Image: Logo of BIA Philadelphia

BUILDING INDUSTRY ASSOCIATION of Philadelphia

News & Resources

L&I to Step Up Enforcement of Employee Status Regs

The BIA has become an industry compliance resource for our members with a primary focus on city codes and legislation. L&I’s Audits and Investigations Unit (AIU) recently announced its enforcement priorities for the upcoming year, and we want to make sure members are aware of the requirements governing the employee status of subcontractors.

The enforcement of independent contractor regulations for subcontractors is a planned area of focus for AIU, which explains the requirements as follows:

    “Subcontractors must always be licensed. They must carry a valid contractor or trade license (for trade work) whenever they are working. You are responsible for ensuring that construction for which you are responsible is only performed by licensed entities and their wage employees.”

The PA Office of Unemployment Compensation website states the following:

    “Employee or Independent Contractor. A worker is considered to be an employee unless proven otherwise. To be an independent contractor both of the following must be shown to the satisfaction of the department:
    1. The individual has been and will continue to be free from control or direction over the performance of the services involved, both under the contract of service and in fact, and
    2. As to such services, the individual is customarily engaged in an independently established trade, occupation, profession or business.”

The AIU is reminding you, as a builder, developer, or controlling owner that if your contractors or subcontractors of your contractors are using independent contractors, they must comply with local and state laws or risk contractor license revocation and steep fines.

For your convenience and that of your subcontractors and subs of subcontractors, we have provided a link below to the PA Employer & Tax Services website referencing requirements for insurance, workers’ compensation, and subcontractor agreements.

PA Employer & Tax Services/ Employee or Independent Contractor

Recent News

November 21, 2022
L&I Requires New Documents for Construction Impacting Adjacent Property
October 31, 2022
New Legislation Requires an Excavation License and Excavation Permit for Anyone Digging 5 Feet Below Grade
October 30, 2022
Attention Members: L&I Announces Enforcement Priorities
October 5, 2022
L&I to Step Up Enforcement of Employee Status Regs
September 21, 2022
Deadlines to Appeal Tax Assessments Fast Approaching
September 19, 2022
Updated Philadelphia Regional Housing Report: 2022 Q2
August 31, 2022
What Members Need to Know about L&I’s Audits and Investigations Unit
August 10, 2022
Philadelphia’s Housing Market: Still Strong Volume, but Moderating Prices
August 4, 2022
BIA VP Mo Rushdy Chairs New Fund to Boost Small Builders and Affordable Housing
June 30, 2022
City Council Session Ends with a Few Significant Wins for the BIA
May 10, 2022
Deconstruction vs. Demolition: Learn About Tax Deductions for Deconstruction
April 1, 2022
Philadelphia’s Housing Market Remains Robust
February 26, 2022
The BIA Celebrates Black History Month
February 16, 2022
Financial Incentives for Construction Projects from PECO and PGW
December 6, 2021
Protect Your Business from Cyberattacks
November 30, 2021
The House That She Built: Written by BIA Member Mollie Elkman
November 22, 2021
Building Envelope Best Practices
July 14, 2021
C-PACE Project Financing: A Case Study with Mosaic Development Partners
July 1, 2021
New PWD Process for Scheduling Water Connections
January 28, 2021
Philadelphia’s New Lead Disclosure & Certification Law Now in Effect
December 13, 2020
Why BIA Supported the Abatement Bills AND the 1% Tax on Residential Development
July 27, 2020
Preparing to Dig: Planning and Safety Tips for Construction Excavation in an Urban Environment

<

>