HB 1056 — An Act providing for criteria for independent contractors in the traveling sales industry and for the powers and duties of the Department of Labor and Industry; and imposing penalties.

PRINTER'S NO.   1147

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1056
                                                 Session of
                                                   2025

     INTRODUCED BY WARREN, BURGOS, HILL-EVANS, PIELLI, SANCHEZ,
        NEILSON, GALLAGHER AND CERRATO, MARCH 26, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 26, 2025


                                      AN ACT
 1   Providing for criteria for independent contractors in the
 2      traveling sales industry and for the powers and duties of the
 3      Department of Labor and Industry; and imposing penalties.
 4                               TABLE OF CONTENTS
 5   Section 1.    Short title.
 6   Section 2.    Definitions.
 7   Section 3.    Employee determination.
 8   Section 4.    Improper classification of employees.
 9   Section 5.    Registration required.
10   Section 6.    Payment of compensation, deductions, statements and
11                 records.
12   Section 7.    Worker safety.
13   Section 8.    Insurance coverage.
14   Section 9.    Prohibited practices.
15   Section 10.    Criminal offenses.
16   Section 11.    Administrative penalties.
17   Section 12.    Procedure.
18   Section 13.    Certain agreements prohibited.
 1   Section 14.    Retaliation prohibited.
 2   Section 15.    Rules and regulations.
 3   Section 16.    Effective date.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6   Section 1.    Short title.
 7      This act shall be known and may be cited as the Traveling
 8   Sales Crew Worker Employment Act.
 9   Section 2.    Definitions.
10      The following words and phrases when used in this act shall
11   have the meanings given to them in this section unless the
12   context clearly indicates otherwise:
13      "Department."    The Department of Labor and Industry of the
14   Commonwealth.
15      "Employee."    Either of the following:
16          (1)    In relation to workers' compensation, the term shall
17      have the meaning given to "employe" in section 104 of the
18      Workers' Compensation Act.
19          (2)    In relation to unemployment compensation, the term
20      shall have the meaning given to "employe" in section 4(i) of
21      the Unemployment Compensation Law.
22      "Employer."    Either of the following:
23          (1)    In relation to workers' compensation, the term shall
24      have the meaning given to it in section 103 of the Workers'
25      Compensation Act.
26          (2)    In relation to unemployment compensation, the term
27      shall have the meaning given to it in section 4(j) of the
28      Unemployment Compensation Law.
29      "Secretary."    The Secretary of Labor and Industry of the
30   Commonwealth.

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 1      "Traveling sales crew."     The following:
 2          (1)   Two or more individuals who are employed as
 3      salespersons or in related support work who travel together
 4      in a group and who are absent overnight from their permanent
 5      places of residence for the purpose of selling consumer goods
 6      or services to consumers from house to house, or on any
 7      street or in any other place that is open to the public.
 8          (2)   The term does not include:
 9                (i)    two or more individuals who are traveling
10          together for the purpose of participating in a trade show
11          or convention; or
12                (ii)    two or more immediate family members who are
13          traveling together for the purpose of selling consumer
14          goods or services.
15      "Unemployment Compensation Law."      The act of December 5, 1936
16   (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
17   Compensation Law.
18      "Workers' Compensation Act."      The act of June 2, 1915
19   (P.L.736, No.338), known as the Workers' Compensation Act.
20   Section 3.   Employee determination.
21      A worker on a traveling sales crew shall be considered an
22   employee rather than an independent contractor unless the hiring
23   entity demonstrates that all of the following conditions are
24   satisfied:
25          (1)   The individual is free from the control and
26      direction of the hiring entity in connection with the
27      performance of the work, both under the contract for the
28      performance of the work and in fact.
29          (2)   The individual performs work that is outside the
30      usual course of the hiring entity's business.

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 1            (3)   The individual is customarily engaged in an
 2      independently established trade, occupation or business of
 3      the same nature as that involved in the work performed.
 4   Section 4.     Improper classification of employees.
 5      (a)   Violation.--An employer, officer or agent of an employer
 6   shall be in violation of this act if the employer, officer or
 7   agent:
 8            (1)   fails to properly classify an individual as an
 9      employee for purposes of the Workers' Compensation Act and
10      fails to provide the coverage required under the Workers'
11      Compensation Act; or
12            (2)   fails to properly classify an individual as an
13      employee for purposes of the Unemployment Compensation Law
14      and fails to pay contributions, reimbursements or other
15      amounts required to be paid under the Unemployment
16      Compensation Law.
17      (b)   Separate offenses.--Each individual who is not properly
18   classified as an employee shall be the basis of a separate
19   violation of this section.
20      (c)   Order to show cause.--
21            (1)   If the secretary receives information indicating
22      that an individual has violated this act, the secretary may
23      investigate the matter and issue an order to show cause why
24      the individual should not be found in violation of this act.
25            (2)   A person served with an order to show cause shall
26      have a period of 20 days from the date the order is served to
27      file an answer in writing.
28            (3)   If the individual fails to file a timely and
29      adequate answer to the order to show cause, the secretary
30      may, following notice and hearing, do any of the following:

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 1                (i)    petition a court of competent jurisdiction to
 2            issue a stop-work order; or
 3                (ii)    immediately assess administrative penalties as
 4            provided in section 11.
 5      (d)   Enforcement.--If, subsequent to issuing an order to show
 6   cause under subsection (c), the secretary finds probable cause
 7   that an employer has committed a criminal violation of this act,
 8   the secretary shall refer the matter to the Office of Attorney
 9   General for investigation or impose administrative penalties
10   under section 11.
11      (e)   Acting in concert with other parties.--A party that does
12   not meet the definition of "employer" in section 2 but
13   intentionally contracts with an employer knowing the employer
14   intends to misclassify employees in violation of this act shall
15   be subject to the same penalties, remedies or other actions as
16   the employer found to be in violation of this act.
17      (f)   Defense.--It shall be a defense to an alleged violation
18   of this section if the person for whom the services are
19   performed in good faith believed that the individual who
20   performed the services qualified as an independent contractor at
21   the time the services were performed.
22   Section 5.   Registration required.
23      (a)   Authorization.--No person may employ, offer to employ or
24   otherwise recruit an individual to work as a traveling sales
25   crew worker without first obtaining a certificate of
26   registration from the department.
27      (b)   Application for certificate.--An individual seeking a
28   certificate of registration must complete an application meeting
29   the minimum requirements specified in subsection (c) and pay a
30   registration fee determined by the department. A certificate of

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 1   registration is valid for 12 months unless sooner suspended,
 2   restricted or revoked and is nontransferable. A registrant may
 3   renew a certificate of registration by submitting an application
 4   under this subsection and paying the registration fee not less
 5   than 30 days before the expiration date of the certificate of
 6   registration.
 7      (c)   Information required.--An application for a certificate
 8   of registration must contain all of the following information:
 9            (1)   The name of the applicant, the address and telephone
10      number of the applicant's principal place of business and, if
11      the applicant is engaged in sales activities on behalf of a
12      principal, the name, address and telephone number of the
13      principal.
14            (2)   If the applicant is a corporation, the date and
15      place of the applicant's incorporation or, if the applicant
16      is a limited liability company, the date and place of the
17      applicant's organization.
18            (3)   The names and permanent home addresses of the
19      proprietors, managing partners, managers or principal
20      officers of the applicant, together with proof of
21      identification of those individuals, which may be in the form
22      of a birth certificate or a valid driver's license issued by
23      the Department of Transportation or by another state that
24      contains a photograph of the license holder.
25            (4)   The names, permanent home addresses, driver's
26      license numbers and dates of birth of the employees, agents
27      or representatives of the applicant who supervise or
28      transport traveling sales crew workers.
29            (5)   Information regarding the criminal record, if any,
30      of proprietors, managing partners, managers or principal

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 1    officers of the applicant and of the employees, agents or
 2    representatives of the applicant who supervise or transport
 3    traveling sales crew workers.
 4        (6)    The Social Security number or Federal employer
 5    identification number of the applicant.
 6        (7)    The type of sales activities to be performed and the
 7    nature of the consumer goods or services to be sold by the
 8    traveling sales crew workers of the applicant. If the goods
 9    to be sold are magazine subscriptions, the applicant shall
10    provide the names, addresses and telephone numbers of the
11    publishers of those magazines.
12        (8)    A statement identifying each motor vehicle that will
13    be used to transport the applicant's traveling sales crew
14    workers, including the type and license number of each motor
15    vehicle, and documentation showing that each motor vehicle is
16    in compliance with applicable Federal and State safety
17    standards.
18        (9)    A statement indicating whether the duties of the
19    applicant's traveling sales crew workers will include the
20    storage, handling or transportation of hazardous materials or
21    may result in any other exposure of those traveling sales
22    crew workers to hazardous materials and, if so, documentation
23    showing that the applicant is in compliance with all Federal
24    and State safety standards that are applicable to the
25    storage, handling and transportation of the hazardous
26    materials.
27        (10)     Any other information that the department considers
28    relevant to the protection of the health, safety and welfare
29    of the traveling sales crew workers employed by the
30    applicant.

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 1      (d)   Receipt of application.--
 2            (1)   The department shall, upon receiving an application,
 3      investigate the applicant to determine whether the applicant
 4      is qualified under subsection (c) to receive a certificate of
 5      registration. The investigation shall include a criminal
 6      history search by the department of the proprietors, managing
 7      partners, managers or principal officers of the applicant and
 8      of the employees, agents or representatives of the applicant
 9      who supervise or transport traveling sales crew workers.
10            (2)   If the applicant being investigated is, or at any
11      time within the five years preceding the date of the
12      application has been, a nonresident of this Commonwealth or
13      if the department determines that any information obtained as
14      a result of the investigation provides a reasonable basis for
15      further investigation, the department may require the
16      applicant being investigated to be fingerprinted. The
17      department may provide for the submission of the fingerprint
18      cards to the Federal Bureau of Investigation for the purposes
19      of verifying the identification of the applicant and
20      obtaining the applicant's criminal conviction record. The
21      department shall keep confidential the criminal history
22      record information.
23      (e)   Issuance.--Subject to subsection (f) and after
24   completing the investigation under subsection (d), the
25   department shall issue a certificate of registration to the
26   applicant if the department determines that the applicant meets
27   the minimum requirements under this section and any rules
28   promulgated by the department for issuance of a certificate of
29   registration and is satisfied that the applicant will comply
30   with this section and those rules.

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 1      (f)   Denial.--The department may deny, suspend, revoke,
 2   restrict or refuse to renew a certificate of registration if the
 3   department determines that any of the following apply:
 4            (1)   The applicant or registrant is not the real party in
 5      interest with respect to the application or certificate of
 6      registration and the real party in interest has previously
 7      been denied issuance or renewal of a certificate of
 8      registration, has had a certificate of registration
 9      suspended, revoked or restricted or is not qualified to
10      receive a certificate of registration under subsection (e).
11            (2)   A proprietor, managing partner, manager or principal
12      officer of the applicant, or an employee, agent or
13      representative of the applicant who supervises or transports
14      traveling sales crew workers has been convicted of a
15      disqualifying offense, as determined by the department,
16      within the five years preceding the date of the application.
17            (3)   The applicant or registrant has made a material
18      misrepresentation or false statement in the application for
19      the certificate of registration.
20            (4)   The applicant or registrant has failed to notify the
21      department of any change in the information submitted in the
22      application as required under subsection (h).
23            (5)   The applicant or registrant has:
24                  (i)    failed to maintain proof of financial
25            responsibility as required under subsection (i);
26                  (ii)    failed to comply with the written disclosure
27            statement requirements under subsection (c)(9);
28                  (iii)    failed to pay wages, provide a statement or
29            keep, preserve or furnish records as required under
30            section 6;

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 1                  (iv)    violated a safety standard under section 7;
 2                  (v)    failed to maintain insurance coverage as
 3            required under section 8;
 4                  (vi)    engaged in a practice prohibited under section
 5            9;
 6                  (vii)    failed to pay a penalty imposed under section
 7            11 or to comply with an order of the department imposed
 8            as a result of a violation of this section or any rule
 9            adopted by the department under section 15; or
10                  (viii)    otherwise failed to comply with this section
11            or any rule adopted by the department.
12      (g)     Certificate of registration.--A registrant and the
13   employees, agents and representatives of a registrant who
14   supervise or transport traveling sales crew workers shall carry
15   at all times while engaging in traveling sales crew activities a
16   copy of the registrant's certificate of registration and shall
17   exhibit that copy upon the request of a deputy of the
18   department, law enforcement officer or person with whom the
19   registrant, employee, agent or representative is doing business.
20   Failure to exhibit a copy of the certificate of registration
21   upon request is prima facie evidence of a violation of this
22   section.
23      (h)     Changes.--If any change occurs in any of the information
24   submitted to the department under subsection (c), the registrant
25   shall notify the department of that change within 30 days after
26   the change occurs.
27      (i)     Financial responsibility.--
28            (1)   An applicant shall establish proof of ability to pay
29      any compensation owed to a traveling sales crew worker
30      employed by the applicant and any penalties that may be

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 1    imposed under section 11.
 2          (2)   An applicant shall prove ability to pay under
 3    paragraph (1) by maintaining one of the following commitments
 4    in an amount approved by the department, but not less than
 5    $10,000 and in a form approved by the department:
 6                (i)    A bond.
 7                (ii)    A certificate of deposit.
 8                (iii)    An escrow account.
 9                (iv)    An irrevocable letter of credit.
10          (3)   The commitment described in paragraph (2) shall be
11    established in favor of or made payable to the department,
12    for the benefit of the Commonwealth and any traveling sales
13    crew worker who does not receive the compensation earned by
14    the worker. The applicant shall file with the department any
15    agreement, instrument or other document necessary to enforce
16    the commitment against the applicant or any relevant third
17    party or both.
18    (j)   Disclosure statement.--
19          (1)   At the time an individual is offered employment as a
20    traveling sales crew worker or is otherwise recruited to work
21    as a traveling sales crew worker, the employer shall provide
22    the individual with a written disclosure statement of the
23    terms of employment. If the individual accepts the offer of
24    employment, the employer and the individual shall sign the
25    written disclosure statement. A written disclosure statement
26    shall include all of the following information:
27                (i)    The place or places of employment, stated with
28          as much specificity as possible.
29                (ii)    The compensation, including wage rates,
30          commissions, bonuses and contest awards, to be paid.

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 1              (iii)    The pay period and the manner in which
 2        compensation will be paid.
 3              (iv)    The types of work in which the individual may
 4        be employed.
 5              (v)    The number of days per week and hours per day
 6        that the individual may be required to engage in sales
 7        activities or related support work.
 8              (vi)    The nature and frequency of any employment-
 9        related meetings that the individual may be required to
10        attend, the time of day of those meetings and how
11        compensation is paid for attendance at those meetings.
12              (vii)    The period of employment, including the
13        approximate beginning and ending dates of employment.
14              (viii)    A description of the board, lodging and other
15        facilities to be provided by the employer to the
16        individual and any costs to be charged to the individual
17        for those facilities.
18              (ix)    A description of the transportation to be
19        provided by the employer to the individual.
20              (x)    If the employment will involve the storage,
21        handling or transportation of hazardous materials or may
22        involve any other exposure to hazardous materials, a
23        description of the hazardous materials.
24              (xi)    Whether workers' compensation is provided and,
25        if so, the name and telephone number of the employee,
26        agent or representative of the employer to whom notice of
27        a claim for workers' compensation must be provided and
28        the time period within which that notice must be
29        provided.
30        (2)   An employer of a traveling sales crew worker shall

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 1      comply with the terms of a disclosure statement provided
 2      under paragraph (1). An employer may change the terms of a
 3      disclosure statement, but no change is effective until a
 4      supplemental disclosure statement is signed by the employer
 5      and the traveling sales crew worker. Any change to the terms
 6      of a disclosure statement may apply prospectively only.
 7   Section 6.     Payment of compensation, deductions, statements and
 8                  records.
 9      (a)   Payment of compensation.--An employer shall pay all
10   compensation earned by a traveling sales crew worker on regular
11   paydays designated in advance by the employer but in no case
12   less often than semimonthly. Compensation shall be paid in
13   United States currency or by check or draft.
14      (b)   Deductions.--An employer may deduct from a traveling
15   sales crew worker's compensation the cost to the employer of
16   furnishing board, lodging or other facilities to the worker if:
17            (1)   the board, lodging or other facilities are
18      customarily furnished by the employer to the traveling sales
19      crew workers of the employer;
20            (2)   the amount deducted does not exceed the fair market
21      value of the board, lodging or other facilities and does not
22      include any profit to the employer; and
23            (3)   the traveling sales crew worker has previously
24      authorized the deduction by signing a written disclosure
25      statement under section 5(j) that includes a description of
26      the board, lodging and other facilities to be provided and
27      any costs to be charged to the traveling sales crew worker
28      for those facilities.
29      (c)   Records.--An employer shall provide with each payment of
30   compensation to a traveling sales crew worker a written

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 1   statement itemizing the amount of gross and net compensation
 2   paid to the worker and the amount of and reason for each
 3   deduction from the amount of gross compensation. An employer
 4   shall:
 5            (1)   keep records of the information specified in this
 6      paragraph with respect to each traveling sales crew worker of
 7      the employer;
 8            (2)   preserve those records for three years after the
 9      worker leaves the employment of the employer; and
10            (3)   furnish those records to the department on request.
11      (d)   Claims.--A traveling sales crew worker who is owed
12   compensation may file a wage claim with the department.
13   Section 7.     Worker safety.
14      (a)   Vehicles.--An employer of a traveling sales crew worker
15   shall maintain and operate, or cause to be maintained and
16   operated, a motor vehicle used to transport a traveling sales
17   crew worker in compliance with applicable Federal and State
18   safety standards, including any additional safety standards
19   relating specifically to the transportation of traveling sales
20   crew workers prescribed by the department by regulation
21   promulgated under section 15. In prescribing additional safety
22   standards, the department shall consider all of the following:
23            (1)   The types of motor vehicles that are commonly used
24      to transport traveling sales crew workers.
25            (2)   The safe passenger-carrying capacity of those motor
26      vehicles.
27            (3)   The extent to which a proposed safety standard would
28      cause an undue burden to traveling sales crew employers.
29            (4)   Any safety standards prescribed by the United States
30      Department of Transportation under 49 U.S.C. (relating to

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 1      transportation) that are applicable to the maintenance and
 2      operation of a motor vehicle that is commonly used to
 3      transport traveling sales crew workers.
 4      (b)   Hazardous materials.--If the duties of a traveling sales
 5   crew worker include the storage, handling or transportation of
 6   hazardous materials or may result in any other exposure of a
 7   traveling sales crew worker to hazardous materials, the employer
 8   shall ensure that the hazardous materials are stored, handled
 9   and transported and that the traveling sales crew worker is
10   trained in the safe storage, handling and transportation of
11   hazardous materials, in accordance with all applicable Federal
12   and State safety standards, including any additional safety
13   standards relating specifically to the storage, handling and
14   transportation of hazardous materials by traveling sales crew
15   workers or to the exposure of traveling sales crew workers to
16   hazardous materials prescribed by the department by regulation
17   promulgated under section 15. In prescribing additional safety
18   standards, the department shall consider all of the following:
19            (1)   The types of hazardous materials that are included
20      in products commonly sold by traveling sales crews.
21            (2)   The extent to which a proposed safety standard would
22      cause an undue burden to traveling sales crew employers.
23            (3)   Any safety standards prescribed by the United States
24      Department of Transportation under 49 U.S.C. Ch. 51 (relating
25      to transportation of hazardous material) or by the Federal
26      Occupational Safety and Health Administration under 29 U.S.C.
27      Ch. 15 (relating to occupational safety and health) that are
28      applicable to the storage, handling and transportation of
29      hazardous materials by a traveling sales crew worker or to
30      any other exposure of a traveling sales crew worker to

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 1      hazardous materials.
 2   Section 8.   Insurance coverage.
 3      The employer of a traveling sales crew worker shall have in
 4   force a policy of insurance that insures the employer, in an
 5   amount prescribed by the department by regulation promulgated
 6   under section 15, against liability for damages to persons and
 7   property arising out of:
 8          (1)   the ownership or operation by the employer or by an
 9      employee, agent or representative of the employer of a motor
10      vehicle that is used to transport a traveling sales crew
11      worker; and
12          (2)   a negligent act or omission of the employer or of an
13      employee, agent or representative of the employer.
14   Section 9.   Prohibited practices.
15      No employer of a traveling sales crew worker and no employee,
16   agent or representative of that employer who supervises or
17   transports traveling sales crew workers may do any of the
18   following:
19          (1)   Employ or permit to work as a traveling sales crew
20      worker a person under 18 years of age or employ or permit to
21      work as a traveling sales crew worker a person 18 years of
22      age or older who has been adjudicated incompetent, without
23      the permission of the person's guardian.
24          (2)   Require a traveling sales crew worker to engage in
25      any in-person sales or solicitation activities before 9 a.m.
26      or after 9 p.m.
27          (3)   Consider a traveling sales crew worker to be an
28      independent contractor rather than an employee.
29          (4)   Require a traveling sales crew worker to purchase
30      any consumer goods or services solely from the employer or to

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 1      pay any of the employer's business expenses, except as
 2      permitted under section 6(b).
 3            (5)    Abandon a traveling sales crew worker who is unable
 4      to work due to illness or injury or who is discharged from
 5      employment for reasons other than misconduct without
 6      providing for the return of the traveling sales crew worker
 7      to their permanent place of residence.
 8            (6)    Require a traveling sales crew worker to relinquish
 9      custody of any personal property to the employer, to any
10      employee, agent or representative of the employer who
11      supervises or transports traveling sales crew workers or to
12      any other traveling sales crew worker of the employer.
13            (7)    Prohibit or restrict a traveling sales crew worker
14      from contacting a family member, friend or other person while
15      traveling with a traveling sales crew.
16            (8)    Intentionally inflict or threaten to inflict bodily
17      harm on a traveling sales crew worker or damage to the
18      property of a traveling sales crew worker as a means of
19      discipline or motivation.
20            (9)    Advise or counsel a traveling sales crew worker to
21      make false representations to a person to whom the traveling
22      sales crew worker is offering consumer goods or services
23      concerning the traveling sales crew worker's motivation for
24      selling those goods or services.
25            (10)    Discharge or discriminate against a person for
26      opposing a practice prohibited under this section.
27   Section 10.     Criminal offenses.
28      (a)   Offense defined.--
29            (1)    An employer, or officer or agent of an employer,
30      that intentionally violates section 4(a) commits:

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 1                   (i)    A misdemeanor of the third degree for a first
 2             offense.
 3                   (ii)    A misdemeanor of the second degree for a second
 4             or subsequent offense.
 5             (2)   An employer, or officer or agent of an employer,
 6      that negligently violates section 4(a) commits a summary
 7      offense and shall, upon conviction, be sentenced to pay a
 8      fine of not more than $1,000.
 9             (3)   Evidence of a prior conviction under this subsection
10      shall be admissible as evidence of intent under subsection
11      (a).
12      (b)    Concurrent jurisdiction.--
13             (1)   The Attorney General shall have concurrent
14      prosecutorial jurisdiction with the district attorney of the
15      appropriate county for violations under this section.
16             (2)   No person charged with a violation of this section
17      by the Attorney General may have standing to challenge the
18      authority of the Attorney General to prosecute the case. If a
19      challenge is made, the challenge shall be dismissed and no
20      relief may be available in the courts of this Commonwealth to
21      the person making the challenge.
22   Section 11.      Administrative penalties.
23      (a)    Assessment and collection.--When the secretary finds
24   that a person has violated this act, the secretary may assess
25   and collect civil penalties of not more than $1,000 for the
26   first violation and not more than $2,500 for each subsequent
27   violation.
28      (b)    Factors to be considered.--When determining the amount
29   of the penalty to be imposed, the secretary shall consider
30   factors, including, but not limited to:

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 1            (1)   The history of previous violations by the employer.
 2            (2)   The seriousness of the violation.
 3            (3)   The good faith of the employer.
 4            (4)   The size of the employer's business.
 5   Section 12.    Procedure.
 6      (a)   Hearings.--Actions taken under sections 4(c) and 6(d)
 7   shall be subject to the provisions of 2 Pa.C.S. (relating to
 8   administrative law and procedure).
 9      (b)   Subpoena powers.--The department shall have the power to
10   subpoena witnesses, administer oaths, examine witnesses and take
11   testimony or compel the production of documents. The secretary
12   may petition Commonwealth Court to enforce any order or subpoena
13   issued under this act.
14   Section 13.    Certain agreements prohibited.
15      (a)   Violation.--No person may require or demand that an
16   individual enter into an agreement or sign a document that
17   results in the improper classification of that individual as an
18   independent contractor.
19      (b)   Penalty.--Each violation of this section shall be
20   considered a separate offense.
21   Section 14.    Retaliation prohibited.
22      (a)   Prohibition.--It shall be unlawful for an employer, or
23   officer or agent of an employer, to discriminate in any manner
24   or take adverse action against any person in retaliation for
25   exercising rights protected under this act. Rights protected
26   under this act include, but are not limited to, the right to
27   file a complaint or inform any person about an employer's
28   noncompliance with this act.
29      (b)   Good faith allegations of noncompliance.--A person who
30   in good faith alleges noncompliance with this act shall be

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 1   afforded the rights provided by this section, notwithstanding
 2   the person's failure to prevail on the merits.
 3      (c)   Rebuttable presumptions.--Taking adverse action against
 4   a person within 90 days of the person's exercise of rights
 5   protected under this act shall raise a rebuttable presumption of
 6   having done so in retaliation for the exercise of those rights.
 7   Section 15.   Rules and regulations.
 8      The department may adopt rules and promulgate regulations
 9   necessary to implement and enforce this act.
10   Section 16.   Effective date.
11      This act shall take effect in 120 days.




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