Improvements to Misclassification of Construction Workers

The following Bill passed the Senate Labor&Industry Committee,11-0

The Bill: SB72

Title: Improvements to Misclassification of Construction Workers

What Does it Mean: further providing for definitions, for improper classification of employees and for criminal penalties; 

“Employers who misclassify their workers do so to take advantage of them, to steal worker wages and benefits and ignore proper safety protocols and training. Our legislation will prevent the continued exploitation of workers through misclassification and strengthen our existing legislation to protect Pennsylvania’s construction industry.”(Senator John Kane)

In other words, removing the independent contractor.

The Go Big Small Biz Network’s Position: We oppose: 

The proposed bill to “improve” misclassification of construction workers, as it effectively aims to eliminate the independent contractor model in Pennsylvania. Many skilled tradespeople choose to work as independent contractors for the flexibility, autonomy, and higher earning potential it provides. This bill would devastate small construction businesses by forcing them to reclassify legitimate contractors as employees, adding unsustainable costs and administrative burdens. It undermines workforce flexibility, limits worker choice, and imposes a one-size-fits-all solution where strong laws already exist to penalize bad actors. Instead of punishing honest contractors and small businesses, lawmakers should focus on enforcing existing laws—not eliminating independent work.

While protecting workers from exploitation is a worthy goal, this bill goes far beyond addressing misclassification—it effectively aims to eliminate the independent contractor model in the construction industry.

This narrative ignores the reality that tens of thousands of skilled tradespeople choose to operate as independent contractors. They value their autonomy, flexibility, and ability to work on multiple projects, build their own businesses, and earn more than they might as employees. Painting all independent contractors as victims is both inaccurate and offensive.

Risks to Small Businesses:

  • Increased Compliance
  • Labor Costs
  • Legal Risks & Costs
  • Operational Challenges for the smaller construction businesses.

The Go Big Small Biz Network exists to prevent government overreach into small businesses. We are funded by our monthly subscribers of $19/monthly. Please Join the movement.

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