AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO LABOR.

Contractors face tougher labor law enforcement

The law bans knowingly helping an employer break Delaware’s employee misclassification rules with the intent to violate those rules. General contractors are responsible for subcontractors’ violations. They can also be held responsible for the full amount of a subcontractor’s penalties and restitution payments. Employers with more than two violations within two years can be barred from public contracts. That ban also covers successor businesses that share at least one principal or officer and do the same or equivalent work. The Department must send the list of barred employers to six state offices: Management and Budget, Revenue, Unemployment Insurance, Insurance, Workers’ Compensation, and the Attorney General. Using an unregistered subcontractor to complete a public works contract is grounds to deny, suspend, or revoke registration. This rule covers contractors and their officers, partners, directors, stockholders, or agents.