2022 Delaware Code
Title 19 - Labor
Chapter 35. WORKPLACE FRAUD ACT
§ 3501. Definitions.
(a) As used in this chapter:
(1) “Construction services” includes, without limitation, all building or work on buildings, structures, and improvements of all types such as bridges, dams, plants, highways, parkways, streets, tunnels, sewers, mains, power lines, pumping stations, heaving generators, railways, airports, terminals, docks, piers, wharves, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing and landscaping.
(2) “Contractor” means a person, partnership, association, joint stock company, trust, corporation, limited liability company, or other legal business entity or successor or subsidiary thereof that engages in construction services or maintenance under an express or implied contract on behalf of another entity or individual for profit within the State, and includes any subcontractor or lower tier subcontractor of a contractor.
(3) “Debarment” means that no public construction contract in this State shall be bid on, awarded to or received by any employer or any person, firm, partnership or corporation in which such employer has an interest who, within 2 years after entry of a judgment pursuant to this chapter, is adjudicated in violation of this chapter in a subsequent proceeding, until 3 years have elapsed from the date of the subsequent penalty judgment.
(4) “Department” shall have the meaning set forth in § 101(a)(2) of this title.
(5) “Employee” means any person or entity directly hired by, or directly permitted to work by an employer in the State, for work to be performed wholly or partly therein. This chapter does not apply to employees of the United States government, the State or any political subdivision thereof.
(6) “Employer” means any individual, partnership, association, joint stock company, trust, corporation, the administrator or executor of the estate of a deceased individual or the receiver, trustee or successor of any of the same employing any person excepting those provided for in subsection (b) of this section. This chapter does not apply to employees of the United States government, the State or any political subdivision thereof.
(7) “Exempt person” means any individual who:
a. Performs services in a personal capacity and who employs no individuals other than a spouse, child, or immediate family member of the individual;
b. Performs services free from direction and control over the means and manner of providing the services, subject only to the right of the person or entity for whom services are provided to specify the desired result;
c. Furnishes the tools and equipment necessary to provide the services; and
d. Operates a business that is considered inseparable from the individual for purposes of taxes, profits, and liabilities, in which the individual:
1. Owns all of the assets and profits of the business; and
2. Has sole, unlimited, personal liability for all of the debts and liabilities of the business; or alternatively, if the business is organized as a single-person corporate entity, to which sole, unlimited personal liability does not apply, the individual must be the sole member of said single-person corporate entity; and
3. For which the individual does not pay taxes for the business separately but reports business income on the individual's personal income tax return; and
e. Exercises complete control over the management and operations of the business.
(8) “General contractor” and “construction manager” means an entity or individual who has primary responsibility for providing labor and other services necessary for the construction services in a contract. “General contractor” and “construction manager” also means a higher tier contractor of a subcontractor.
(9) “Independent contractor” means an individual or entity who meets all of the following:
a. Performs the work free from the employer's control and direction over the performance of the employee's services.
b. Is customarily engaged in an independently established trade, occupation, profession, or business.
c. Performs work which is either of the following:
1. Outside of the usual course of business of the employer for whom the work is performed.
2. Performed by a registered contractor under Chapter 36 of this title outside of any place of business of the employer for whom the work is performed.
(10) “Knowingly” means having actual knowledge of, or acting with deliberate ignorance, or reckless disregard for the prohibition involved.
(11) “Labor broker” means an entity or individual that hires employees and sells the services of the employees to another employer in need of temporary employees.
(12) “Outside of the usual course of business” means work an individual performs for an employer that is any of the following:
a. At a location that is not the employer's place of business.
b. Not integrated into the employer's operation.
c. Unrelated to the employer's business.
(13) “Place of business” means the principal office or headquarters of the employer, but does not mean a work site at which the employer has been contracted to perform services.
(14) “Public body” means:
a. The State;
b. A unit of state government or an instrumentality of the State; or
c. Any political subdivision, agency, person or entity that is a party to a contract for which the State appropriated any part of the funds to be used for payment.
(15) “Secretary” or “Secretary of Labor” shall have the meaning set forth in § 101(a)(5) of this title.
(16) “Stop work order” means written notice from the Secretary to an employer to cease or hold work until the employer is given notice by the Secretary to resume work.
(17) “Subcontractor” means a lower tier contractor of a contractor, including owner operators or independent contractors.
(18) “Violate” or “attempts to violate” includes, but is not limited to, any intent to evade, misrepresent or wilfully nondisclose.
(b) For the purposes of this chapter the officers of a corporation and any agents having the management thereof who knowingly permit the corporation to violate this chapter shall be deemed to be the employers of the employees of the corporation.77 Del. Laws, c. 192, § 1; 82 Del. Laws, c. 168, § 1; 82 Del. Laws, c. 291, § 1;