Del. Code tit. 19 § 3503

Current through 2024 Legislative Session Act Chapter 254
Section 3503 - Acts prohibited
(a) An employer must not act as a labor broker by improperly classifying an individual who performs work for remuneration provided by an employer as an independent contractor.
(b) An employer has improperly classified an individual when an employer-employee relationship exists, as determined under subsection (c) of this section, but the employer has not classified the individual as an employee.
(c)
(1) An "employer-employee" relationship is presumed to exist when work is performed by an individual for remuneration paid by an employer, unless the employer demonstrates, to the satisfaction of the Department, that the individual is an exempt person or independent contractor.
(2) By contract, a general contractor or subcontractor may engage an independent contractor registered under Chapter 36 of this title, to do the same type of work in which the general contractor or subcontractor engages, at the same location where the general contractor or subcontractor is working, without establishing an employer-employee relationship between the multiple contracting parties.
(3) There is a rebuttable presumption that an entity or individual who acts as a labor broker in providing construction services has engaged in a knowing violation of this chapter.
(d) A person must not knowingly incorporate or form, or assist in the incorporation or formation of, a corporation, partnership, limited liability corporation, or other entity, or pay or collect a fee for use of a foreign or domestic corporation, partnership, limited liability corporation, or other entity for the purpose of facilitating, or evading detection of, a violation under this section.
(e) A person must not knowingly conspire with, aid and abet, assist, advise, or facilitate an employer with the intent of violating the provisions of this chapter.
(f) The Department shall adopt regulations to further explain and provide specific examples of subsections (c), (d), and (e) of this section.

19 Del. C. § 3503

Amended by Laws 2019, ch. 168,s 2, eff. 10/1/2020.
77 Del. Laws, c. 192, § 1.;