HB 718 — An Act amending the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law, 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.

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
 1   Amending the act of July 14, 1961 (P.L.637, No.329), entitled
 2      "An act relating to the payment of wages or compensation for
 3      labor or services; providing for regular pay days; conferring
 4      powers and duties upon the Department of Labor and Industry,
 5      including powers and duties with respect to the civil
 6      collection of wages; providing civil and criminal penalties
 7      for violations of the act; providing for their collection and
 8      disposition and providing for additional civil damages,"
 9      further providing for definitions; providing for duty of
10      department to report and for investigations; further
11      providing for civil remedies and penalties, for liquidated
12      damages and for criminal penalties; providing for employer
13      liability; and establishing the Wage Enforcement Fund.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.    The definition of "employer" in section 2.1 of
17   the act of July 14, 1961 (P.L.637, No.329), known as the Wage
18   Payment and Collection Law, is amended and the section is
19   amended by adding a definition to read:
20      Section 2.1.    Definitions.--The following words and phrases
21   when used in this act shall have, unless the context clearly
22   indicates otherwise, the meanings given to them in this section:
 1      * * *
 2      "Employer." [Includes every person, firm, partnership,
 3   association, corporation, receiver or other officer of a court
 4   of this Commonwealth and any agent or officer of any of the
 5   above-mentioned classes employing any person in this
 6   Commonwealth.] Any of the following classes employing a person
 7   in this Commonwealth:
 8      (1)   The Commonwealth.
 9      (2)   A political subdivision of the Commonwealth.
10      (3)   An authority created by the General Assembly.
11      (4)   An instrumentality or agency of the Commonwealth.
12      (5)   Every person, firm, partnership, association,
13   corporation, receiver or other officer of a court of this
14   Commonwealth.
15      (6)   An agent or officer of any of the above-mentioned
16   classes specified under paragraph (1), (2), (3), (4) or (5).
17      * * *
18      "High-violation industry."    An industry that incurs at least
19   25 violations over a two-year period.
20      * * *
21      Section 2.     The act is amended by adding sections to read:
22      Section 8.1.    Duty of Department to Report.--(a)   The
23   department shall collect on a quarterly basis the following data
24   categorized by industry:
25      (1)   The number of violations.
26      (2)   The amount of fines collected.
27      (3)   The nature of violations.
28      (4)   The number of individual complaints filed.
29      (5)   The number of complaints resolved.
30      (6)   The amount of unpaid wages owed.

20250HB0718PN0737                    - 2 -
 1      (7)    The amount of unpaid wages recovered.
 2      (8)    The number of pending individual complaints.
 3      (9)    The number of workplaces investigated from complaints.
 4      (10)    The number of workplaces investigated proactively.
 5      (11)    The number of workplaces reinvestigated following
 6   violations.
 7      (12)    The number of subsequent violations.
 8      (b)    On a semiannual basis, the department shall prepare and
 9   submit a report of the data specified under subsection (a) to
10   the chairperson of the Labor and Industry Committee of the
11   Senate and the chairperson of the Labor and Industry Committee
12   of the House of Representatives.
13      (c)    The department shall post each report under subsection
14   (b) on the publicly accessible Internet website of the
15   department.
16      Section 8.2.    Investigations.--The secretary shall:
17      (1)    Investigate high-violation industries no less than
18   quarterly.
19      (2)    Train investigators to recognize basic labor, health and
20   safety violations.
21      (3)    Engage in cross-agency referrals to protect workers'
22   rights.
23      Section 3.    Section 9.1(c) of the act is amended and the
24   section is amended by adding a subsection to read:
25      Section 9.1.    Civil Remedies and Penalties.--* * *
26      (c)    The employe or group of employes, labor organization or
27   party to whom any type of wages is payable may, in the
28   alternative, inform the secretary of the wage claim against an
29   employer or former employer, and the secretary shall, unless the
30   claim appears to be frivolous, immediately notify the employer

20250HB0718PN0737                   - 3 -
 1   or former employer of such claim by certified mail. If the
 2   employer or former employer fails to pay the claim or make
 3   satisfactory explanation to the secretary of his failure to do
 4   so within ten days after receipt of such certified notification,
 5   thereafter, the employer or former employer shall be liable for
 6   a penalty of [ten percent (10%) of that portion of the claim
 7   found to be justly due.] two thousand dollars ($2,000) per
 8   violation of this act or the regulations or equal to triple the
 9   unpaid wages in damages to the employe, whichever is greater,
10   and attorney fees. Each week in which an employe is paid less
11   than the applicable wage under this act and each employe who is
12   paid less than the prescribed rate shall constitute a separate
13   violation that shall be subject to a separate penalty. A good
14   faith dispute or contest as to the amount of wages due or the
15   good faith assertion of a right of set-off or counter-claim
16   shall be deemed a satisfactory explanation for nonpayment of
17   such amount in dispute or claimed as a set-off or counter-claim.
18   The secretary [shall have a cause of action against the employer
19   or former employer for recovery of such penalty and the same]
20   may issue orders and levy the civil penalty only after affording
21   the accused party the opportunity for a hearing as provided
22   under 2 Pa.C.S. (relating to administrative law and procedure).
23   The penalty may be included in any subsequent action by the
24   secretary on said wage claim or may be exercised separately
25   after adjustment of such wage claim without court action. At the
26   request of an employe, the department shall assign that portion
27   of the money, which is due to the employe, that constitutes
28   wages or wage supplements, interest on wages or wage supplements
29   and liquidated damages to the employe and shall file an order in
30   that amount in the name of the employe with the county clerk of

20250HB0718PN0737                 - 4 -
 1   the county in which the employer of the employe resides or has a
 2   place of business. The filing of the order shall have the full
 3   force and effect of a judgment duly docketed in the office of
 4   the clerk.
 5      * * *
 6      (h)    (1)   It is unlawful for an employer or the employer's
 7   agent, or the officer or agent of a corporation, to discharge or
 8   in any other manner discriminate against any employe who:
 9      (i)    files or submits a complaint under this act;
10      (ii)    cooperates with the secretary or the secretary's
11   representative, submits evidence, testifies or is about to
12   testify before the secretary or the secretary's representative
13   in any investigation or proceeding under or related to this act;
14      (iii)     the employer believes may take the actions under this
15   paragraph;
16      (iv)    exercises any right under this act or any regulation
17   implementing its provisions; or
18      (v)    provides assistance or information to another employe
19   about this act.
20      (2)    (i)   A first offense under this subsection shall be
21   graded as a summary offense.
22      (ii)    A second or subsequent offense under this subsection,
23   committed within a five-year period of the prior offense, shall
24   be graded as a misdemeanor of the third degree and shall be
25   punishable by a fine of not less than one thousand dollars
26   ($1,000) nor more than three thousand dollars ($3,000) or to
27   imprisonment of not less than 10 days nor more than 100 days.
28      (iii)     Each day of the failure to comply with this subsection
29   or the regulations of this subsection and each employe who is
30   discharged or in any other manner discriminated against shall

20250HB0718PN0737                    - 5 -
 1   constitute a separate offense subject to a separate penalty.
 2      (iv)     An employer and the employer's agent, or the officer or
 3   agent of a corporation, may also be required to pay the employe
 4   an amount set by the court sufficient to compensate the employe
 5   and deter future violations.
 6      Section 4.    Sections 10 and 11.1 of the act are amended to
 7   read:
 8      Section 10.    Liquidated Damages.--Where wages remain unpaid
 9   for thirty days beyond the regularly scheduled payday, or, in
10   the case where no regularly scheduled payday is applicable, for
11   sixty days beyond the filing by the employe of a proper claim or
12   for sixty days beyond the date of the agreement, award or other
13   act making wages payable, or where shortages in the wage
14   payments made exceed five percent (5%) of the gross wages
15   payable on any two regularly scheduled paydays in the same
16   calendar quarter, and no good faith contest or dispute of any
17   wage claim including the good faith assertion of a right of set-
18   off or counter-claim exists accounting for such non-payment, the
19   employe shall be entitled to claim, in addition, as liquidated
20   damages an amount equal to [twenty-five percent (25%) of the
21   total amount of wages due, or five hundred dollars ($500),
22   whichever is greater.] triple the unpaid wages due or two
23   thousand dollars ($2,000), whichever is greater, and attorney
24   fees. Each week in which an employe is paid less than the
25   applicable wage under this act shall constitute a separate
26   violation that shall be subject to a separate penalty.
27      Section 11.1.    Criminal Penalties.--(a)   The secretary or any
28   employe, group of employes, labor organization or party to whom
29   any type of wages is payable may institute prosecutions under
30   this act.

20250HB0718PN0737                    - 6 -
 1      (b)    [In addition to any other penalty or punishment
 2   otherwise prescribed by law, any employer who violates any
 3   provisions of this act shall be guilty of a summary offense and,
 4   upon conviction thereof, shall be punished by a fine of not more
 5   than three hundred dollars ($300), or by imprisonment up to 90
 6   days, or by both, for each offense.] (1)   Each day of the
 7   failure to comply with this act, and each employe against whom
 8   the employer or officer or agent of a corporation violated any
 9   other provision of this act, shall constitute a separate offense
10   that shall be subject to a separate penalty. The good faith
11   contest or dispute by any employer of any wage claim or the good
12   faith assertion of a right of set-off or counter-claim shall not
13   be considered a violation of this act: Provided, That the
14   employer has paid all wages due in excess of the amount in
15   dispute or asserted to be subject to a right of set-off or
16   counter-claim. [Nonpayment of wages to, on account of, or for
17   the benefit of each individual employe shall constitute a
18   separate offense.]
19      (2)    In addition to any other penalty or punishment otherwise
20   prescribed by law, an employer in violation of any provision of
21   this act commits:
22      (i)    A summary offense for a first offense if the total
23   amount of unpaid wages is less than one hundred fifty dollars
24   ($150).
25      (ii)    A misdemeanor of the second degree for a second offense
26   if the total amount of unpaid wages is less than one hundred
27   fifty dollars ($150).
28      (iii)    A misdemeanor of the first degree for a first or
29   second offense if the total amount of unpaid wages is more than
30   one hundred fifty dollars ($150).

20250HB0718PN0737                   - 7 -
 1      (iv)    A felony of the third degree for a third or subsequent
 2   offense regardless of the total amount of unpaid wages.
 3      (c)    Where such employer is a corporation, the president,
 4   secretary, treasurer or officers exercising corresponding
 5   functions shall each be guilty of such summary offense.
 6      (d)    [All fines or penalties collected under this act shall
 7   be paid into the State Treasury through the Department of
 8   Revenue to the credit of the General Fund.] All fines and
 9   penalties collected under section 9.1 and this section shall be
10   deposited into the Wage Enforcement Fund established under
11   section 11.3.
12      Section 5.    The act is amended by adding sections to read:
13      Section 11.2.    Employer Liability.--An employer similar in
14   operation and ownership to another employer found in violation
15   of section 9.1(c) or (h) or 11.1(b) shall be deemed the same
16   employer for the purposes of this section if the employes of the
17   similar employer are engaged in substantially the same work in
18   substantially the same working conditions under substantially
19   the same supervisors, or if the similar employer has
20   substantially the same production process, produces
21   substantially the same products and has the same body of
22   customers as the other employer found in violation of section
23   9.1(c) or (h) or 11.1(b). The similar employer shall continue to
24   be subject to section 9.1(c) or (h) or 11.1(b) and shall be
25   liable for the acts of the other employer under section 9.1(c)
26   or (h) or 11.1(b), as applicable.
27      Section 11.3.    Wage Enforcement Fund.--(a)   The Wage
28   Enforcement Fund is established in the State Treasury.
29      (b)    The money in the fund shall consist of the fines and
30   penalties collected under sections 9.1 and 11.1.

20250HB0718PN0737                   - 8 -
 1      (c)    Money in the fund is appropriated on a continuing basis,
 2   upon approval of the Governor, to the department for periodic
 3   inspections, investigations of violations and the enforcement of
 4   this act and the act of January 17, 1968 (P.L.11, No. 5), known
 5   as The Minimum Wage Act of 1968, including staffing for
 6   inspection, investigation and enforcement under this act and The
 7   Minimum Wage Act of 1968.
 8      (d)    Money may not be expended or obligated from the fund to
 9   a third party for a purpose other than that specified under
10   subsection (c).
11      (e)    Money in the fund shall not lapse at any time or be
12   transferred to any other fund.
13      (f)    (1)   No later than June 30 of each calendar year, the
14   department shall issue a report regarding the fund.
15      (2)    Each report under this subsection shall be transmitted
16   to the Governor and the General Assembly, through the Secretary-
17   Parliamentarian of the Senate and the Chief Clerk of the House
18   of Representatives.
19      (3)    Each report under this subsection must include:
20      (i)    An accounting for the fines collected and deposited into
21   the fund.
22      (ii)     The expenditures and transfers from the fund during the
23   prior year.
24      (iii)    A description of the purposes for which expenditures
25   from the fund were made in the prior year.
26      (iv)     A full account of the data collections required of the
27   department under section 7 of The Minimum Wage Act of 1968.
28      (4)    No later than July 1 of each calendar year, each report
29   under this subsection shall be posted on the publicly accessible
30   Internet website of the department.

20250HB0718PN0737                    - 9 -
1      (g)   As used in this section, the following words and phrases
2   shall have the meanings given to them in this subsection unless
3   the context clearly indicates otherwise:
4      "Fund."   The Wage Enforcement Fund established under
5   subsection (a).
6      Section 6.     This act shall take effect in 60 days.




20250HB0718PN0737                   - 10 -