SB 35

Abstract

Like Senate Bill No. 35, this Act defines specific violations of wage payment and collection laws under Chapter 11 of Title 19 as wage theft, providing specific penalties for these violations, and creates a new criminal offense of wage theft, with a mechanism for the Department of Labor to refer completed investigations to the Department of Justice for prosecution. Clearly defining wage theft protects Delaware workers and Delaware taxpayers from employers who pay their employees “under the table” because this practice results in lost tax revenue to this State and exposes employees to personal risk in the areas of unemployment compensation and workplace injuries. The civil penalties collected for violations that are wage theft must be used for the enforcement of wage payment and collection laws under Chapter 11 of Title 19 and prosecution of the offense of wage theft under § 841D of Title 11. Senate Substitute No. 1 for Senate Bill No. 35 differs from Senate Bill No. 35 as follows: • Clarifies that Chapter 11 of Title 19 does not apply to independent contractors. • Defines the term "independent contractor" using the same definition that is used in Chapter 35 of Title 19 and specifically identifying as "independent contractors" a person licensed by the Department of Insurance or registered under Chapter 73 of Title 6 as a broker-dealer, agent, investment adviser, or investment adviser representative. It also allows the Department of Labor to designate additional occupations as an “independent contractor” through regulations. • Does not make any changes to the definitions sections of other chapters in Title 19. • Adds terms and definitions to § 1101 of Title 19 that are used in Chapter 11, with the same definitions for the terms as would have applied under the revisions to § 101 of Title 19 in SB 35. Like Senate Bill No. 35, this Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual and requires a greater than majority vote for passage because § 28 of Article IV of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to give criminal jurisdiction to inferior courts.