Delaware 2025-2026 Regular Session

Delaware Senate Bill SB63

Introduced
3/6/25  

Caption

An Act To Amend Title 19 Of The Delaware Code Relating To Labor.

Impact

If enacted, SB63 would enhance the accountability of general contractors in the state, making them jointly liable for violations committed by subcontractors. This move aims to strengthen the enforcement of labor standards and protect employees from being wrongfully classified. Additionally, the bill allows for stricter penalties for employers who do not adhere to registration requirements, thus providing a mechanism for the Department of Labor to take action against non-compliant contractors. This change is expected to create a more fair and compliant labor market in Delaware.

Summary

Senate Bill 63 aims to amend Title 19 of the Delaware Code, particularly in the context of labor laws. The primary objective of the bill is to address the issue of improper classification of employees as independent contractors, which can lead to unfair labor practices and violations of tax and insurance laws. By holding general contractors responsible for the actions of their subcontractors, the bill seeks to ensure compliance with existing labor regulations, thereby protecting the rights of workers and maintaining a level playing field for compliant contractors.

Sentiment

The sentiment around SB63 appears largely supportive among labor advocates who argue that it reinforces employee protections and addresses existing loopholes in labor law enforcement. However, some concerns have been raised regarding the potential burden this could impose on general contractors, who might find themselves liable for the actions of subcontractors they have limited control over. Ultimately, the debate reflects a tension between promoting responsible business practices and ensuring that workers are adequately protected.

Contention

Notable points of contention focus on the balance between regulatory oversight and economic impact on the contracting industry. While proponents assert that making general contractors liable for subcontractors' compliance is essential for safeguarding employee rights, critics express fears that it could lead to increased costs and complications in hiring practices. The discussions underscore a critical dialogue about the role of legislation in shaping labor markets and its implications for businesses and workers alike.

Companion Bills

No companion bills found.

Similar Bills

CA SB61

Private works of improvement: retention payments.

CA SB597

Labor-related liabilities: direct contractor and subcontractor.

HI HB274

Relating To Subcontractors.

NJ A4719

Requires certain notifications to subcontractors listed on bid for State contract by prime contractor.

CT HB06955

An Act Concerning A Contractor's Responsibility For Unpaid Wages On A Construction Contract.

PA HB610

In public works employment verification, further providing for definitions, for duty of public works contractors and subcontractors, for verification form, for violations, for enforcement and sanctions, for Public Works Employment Verification Account, for protection from retaliation, for good faith immunity and for public works contractor and subcontractor liability; and making an editorial change.

IL HB3631

CAP DEV BD-SUBS

CT HB05685

An Act Prohibiting Pay-if-paid Clauses In Construction Contracts And Ensuring Timely Payment Of Construction Subcontractors And Suppliers.