2020 Delaware Code
Title 19 - Labor
Chapter 35. Workplace Fraud Act
§ 3505 Penalties [Effective until fulfillment of 82 Del. Laws, c. 168, § 6, as amended by 82 Del. Laws, c. 291, § 2].
(a) Any employer who violates or fails to comply with § 3503 of this title or any regulation published thereunder shall be deemed in violation of § 3503 of this title, and shall be subject to a civil penalty of not less than $1,000, and not more than $5,000, for each such violation. Each employee who is not properly classified in violation of § 3503 of this title shall be considered a separate violation for purposes of this section.
(b) An employer that fails to produce to the Department the books and records requested pursuant to § 3504(c) of this title within 30 days of the employer's receipt of a written request sent to the employer via federal express or certified mail from the Department, in the course of an investigation to determine whether the employer is in compliance with the provisions of this chapter, may be subject to a stop work order, and may be subject to an administrative penalty, not to exceed $500 per day, for each day that the requested records are not produced after the date on which the employer receives the written request from the Department.
(c) An employer who discharges or in any manner discriminates against a person because that person has made a complaint or has given information to the Department pursuant to the provisions of this chapter, or because the person has caused to be instituted or is about to cause to be instituted any proceedings under this chapter, or has testified or is about to testify in any such proceedings, shall be subject to a civil penalty of not less than $5,000, and not more than $10,000, for each such violation.
(d) A person who knowingly incorporates or forms, or assists 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 of this chapter, shall be subject to a civil penalty not to exceed $20,000.
(e) A person who knowingly conspires with, aids and abets, assists, advises, or facilitates an employer with the intent of violating this chapter shall be subject to a civil penalty not to exceed $20,000.
(f) In addition to the penalties and procedures enumerated in subsections (a) through (e) of this section, an employer may be subject to a stop-work order, and may be ordered to make restitution, pay any interest due and otherwise comply with all applicable laws and regulations by multiple final determinations of the Department or orders of a courts, including but not limited to, the Division of Unemployment Insurance, the Department of Insurance, the Office of Workers' Compensation, the Division of Revenue, the Office of the Attorney General, or any other agency, department or division of the State.
(g) Notwithstanding subsections (a) through (e) of this section, an employer found by any court or the Department to be in violation of this chapter shall be required, within 30 days of the final order:
(1) To pay restitution to or on behalf of any individual not properly classified; and
(2) To otherwise come into compliance with all applicable labor laws, including those related to income tax withholding, unemployment insurance, wage laws, and workers' compensation.
(h) Notwithstanding subsections (a) through (e) of this section, an employer who has been found by a final order of a court or the Department to have violated this chapter twice in a 2-year period:
(1) Shall be assessed an administrative penalty of $20,000 for each employee that was not properly classified, and may be debarred for 5 years; and
(2) Notwithstanding paragraph (h)(1) of this section, an employer that is fined or debarred in accordance with this section may be ordered to make restitution, pay any interest due, and otherwise comply with all applicable laws and regulations by orders of a court and all relevant departments, agencies and divisions, including the Division of Unemployment Insurance, the Department of Insurance, the Office of Workers' Compensation, the Division of Revenue, and the Office of the Attorney General.
(i) Any penalty issued under this section against an employer shall be in effect against any successor corporation or business entity that:
(1) Has 1 or more of the same principals or officers as the employer against whom the penalty was assessed; and
(2) Is engaged in the same or equivalent trade or activity, with the intent to violate 1 or more of the provisions of this chapter.
