Contractor Fined for Misclassifying 192 Workers as Independent Contractors

A Pittsburgh-based construction business will pay a fine of $144,000 for misclassifying 192 workers in violation of Pennsylvania law.

The Pennsylvania Department of Labor & Industry (L&I) announced it has reached a settlement agreement with Romero Remodeling Co. for violating the Pennsylvania Construction Workplace Misclassification Act (Act 72).

Worker misclassification occurs when an employer incorrectly classifies a worker as an independent contractor instead of an employee, depriving the worker of rights and benefits.

“Misclassification of workers undermines a worker’s access to essential benefits like unemployment and workers’ compensation, while also creating an unfair advantage for businesses that sidestep Pennsylvania labor laws,” said L&I Secretary Nancy A. Walker.

L&I’s Bureau of Labor Law Compliance said it investigated Romero Remodeling after receiving a labor law complaint that the firm may have been misclassifying employees. The investigation revealed that the company had misclassified 192 employees as independent contractors. The company will pay an administrative penalty of $750 per misclassified worker.

The Pennsylvania Construction Workplace Misclassification Act, which took effect in 2011, is designed to protect construction employees Under Act 72, employers may face civil penalties of up to $1,000 for first offenses and up to $2,500 for subsequent violations.

According to L&I, it has identified violations of Act 72 by more than 1,250 construction contractors, resulting in cumulative fines exceeding $4 million since the laws’s enactment in 2011. In 2024, the agency investigated 639 cases, issuing fines totaling $1,031,398 and protecting 1,883 workers misclassified by 362 contractors.

Topics Contractors