Delaware- SB 95 (Independent Contractors)
Issue: Employee Classification and Contractor Registration
Affects: Those who build pools/spas
Send comments to: Regan Ratliff, firstname.lastname@example.org
Summary: This bill seeks to regulate employee misclassification by revising the Workplace Fraud Act and creating the Delaware Contractor Registration Act.
A ‘contractor’ is defined as a person, partnership, association, joint stock company, trust, corporation, limited liability company, or other legal business entity or successor or subsidiary thereof that engages in construction services or maintenance within the State, and includes any subcontractor or lower tier subcontractor of a contractor.
A ‘general contractor’ and ‘construction manager’ are defined as an entity or individual who has primary responsibility for providing labor and other services necessary for the construction services in a contract. “General contractor” and “construction manager” also means a higher tier contractor of a subcontractor.
A ‘subcontractor’ is defined as a lower tier contractor of a contractor, including owner operators or independent contractors.
The Delaware Contractor Registration Act creates a contractor registration system to effectively regulate employee misclassification by doing all of the following:
1. Requires contractors to pay a small annual fee and apply for a certificate of registration to engage in construction activities in this State.
2. Requires registered contractors to establish compliance with State labor and revenue laws.
3. Requires that all contractors who work on a public works contract comply with the new contractor registration requirement.
PHTA members are encouraged to send comments or question in regard to the proposed changes and language in this bill.
Status: This bill has been scheduled for a hearing May 15, 2019.