Legislative amendments streamline Power Act and redefine employee protections against retaliation

The Philadelphia City Council's Committee on Law Government convened on April 25, 2025, to discuss significant amendments to the Power Act, focusing on the burden of proof and protections for workers. The meeting addressed various changes aimed at refining the legal framework surrounding employee rights and employer responsibilities.

One of the primary amendments discussed was the shift of the burden of proof onto workers, requiring them to demonstrate that they did not receive the necessary notice of rights before any extension of the statute of limitations. This statute aligns with those used by the federal government and in cities like Chicago, Los Angeles, and Seattle.

The committee clarified that an employer would only be liable for retaliation if an employee's protected activity was a factor in any adverse action taken against them. This change removes the previous requirement that such actions must be for just cause. Additionally, the amendments stipulate that the identity of a complainant may need to be disclosed to allow employers a fair chance to respond to allegations.

Further adjustments included narrowing the definition of protected activity, requiring workers to show that employers were aware of their actions before receiving protection against retaliation. The amendments also specified that complaints must be made to individuals affiliated with the company for them to qualify as protected activities.

The committee introduced a "bad actors database," which would list companies with three or more labor violations. This database aims to protect the reputations of franchisors and locations without violations by requiring the employer's location to be listed. Moreover, employers could be removed from this database following meaningful changes in ownership.

Enforcement provisions were also discussed, allowing the administration to extend timelines for employers to submit records related to complaints. The committee emphasized that all changes to record-keeping and statute of limitations would be implemented moving forward, providing employers with adequate time to adjust to the new provisions.

Additionally, the meeting addressed amendments related to the Domestic Workers Bill of Rights, including a small employer carve-out for notice related to presumed damages. The committee mandated that written notice and a 30-day cure period be provided for damages and penalties concerning written contract notifications.

In conclusion, the committee's discussions on the Power Act amendments reflect a significant shift in the legal landscape for workers' rights in Philadelphia, with implications for both employees and employers. The next steps involve further refinement of these amendments before they are enacted into law.