notify the employer
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or former employer of such claim by certified mail. If the
employer or former employer fails to pay the claim or make
satisfactory explanation to the secretary of his failure to do
so within ten days after receipt of such certified notification,
thereafter, the employer or former employer shall be liable for
a penalty of [ten percent (10%) of that portion of the claim
found to be justly due.] two thousand dollars ($2,000) per
violation of this act or the regulations or equal to triple the
unpaid wages in damages to the employe, whichever is greater,
and attorney fees. Each week in which an employe is paid less
than the applicable wage under this act and each employe who is
paid less than the prescribed rate shall constitute a separate
violation that shall be subject to a separate penalty. A good
faith dispute or contest as to the amount of wages due or the
good faith assertion of a right of set-off or counter-claim
shall be deemed a satisfactory explanation for nonpayment of
such amount in dispute or claimed as a set-off or counter-claim.
The secretary [shall have a cause of action against the employer
or former employer for recovery of such penalty and the same]
may issue orders and levy the civil penalty only after affording
the accused party the opportunity for a hearing as provided
under 2 Pa.C.S. (relating to administrative law and procedure).
The penalty may be included in any subsequent action by the
secretary on said wage claim or may be exercised separately
after adjustment of such wage claim without court action. At the
request of an employe, the department shall assign that portion
of the money, which is due to the employe, that constitutes
wages or wage supplements, interest on wages or wage supplements
and liquidated damages to the employe and shall file an order in
that amount in the name of the employe with the county clerk of
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the county in which the employer of the employe resides or has a
place of business. The filing of the order shall have the full
force and effect of a judgment duly docketed in the office of
the clerk.
* * *
(h) (1) It is unlawful for an employer or the employer's
agent, or the officer or agent of a corporation, to discharge or
in any other manner discriminate against any employe who:
(i) files or submits a complaint under this act;
(ii) cooperates with the secretary or the secretary's
representative, submits evidence, testifies or is about to
testify before the secretary or the secretary's representative
in any investigation or proceeding under or related to this act;
(iii) the employer believes may take the actions under this
paragraph;
(iv) exercises any right under this act or any regulation
implementing its provisions; or
(v) provides assistance or information to another employe
about this act.
(2) (i) A first offense under this subsection shall be
graded as a summary offense.
(ii) A second or subsequent offense under this subsection,
committed within a five-year period of the prior offense, shall
be graded as a misdemeanor of the third degree and shall be
punishable by a fine of not less than one thousand dollars
($1,000) nor more than three thousand dollars ($3,000) or to
imprisonment of not less than 10 days nor more than 100 days.
(iii) Each day of the failure to comply with this subsection
or the regulations of this subsection and each employe who is
discharged or in any other manner discriminated against shall
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constitute a separate offense subject to a separate penalty.
(iv) An employer and the employer's agent, or the officer or
agent of a corporation, may also be required to pay the employe
an amount set by the court sufficient to compensate the employe
and deter future violations.
Section 4. Sections 10 and 11.1 of the act are amended to
read:
Section 10. Liquidated Damages.--Where wages remain unpaid
for thirty days beyond the regularly scheduled payday, or, in
the case where no regularly scheduled payday is applicable, for
sixty days beyond the filing by the employe of a proper claim or
for sixty days beyond the date of the agreement, award or other
act making wages payable, or where shortages in the wage
payments made exceed five percent (5%) of the gross wages
payable on any two regularly scheduled paydays in the same
calendar quarter, and no good faith contest or dispute of any
wage claim including the good faith assertion of a right of set-
off or counter-claim exists accounting for such non-payment, the
employe shall be entitled to claim, in addition, as liquidated
damages an amount equal to [twenty-five percent (25%) of the
total amount of wages due, or five hundred dollars ($500),
whichever is greater.] triple the unpaid wages due or two
thousand dollars ($2,000), whichever is greater, and attorney
fees. Each week in which an employe is paid less than the
applicable wage under this act shall constitute a separate
violation that shall be subject to a separate penalty.
Section 11.1. Criminal Penalties.--(a) The secretary or any
employe, group of employes, labor organization or party to whom
any type of wages is payable may institute prosecutions under
this act.
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(b) [In addition to any other penalty or punishment
otherwise prescribed by law, any employer who violates any
provisions of this act shall be guilty of a summary offense and,
upon conviction thereof, shall be punished by a fine of not more
than three hundred dollars ($300), or by imprisonment up to 90
days, or by both, for each offense.] (1) Each day of the
failure to comply with this act, and each employe against whom
the employer or officer or agent of a corporation violated any
other provision of this act, shall constitute a separate offense
that shall be subject to a separate penalty. The good faith
contest or dispute by any employer of any wage claim or the good
faith assertion of a right of set-off or counter-claim shall not
be considered a violation of this act: Provided, That the
employer has paid all wages due in excess of the amount in
dispute or asserted to be subject to a right of set-off or
counter-claim. [Nonpayment of wages to, on account of, or for
the benefit of each individual employe shall constitute a
separate offense.]
(2) In addition to any other penalty or punishment otherwise
prescribed by law, an employer in violation of any provision of
this act commits:
(i) A summary offense for a first offense if the total
amount of unpaid wages is less than one hundred fifty dollars
($150) .
(ii) A misdemeanor of the second degree for a second offense
if the total amount of unpaid wages is less than one hundred
fifty dollars ($150) .
(iii) A misdemeanor of the first degree for a first or
second offense if the total amount of unpaid wages is more than
one hundred fifty dollars ($150) .
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(iv) A felony of the third degree for a third or subsequent
offense regardless of the total amount of unpaid wages.
(c) Where such employer is a corporation, the president,
secretary, treasurer or officers exercising corresponding
functions shall each be guilty of such summary offense.
(d) [All fines or penalties collected under this act shall
be paid into the State Treasury through the Department of
Revenue to the credit of the General Fund.] All fines and
penalties collected under section 9.1 and this section shall be
deposited into the Wage Enforcement Fund established under
section 11.3.
Section 5. The act is amended by adding sections to read:
Section 11.2. Employer Liability.--An employer similar in
operation and ownership to another employer found in violation
of section 9.1(c) or (h) or 11.1(b) shall be deemed the same
employer for the purposes of this section if the employes of the
similar employer are engaged in substantially the same work in
substantially the same working conditions under substantially
the same supervisors, or if the similar employer has
substantially the same production process, produces
substantially the same products and has the same body of
customers as the other employer found in violation of section
9.1(c) or (h) or 11.1(b). The similar employer shall continue to
be subject to section 9.1(c) or (h) or 11.1(b) and shall be
liable for the acts of the other employer under section 9.1(c)
or (h) or 11.1(b), as applicable.
Section 11.3. Wage Enforcement Fund.--(a) The Wage
Enforcement Fund is established in the State Treasury.
(b) The money in the fund shall consist of the fines and
penalties collected under sections 9.1 and 11.1.
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(c) Money in the fund is appropriated on a continuing basis,
upon approval of the Governor, to the department for periodic
inspections, investigations of violations and the enforcement of
this act and the act of January 17, 1968 (P.L.11, No. 5), known
as The Minimum Wage Act of 1968, including staffing for
inspection, investigation and enforcement under this act and The
Minimum Wage Act of 1968.
(d) Money may not be expended or obligated from the fund to
a third party for a purpose other than that specified under
subsection (c).
(e) Money in the fund shall not lapse at any time or be
transferred to any other fund.
(f) (1) No later than June 30 of each calendar year, the
department shall issue a report regarding the fund.
(2) Each report under this subsection shall be transmitted
to the Governor and the General Assembly, through the Secretary-
Parliamentarian of the Senate and the Chief Clerk of the House
of Representatives.
(3) Each report under this subsection must include:
(i) An accounting for the fines collected and deposited into
the fund.
(ii) The expenditures and transfers from the fund during the
prior year.
(iii) A description of the purposes for which expenditures
from the fund were made in the prior year.
(iv) A full account of the data collections required of the
department under section 7 of The Minimum Wage Act of 1968.
(4) No later than July 1 of each calendar year, each report
under this subsection shall be posted on the publicly accessible
Internet website of the department.
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(g) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Fund." The Wage Enforcement Fund established under
subsection (a).
Section 6. This act shall take effect in 60 days.
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