State Rep. Galloway’s Bills On Unauthorized Workers, Employee Misclassifications Head To House

UPDATED: 11:25 a.m., Wednesday: 

State Rep. John Galloway’s spokesperson issued a correction noting that a previous clause in the Construction Industry Employee Verification Act that would have the state attorney general work with federal authorities if a complaint was filed was removed from the version of the bill heading to the House.

Original Story: 

Democratic State Rep. John Galloway has two bills voted out of committee on Tuesday.

The Falls Township Democrat’s Construction Industry Employee Verification Act and legislation to create a joint agency task force to address the misclassification of employees in the Keystone State will move to the full state House of Representatives. The first bill received 23-1 bipartisan support in the House Labor and Industry Committee and the second one was voted unanimously out of the House Labor and Industry Committee.

The Construction Industry Employee Verification Act would stop employers from hiring workers that are not authorized to work in the state. Employers would be required to verify their work eligibility through the E-Verify program. Employers would be forced to keep a record of the employee verification as long as they worked for the company or for three years.

Galloway’s office released the following additional information on the bill:

Penalties for the offending employer would include a 3-year probationary period for each business location where an unauthorized employee worked. In addition, these employers would have to submit quarterly reports about each new employee hired. Agencies would suspend each license an employer holds if the employer does not submit verification that they have terminated the employment of the unauthorized employee within three days.

“This bill would prevent unscrupulous employers from hiring individuals not authorized to work in the United States,” Galloway said. “These employers are hurting the construction industry by driving down wages, creating an unlevel playing field for other employers, and depriving the government of revenue that would be used to fund programs like unemployment compensation.”

Galloway previously championed E-Verify and it was signed into law by Republican Gov. Tom Corbett in 2012. E-Verify allows companies to compare information provided by employees or job applicants to a national database of Social Security numbers and U.S. Department of Homeland Security records to see if a person is legally permitted to work in the United States.

While E-Verify did face some opposition from lawmakers and groups concerned about those here illegally before it passed, Galloway previously told this news organization that it protects unauthorized immigrants from contractors looking to hire them for less than American workers.

Galloway has championed that Democrats and Republicans have been able to work together on the issue.

Galloway’s other proposal that will move to the full House would create a task force to crackdown on workers being misclassified as contractors, forcing employers to offer a different pay structure and benefits.

The left-leaning Keystone Research Center estimates that Pennsylvania may be losing $10 million in unemployment taxes, at least $15 million in income tax revenues, as much as $83 million in workers’ compensation premiums, and $200 million in federal income taxes due to misclassifications. Employers engage in the practice to decrease labor costs.

“The bill would amend the Administrative Code of 1929 to establish the Joint Agency Talk Force on the Misclassification of Employees. Members of the task force would include Pennsylvania’s attorney general; the secretaries of Community and Economic Development, General Services, Revenue and Budget; and the secretary of Labor and Industry, who would serve as chair,” Galloway’s office said.