Maryland’s wage payment laws only apply to employees, not to independent contractors. The Legislature clearly intended the scope of the WPCL to be far broader. Under the Fair Labor Standards Act (FLSA), an employment relationship must be distinguished from a strictly contractual one. Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. Pennsylvania Independent Contractors Resources. 43 P.S. State Common Law Claims May Be Preempted By The Fair Labor Standards Act . 100 Winners Circle, Suite 300, Brentwood, TN 37027 800-727-5257. In Pennsylvania, workers have protections and a method to enforce the payment of their paychecks under the Pennsylvania Wage Payment and Collection Law. Many employers in the Pennsylvania building trades will attempt to classify employees as “independent contractors” to avoid paying taxes on their wages as well as other potential liabilities such as workers compensation. 0 The title given an individual by the alleged employer is not conclusive as to whether the person is an employe or an independent contractor. Consequently, honest employers have a difficult time competing against those who fail to follow the law. Some employers misclassify workers as independent contractors when they really are employees, in order to save on taxes, avoid paying minimum wage or overtime, or shirk other responsibilities. h�b```�$.5``��0pl r The answer can be found in the Pennsylvania Wage Payment and Collection Law. There are many factors to consider in making the distinction between an employee and an independent contractor, but the most determinative factor is control. How employers classify the people who work for them can have important implications for everything from taxes to wage and hour issues. However, “independent contractor” has a specific definition under Pennsylvania and New Jersey law. Labor and Employment Law. h�bbd``b`�$[AD �`��) �D��A�Ga"�@�s�e �$.F2012n��N�g�� � �& ܥ�3y300.c>�Z�о8'SeR�B���� The Wage Payment and Collection Law is not just a collection of mandates from on high. While the law does not create a substantive right to be compensated, it does establish a mechanism by which you can enforce the payment of compensation … h��X[o�6�O�c,�E��(�9Y�h� ��A4GM��r`+H��wEҔ|I�a���υ�����9'��\��� W���"�V),��Hi�5Dj �%Jhb Pennsylvania … The Wage Payment and Collection Law, 43 Pa C. S. §260.1 (WPCL), is a Pennsylvania employment law that provides a means by which employees are able to recover unpaid wages from their employers. 80�M�``���y��d>�2cJ ���"d������80p�O�� v�$c��f�rd ���"��c`��2 (�` ��$� If You Have Been Misclassified as a Self-Employed Independent Contractor, You May Recover Compensation Under Pennsylvania's Wage Payment and Collection Law I frequently am contacted by workers who had signed independent contractor agreements, and are paid as if they are self-employed, but in fact do the same job as co-workers who are paid on a w-2 basis. Many of these concern “typical” deductions such as taxes, contributions to pension plans and donations to charitable organizations. "�8����1A��R�p�7�O �tO�p+a?�-^B�n�n7����r����ж�{�m��Ѹt� ��[��>��u��� ^�������_o�0o����ߌ��$`�vbm�s � � p����-x��JB�(�#�HñA �M4�n�Sp�X�E��&�ȅ˨k%�ׯ_ӑs�z4��1�]>�W�h����#a���ኁ��o�)��&��&��(�t��h�I�R�d���ä=/U�N���]�|��5ͼ=���`��pZ�f��se2ˋ|�F�=�+zz||T.����7d����ɧr�������bVN������^���7~D`����0m�n�7_���m�VtR:��}��m�r� M����U}{�����תS@��dZ�.I.�ɼi���_��>QGc��vړrVO�^\ֳjI�W��b>+��N���AV����h>�q:غ��܅E���.�=m�i=5�ӊ0��j����o���_�Tƭ7M�3��p�K����o��~��Q����I�X��w�����n3�л�[��q_�9��bv���[^c��)Br�9Q In general, an employee works for a company directly and must follow the employer's instructions when it comes to the performance and timing of work tasks. It is not actual interference or exercise of control by the employer but the existence of the right or authority to interfere or control that makes an individual an employee rather than an independent contractor (. If you have been misclassified as an independent contractor, you may be owed significant back wages. Next, on May 29, Judge Burke issued an opinion and order holding that the defendant employer violated the Pennsylvania Wage Payment and Collection Law (WPCL) when it paid the plaintiff class members with payroll debit cards. Massachusetts filed a lawsuit in July 2020 against Uber and Lyft, seeking a court ruling that these drivers are employees under the state’s wage and hour laws. %PDF-1.5 %���� %%EOF H�|Tmo�0��_q�&{ZLl'N��J���UK+�*����۠����%NB;��l���y�Ik�����u}~������{�Y�·L��렕�h�����cܲ�m���4J�6������eh/�����_d�3�TŐO!,�HTҎ1Z>��gv"��m]��{~f�*R&Ί����a�Hw+�����2ԑ������u8�a&F=�aԗa*�\\u In one such case, the Pennsylvania Superior Court recently ruled that an employer violated the Pennsylvania Wage Payment and Collection Law (WPCL) by requiring employees to accept their wages on a payroll debit card, rather than in cash or by check. Independent Contractor Laws May Vary . However, it is the reality of the working relationship—and not a job title or label given by your employer—that determines whether you are an employee or an independent contractor. 9���b1 _�[$�C�(0��N�t����U@ӆ[� m��~�_�[��[� �C��� �>���[��x ����!l��Z� {諺�=��v����k��!�x^>t��x,�Ű)A^��az��2�)%V����㯹�� Pennsylvania’s wage and hour laws apply to all individuals who are employees of an employer. Pennsylvania employers must pay all covered employees at least $7.25 per hour. The characteristic of the independent contractor relationship is that the person engaged in the work has exclusive control of how to perform it, being responsible only for the result. In Pennsylvania, federal and state laws govern pay day laws including wage and hour requirements. 0@�3@�a�[���$�1l%0^��9��kC_��$s[8[죮�����`�J�^��4h�,JYsI*�g�t�h��\R~���Wb5� ʵ�(�8��� [���v�WHvM+c[�Z��{�a���8�V�*���kaL���?ea���t��`{���[#�!�b��.���+h>+��\���6�?�A���Vd%�)/ L-���6r`_Б��]R��ob+=4�D.���"d��!�����z������v��k? The underlying purpose of the WPCL is to remove some of the … Unless otherwise stipulated in a contract of hiring, an employer must pay employees not paid by an annual salary at least semi-monthly. endstream endobj 299 0 obj <>stream §260.1 et seq. The IRS has its take, and there are tons of court opinions weighing in on wage and hour issues. When an employee is hired or separates from employment, one statute both the employee and employer must consider is the Pennsylvania Wage Payment and Collection Law (“WPCL”) 43 P.S. New Jersey and Philadelphia Independent Contractor Lawyer. The PMWA and WPCL are enforced by the Pennsylvania Department of Labor and Industry or through private lawsuits. If the employer fails to pay the claim or explain to the secretary why it has failed to do so within ten days after the employer receives a certified notice from the secretary, … The amount of those For instance, an employee or labor organization can bring a claim against the employer under the law, or can refer its claim to the Pennsylvania Secretary of Labor. Pennsylvania independent contractor law defines who is considered an employee and who works on a freelance basis. �O{`�{u{��{��]�v-ۍ���D�}W�p%[a'� ��c-���X�#n�2�P�%����/�lr���:��n�. Independent contractors are not … This law, effective as of June 26, 2000, prohibits debt collectors and creditors from engaging in certain unfair or deceptive acts or practices while attempting to collect debts. MINIMUM WAGE . In complying with the minimum wage requirement for hourly employees, employers may credit any commissions earned by the employee. endstream endobj 296 0 obj <>/Metadata 28 0 R/PageLayout/OneColumn/Pages 293 0 R/StructTreeRoot 43 0 R/Type/Catalog>> endobj 297 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 298 0 obj <>stream (a) Every contract to which the Commonwealth, its political subdivisions, an authority created by the General Assembly of the Commonwealth including authorities created under the Municipality Authorities Act of 1945 (53 P. S. §§ 301 - 401) and instrumentalities or agencies of the Commonwealth is a party, for construction, reconstruction, demolition, alteration or repair work other than maintenance work where the estimated cost of the total project is in excess of $25,000, which requires or involves the employment b… It regulates how much workers must be paid, how many hours they can be required … §260.1 et seq. The Pennsylvania Supreme Court has ruled that an Uber driver should be considered an employee. The Pennsylvania Contractor and Subcontractor Payment Act, known as CAPSA or simply the Payment Act, was passed into law in 1994. Pennsylvania Wage Payment and Collection Law Hiring and firing employees requires consideration of multiple legal issues. Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. July 17, 2018 by Tom H. Luetkemeyer. 310 0 obj <>/Filter/FlateDecode/ID[<26C8A94886BCD44E8EFB280D4478D5C6><4CE80D1203489947BB0EC27B723B8DB9>]/Index[295 35]/Info 294 0 R/Length 78/Prev 98803/Root 296 0 R/Size 330/Type/XRef/W[1 2 1]>>stream The major federal law governing wages and hours is called the Fair Labor Standards Act (FLSA). 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