PRINTER'S NO. 677 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL No.678 Session of 2025 INTRODUCED BY SAVAL, TARTAGLIONE, STREET, HUGHES, SCHWANK, FONTANA, COMITTA, COLLETT, KANE, KEARNEY, COSTA, HAYWOOD, MUTH, L. WILLIAMS, CAPPELLETTI, SANTARSIERO, PISCIOTTANO, FLYNN, KIM, BOSCOLA, MILLER AND A. WILLIAMS, APRIL 28, 2025 REFERRED TO LABOR AND INDUSTRY, APRIL 28, 2025 AN ACT Amending the act of July 14, 1961 (P.L.637, No.329), entitled "An act relating to the payment of wages or compensation for labor or services; providing for regular pay days; conferring powers and duties upon the Department of Labor and Industry, including powers and duties with respect to the civil collection of wages; providing civil and criminal penalties for violations of the act; providing for their collection and disposition and providing for additional civil damages," further providing for definitions; and providing for specific liability. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 2.1 of the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law, is amended by adding definitions to read: Section 2.1. Definitions.--The following words and phrases when used in this act shall have, unless the context clearly indicates otherwise, the meanings given to them in this section: * * * "Construction contract." An agreement, whether written or oral, to perform work on real property in this Commonwealth. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 "Construction services." The term includes any of the following services provided in connection with the improvement of real property located in this Commonwealth: (1) Construction. (2) Reconstruction. (3) Improvements. (4) Additions. (5) Painting. (6) Alterations. (7) Maintenance. (8) Repairs. * * * "General contractor." A person who is authorized or engaged by an owner under a construction contract to improve real property. * * * "Subcontractor." A person who has entered into a construction contract to furnish labor or materials to or has performed labor for a general contractor or another subcontractor in connection with the provision of construction services. * * * Section 2. The act is amended by adding a section to read: Section 9.2. Specific Liability.--(a) In an action under section 9.1 of this act, a general contractor is jointly and severally liable for a violation of this act that is committed by a subcontractor who provides labor or materials for construction services for the real property that is the subject of the construction contract, regardless of whether the subcontractor is in direct contractual relationship with the 20250SB0678PN0677 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 general contractor. (b) A subcontractor shall indemnify the general contractor for wages, damages, interest and attorney fees paid by the general contractor pursuant to subsection (a) as a result of the subcontractor's violation of this act, except as provided in subsection (c). (c) A subcontractor shall not be required to indemnify the general contractor pursuant to subsection (b) if either of the following conditions apply: (1) indemnification is provided for in the construction contract between the general contractor and the subcontractor; or (2) a violation of this act arose due to a lack of prompt payment in accordance with the terms of the construction contract between the general contractor and the subcontractor. Section 3. This act shall apply to construction contracts entered into on or after the effective date of this section. Section 4. This act shall take effect in 60 days. 20250SB0678PN0677 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18