The Construction Workplace Misclassification Act is Now a Law

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The Construction Workplace Misclassification Act is Now a Law

Effective today, any construction company operating in Pennsylvania that does not follow the strict guidelines set out in the Construction Workplace Misclassification Act will be civilly liable, may face criminal prosecution, and may also be subject to stop work orders.

If your construction company has not carefully reviewed its contracts and certificates of insurance in light of this Act, it is liable to encounter an unscheduled event in the form of penalties that include heavy fines and possible jail time. Fines include up to $1,000 per misclassified employee for the first violation and up to $2,500 per misclassified worker for each subsequent violation.

Employees who contact the state to report that they have been misclassified are protected from any adverse action by whistleblower laws.At KMRD Partners, we have carefully studied this act and its steep consequences. We are available to help your company make sure it is in compliance with all parts of the law.

KMRD Partners provides risk management consulting and property & casualty insurance to construction companies. To learn more about how you can manage the risks brought about by the Construction Workplace Misclassification Act, please contact us at


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