SPONSOR: Sen. Walsh & Rep. Osienski & Rep. K. Williams Reps. Burns, Heffernan, Morrison, Romer DELAWARE STATE SENATE 153rd GENERAL ASSEMBLY SENATE BILL NO. 63 AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO LABOR.
SPONSOR: Sen. Walsh & Rep. Osienski & Rep. K. Williams Reps. Burns, Heffernan, Morrison, Romer
SPONSOR: Sen. Walsh & Rep. Osienski & Rep. K. Williams
Reps. Burns, Heffernan, Morrison, Romer
SPONSOR:
Sen. Walsh & Rep. Osienski & Rep. K. Williams
Reps. Burns, Heffernan, Morrison, Romer
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE BILL NO. 63
AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO LABOR.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: Section 1. Amend 3503, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly: 3503. Acts Requirements; acts prohibited. (e) (1) A person must not knowingly conspire with, aid and abet, assist, advise, or facilitate an employer with the intent of violating the provisions of this chapter. (2) Notwithstanding paragraph (e)(1) of this section, a general contractor is responsible for a subcontractors violations of this chapter. Section 2. Amend 3505, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 3505. Penalties. (j) A general contractor is jointly and severally liable for a subcontractors penalties and restitution under this section. Section 3. Amend 3510, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly: 3510. Provisions relating to contracts with public bodies. (c) Subject to the process set forth in this section: (1) An employer found to be in violation of this chapter more than twice in a 2-year period may be subject to debarment. debarment under 3505(h)(1) of this title. (2) The Department shall file with the Office of Management and Budget, the Division of Revenue, the Division of Unemployment Insurance, the Department of Insurance, the Office of Workers Compensation, and the Office of the Attorney General, a list of employers who are subject to debarment. (3) A debarment under this section shall be in effect against applies to any successor corporation or business entity that: to which all of the following apply: a. Has 1 or more of the same principals or officers as the employer against whom the debarment was imposed; and imposed. b. Is engaged in the same or equivalent trade or activity. Section 4. Amend 3607, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 3607. Denial, suspension, or revocation of certificate of registration. (a) The Department may deny, suspend, or revoke a certificate of registration if the contractor or an officer, partner, director, stockholder, or agent of the contractor does any of the following under this chapter: (5) Contracts with or uses a subcontractor who is not registered under this chapter in the completion of a public works contract.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend 3503, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:
3503. Acts Requirements; acts prohibited.
(e) (1) A person must not knowingly conspire with, aid and abet, assist, advise, or facilitate an employer with the intent of violating the provisions of this chapter.
(2) Notwithstanding paragraph (e)(1) of this section, a general contractor is responsible for a subcontractors violations of this chapter.
Section 2. Amend 3505, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
3505. Penalties.
(j) A general contractor is jointly and severally liable for a subcontractors penalties and restitution under this section.
Section 3. Amend 3510, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:
3510. Provisions relating to contracts with public bodies.
(c) Subject to the process set forth in this section:
(1) An employer found to be in violation of this chapter more than twice in a 2-year period may be subject to debarment. debarment under 3505(h)(1) of this title.
(2) The Department shall file with the Office of Management and Budget, the Division of Revenue, the Division of Unemployment Insurance, the Department of Insurance, the Office of Workers Compensation, and the Office of the Attorney General, a list of employers who are subject to debarment.
(3) A debarment under this section shall be in effect against applies to any successor corporation or business entity that: to which all of the following apply:
a. Has 1 or more of the same principals or officers as the employer against whom the debarment was imposed; and imposed.
b. Is engaged in the same or equivalent trade or activity.
Section 4. Amend 3607, Title 19 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
3607. Denial, suspension, or revocation of certificate of registration.
(a) The Department may deny, suspend, or revoke a certificate of registration if the contractor or an officer, partner, director, stockholder, or agent of the contractor does any of the following under this chapter:
(5) Contracts with or uses a subcontractor who is not registered under this chapter in the completion of a public works contract.
SYNOPSIS Chapter 35 of Title 19 prohibits an employer from improperly classifying an individual who is an employee as an independent contractor. Not only is this improper classification unfair to employees because it violates state and federal laws related to income tax withholding, unemployment insurance, wage laws, and workers compensation, it is also unfair to contractors who comply with Chapter 35 and these other employment laws. When employers who violate Chapter 35 are subcontractors who have not registered as contractors as required under Chapter 36 of Title 19, the Department of Labor (Department) has no recourse for enforcing compliance with Chapter 35. This Act makes a general contractor responsible for a subcontractors compliance with Chapter 35 by making the general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. This Act also allows the Department to deny, suspend, or revoke the certificate of registration of a contractor who contracts with a subcontractor who has not registered on any project. In addition, Section 3 of this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. Author: Senator Walsh
SYNOPSIS
Chapter 35 of Title 19 prohibits an employer from improperly classifying an individual who is an employee as an independent contractor. Not only is this improper classification unfair to employees because it violates state and federal laws related to income tax withholding, unemployment insurance, wage laws, and workers compensation, it is also unfair to contractors who comply with Chapter 35 and these other employment laws.
When employers who violate Chapter 35 are subcontractors who have not registered as contractors as required under Chapter 36 of Title 19, the Department of Labor (Department) has no recourse for enforcing compliance with Chapter 35. This Act makes a general contractor responsible for a subcontractors compliance with Chapter 35 by making the general contractor jointly and severally liable for restitution and penalties assessed against the subcontractor. This Act also allows the Department to deny, suspend, or revoke the certificate of registration of a contractor who contracts with a subcontractor who has not registered on any project.
In addition, Section 3 of this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
Author: Senator Walsh