Pennsylvania Senate Bill SB602

Pennsylvania 2025-2026 Regular Session

• Introduced: 4/9/25
• Refer: 4/9/25

Caption

Providing for the registration of labor brokers; imposing duties on the Department of Labor and Industry and the Secretary of Labor and Industry; establishing the Labor Broker Registration Account; and imposing penalties.

Impact

If enacted, SB602 will impact laws governing how labor brokers operate in Pennsylvania, particularly in the construction sector. It will impose fines for violations such as operating without proper registration, which could serve as a deterrent to unregistered labor brokers. Additionally, the act allows for investigations and penalties for non-compliance, promoting a more secure environment for workers employed through labor brokers. This has the potential to protect workers from exploitation and ensure that they are employed under lawful standards.

Summary

Senate Bill 602, known as the Labor Broker Registration Act, aims to regulate labor brokers in Pennsylvania. This legislation mandates that individuals or entities acting as labor brokers for construction work must register with the Department of Labor and Industry. The act sets forth procedures for registration, verification, and renewal, establishing a clear framework for compliance and accountability among labor brokers. A central feature of the bill is the creation of the Labor Broker Registration Account, which will collect fees and penalties associated with the enforcement of this act.

Sentiment

The sentiment surrounding SB602 appears mixed. Supporters view it as a necessary step toward formalizing and regulating an industry that has been prone to issues such as worker exploitation and fraudulent practices. They argue that the bill will improve transparency and accountability. However, opponents raise concerns about the bureaucratic burden it could place on legitimate entities and worry that it may inadvertently limit employment opportunities for workers by increasing operational costs for brokers.

Contention

Notable points of contention in SB602 center around the penalties established for non-compliance and the specific obligations placed on labor brokers. Critics argue that the penalties could disproportionately affect smaller brokers and potentially lead to job loss. Supporters counter that these measures are vital for ensuring compliance and protecting workers in an industry that has historically lacked oversight. The balance between regulation and facilitating employment in the construction sector is a critical issue that could define public and legislative reaction to the bill.