Pennsylvania Labor Department Cracks Down on Labor Law Violations, Recoups $4M in Lost Wages

Pennsylvania Department of Labor and Industry

HARRISBURG, PA — The Pennsylvania Department of Labor & Industry (L&I) is ramping up its protection of workers’ rights as it witnessed a significant uptick in labor law violation complaints in 2023. The department investigated over 5,200 alleged violations last year, marking a 27% increase from the approximately 4,100 cases in 2022.

These investigations led to the return of more than $4 million in earned wages to Pennsylvania workers. Notably, employers found violating the Child Labor Act and the Construction Workplace Misclassification Act were fined nearly $1.2 million, which was returned to taxpayers through the General Fund and the Unemployment Compensation Trust Fund.

“Pennsylvania’s workers deserve to keep every cent they rightfully earn,” said L&I Secretary Nancy A. Walker. “Our Bureau of Labor Law Compliance (BLLC) works tirelessly to protect workers from employer exploitation and safeguards law-abiding employers from unfair competition that undermines labor standards.”

In response to the surge in labor law cases, Governor Shapiro’s proposed 2024-2025 budget includes an additional $1.19 million for labor law compliance investigators. This increased funding aims to further protect Pennsylvania’s workers and businesses and continue rigorous enforcement of labor laws.

The BLLC’s enforcement efforts in 2023 saw significant increases in cases related to prevailing wage, child labor, wage payment and collection, and minimum wage laws. Meanwhile, cases involving the misclassification of construction employees and mandatory overtime for nurses saw slight declines, despite an increase in the number of misclassified workers.

The Prevailing Wage Act, a crucial legislation aimed at guaranteeing fair wages and benefits for workers engaged in publicly funded projects, has experienced a remarkable surge. Recent data shows a staggering 209% increase in the number of cases related to the implementation and enforcement of this act.

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On the other hand, it is concerning to observe that the number of reported cases related to the Child Labor Act, a crucial legislation aimed at safeguarding the rights and well-being of minors in the workplace, has experienced a notable surge of 43%.

Similarly, there has been a notable rise of 26% in the cases filed under the Wage Payment and Collection Law, which emphasizes the importance of timely payment of wages and benefits to employees.

The Better Labor and Legal Council (BLLC) conducted a comprehensive investigation, revealing a significant 31% increase in cases related to the Minimum Wage Act in 2023. It is worth noting that this surge in cases coincided with a greater number of contractors found misclassifying construction workers, although there was a slight decline of 6.7% in such cases. Despite this decline, the magnitude of misclassifications remained higher compared to the previous year, highlighting the ongoing challenges within the construction industry.

Pennsylvanians who suspect violations of labor laws can file a complaint with L&I’s Bureau of Labor Law Compliance using an online submission form on L&I’s website. The BLLC is committed to responding promptly and thoroughly to all complaints to protect Pennsylvania’s workers and ensure fair labor practices across the state. Anyone can file a complaint, whether they are a worker, employer, or concerned citizen.

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