Recent amendments to Delaware's Workplace Fraud Act (WFA)
broaden the scope of penalties general contractors in construction
may incur in connection with worker misclassification. The
amendments, which Delaware Governor Matthew Meyer initially vetoed
in August 2025, were the subject of a veto override vote by the
General Assembly in late January 2026. Under the newly amended
statute, general contractors are liable not only for their own
misclassification of workers, but also for any misclassification by
their subcontractors.
The WFA
The WFA prohibits employers in the construction services
industry from misclassifying workers as independent contractors
when in fact an employer-employee relationship exists. The
overarching purpose of this prohibition is to prevent employers
from avoiding obligations associated with employees, such as income
tax withholding, unemployment insurance, compliance with wage laws
and workers' compensation.
