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PRINTER'S NO. 1378
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1076
Session of
2026
INTRODUCED BY ROBINSON, PICOZZI, MASTRIANO, STEFANO, VOGEL,
MILLER AND KANE, JANUARY 9, 2026
REFERRED TO LABOR AND INDUSTRY, JANUARY 9, 2026
AN ACT
Requiring a percentage of workers on a public works project to
be hired from the local labor market; imposing duties on the
Department of Labor and Industry; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Local Hire
Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employer." A person that employs at least one worker on a
public works project.
"Job order." The document containing the material terms and
conditions of employment relating to wages, hours, working
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conditions, worksite and other benefits.
"Local labor market." Every county in this Commonwealth and
any county outside this Commonwealth if any portion of that
county borders this Commonwealth.
"Maintenance work." The repair of an existing facility when
the size, type or extent of the facility is not changed or
increased.
"One-stop delivery system." The term shall mean the same as
defined under section 103 of the act of December 18, 2001
(P.L.949, No.114), known as the Workforce Development Act.
"PA CareerLink® office." An entity established as part of
the one-stop delivery system to provide workforce development
services to individuals seeking employment.
"Primary residence." An individual's true, fixed, principal
and permanent home to which the individual returns or intends to
return, even if currently residing elsewhere. Presentation of a
valid, government-issued identification card shall be conclusive
proof of primary residence.
"Public body." The Commonwealth or any of its political
subdivisions, including:
(1) any authority created by the General Assembly; or
(2) any instrumentality or agency of the Commonwealth.
"Public works project." Construction, reconstruction,
demolition, alteration or repair work other than maintenance
work, done under contract and paid for in whole or in part out
of the money of a public body where the estimated cost of the
total project exceeds $500,000. The term does not include work
performed under a rehabilitation or manpower training program.
"Secretary." The Secretary of Labor and Industry or their
duly authorized deputy or representative.
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"Worker." As follows:
(1) The term includes a laborer, mechanic, skilled and
semi-skilled laborer and apprentices employed by an employer
and engaged in the performance of services directly upon the
public works project, regardless of whether their work
becomes a component part of the public works project.
(2) The term does not include:
(i) Material suppliers or their employees who do not
perform services at the job site.
(ii) Bona fide employees of a public body.
(iii) Independent contractors who meet the
requirements established in section 3 of the act of
October 13, 2010 (P.L.506, No.72), known as the
Construction Workplace Misclassification Act.
(iv) Salaried supervisory personnel necessary to
ensure efficient execution of the work.
"Work performed under a rehabilitation program." Work
arranged by and at a State correctional institution primarily
for teaching and upgrading the skills and employment
opportunities of the inmates of the State correctional
institution.
Section 3. Local labor market utilization on public works
projects.
(a) Employer requirement.--At least 50% of workers for a
public works project shall be hired from the local labor market,
unless residency preference requirements are specifically
prohibited by Federal law.
(b) Duty of employer.--An employer unable to employ the
minimum number of workers from the local labor market for a
public works project shall inform the nearest PA CareerLink®
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office of the number of workers needed for the public works
project and post a job order on the PA CareerLink® website.
(c) Waiver.--
(1) If, within three business days after a job order is
posted under subsection (b), the PA CareerLink® office is
unable to refer sufficient qualified job applicants to the
employer, a staff member of the PA CareerLink® office shall
notify the secretary, who shall issue a waiver to the
employer stating the unavailability of applicants.
(2) The waiver shall permit the employer to fill any
open worker positions from outside the local labor market.
(d) Waiver requirements.--
(1) A waiver under subsection (c) shall be in writing
and be issued within three business days after staff of the
PA CareerLink® office notifies the secretary of the
unavailability.
(2) The waiver shall be provided to both the employer
and the public body.
(e) Contribution.--If an employer is granted a waiver under
subsection (c), the employer shall be required to contribute an
amount equal to the training fund contribution required by the
collective bargaining agreement covering the specific
classification of the worker at the location of the public works
project for each worker covered by the waiver. The contribution
shall be calculated by the number of hours worked multiplied by
the training fund contribution rate per hour. Contributions
shall be paid to the department and deposited into the
Reemployment Fund established under section 601.5 of the act of
December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
the Unemployment Compensation Law.
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Section 4. Duty of employer.
An employer shall keep an accurate record showing the name
and primary residence of each worker employed on the public
works project and the record shall be preserved for two years
from the date of last employment. The record shall be open at
all reasonable hours to the inspection of the public body
awarding the contract and to the secretary.
Section 5. Violations and penalties.
(a) Duty of secretary.--If, after investigation, the
secretary finds that an employer has violated this act, the
secretary shall provide a written notice of the violation to the
employer and the public body stating the number of violations, a
description of each violation and the amount of penalty that
will be imposed if violations continue.
(b) Penalties.--
(1) An employer who violates section 3 shall be subject
to an administrative penalty of $250 per worker less than the
required threshold of 50% per day of violation after receipt
of notice of violation issued by the secretary. The
administrative penalty shall terminate after compliance with
the threshold or issuance of a waiver by the secretary.
(2) An employer who violates section 4 shall be subject
to an administrative penalty not to exceed $1,000 for the
first violation and not to exceed $2,500 for each subsequent
violation.
(3) Actions taken under this section shall be subject to
the provisions of 2 Pa.C.S. (relating to administrative law
and procedure).
(4) All administrative penalties collected under this
section shall be deposited into a restricted revenue account
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in the General Fund to be used for future enforcement of this
act.
Section 6. Regulations.
The department may promulgate regulations as necessary to
implement and administer this act.
Section 7. Applicability.
This act shall apply to public works projects advertised for
bids on or after January 1, 2027.
Section 8. Effective date.
This act shall take effect immediately.
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