Delaware Strengthens Law Against Worker Misclassification

Delaware is making general construction contractors liable for any worker misclassification penalties committed by subcontractors, under a bill effective Jan. 28.

SB 63 amends the state’s Workplace Fraud Act, which prohibits misclassifiying employees as independent contractors. General contractors and their subcontractors that misclassified employees are jointly liable for penalties and restitution, but only subcontractors could face debarment under the bill. Debarment prevents employers from bidding on or being awarded public contracts for a two-year period, under the law.

However, general contractors may have their certificate of registration revoked, suspended, or revoked if they contract with an unregistered subcontractor, under the ...