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Pennsylvania Workers Compensation Laws
Workers compensation policy information for the State of Pennsylvania
- State: Pennsylvania
- Authority/Rating Bureau: A non-NCCI state. The rating authority is somewhat unique in that Pennsylvania shares with Delaware a non-NCCI classification system. The rating bureau is the Pennsylvania Compensation Rating Bureau and can be contacted at:
- Pennsylvania Compensation Rating Bureau
- United Plaza Building - Suite 1500
- 30 South 17th Street
- Philadelphia, PA 19103-4007
- 215-568-2371
- http://www.dcrb.com/
- Compulsory: Yes
- Private Insurance: Allowed
- Self-Insurance: Allowed
- State Fund: A competitive state fund. Operated by the State Workers Insurance Fund (SWIF.) Contact them at:
- State Workers' Insurance Fund
- 100 Lackawanna Avenue
- P.O. Box 5100
- Scranton, PA 18505-5100
- (570) 963-4635
- http://www.dli.state.pa.us/swif
- Assigned Risk: Administered by the State Workers Insurance Fund to contact see state fund above.
- Numerical Exceptions: None, see special notes for additional information.
- Individual Waivers Allowed: No
- Sole Proprietor: Excluded from coverage/may elect to be included
- Partners: Excluded from coverage/may elect to be included
- Corporate Officers: Included in coverage/may elect to be exempt
- LLC Members: Excluded from coverage - Section 301(a) of the Workers’ Compensation Act (Act), 77 P.S. Section 431, only requires employers to maintain workers’ compensation coverage on their employees. Section 104 of the Act, 77 P.S. Section 22, states that the “employee” as used in the Act is synonymous with servant and includes “natural persons who perform services for another for a valuable consideration, exclusive of persons whose employment is casual in character and not in the regular course of the business of the employer…” To the extent that LLCs have no employees, i.e., its only workers are members, it has no employees and no workers’ compensation liability. However, should a member withdraw from the LLC and become an employee or the business adds a part-time or a full-time employee, it would then be required to insure its workers’ compensation liability.
- Contractors: Consideration has been given to questions which have arisen regarding the classification procedure for a subcontractor who performs a single type of work on a contracting project or job. This situation is illustrated by Code 603, Sewer Construction, where portions of the work such as excavation may be subcontracted.
Consistent with the classification treatment which has been generally observed, it has been ruled that such subcontracted work shall be classified on the basis of the classification describing the particular type of work involved. Thus, the subcontractor who only performs excavation work in connection with the construction of a sewer would be classified as Code 609, Excavation, rather than as Code 603, Sewer Construction.
The ruling in connection with concrete construction has been continued. This requires that all operations including making and erecting forms, placing reinforcing steel and stripping forms, when done by subcontractors, shall be assigned to the appropriate concrete construction classification.
These rulings apply only to insured subcontractors. Uninsured subcontractors, covered under the principal contractor’s policy, will continue to be classified on the basis of the classifications which would apply if the work were performed by the principal’s own employees.
- Special Notes: Workers compensation is compulsory as to all employments. Here are the exceptions:
- Individual proprietors
- Partners of a partnership (including members of a Limited Liability Company (LLC).
- Elected officers of the Commonwealth or any of its political subdivisions.
- An executive officer of a for profit corporation or an executive officer of a nonprofit corporation who serves voluntarily and without remuneration may, however, elect not to be an “employee” of the corporation. For the purposes of this exclusion, an executive officer of a for-profit corporation is an individual who has either an ownership interest in a Subchapter S corporation as defined by the Act of March 4, 1971 (P.L. 6, No. 2) known as the “Tax Reform Code of 1971,” or an interest of at least five percent in a Subchapter C corporation as defined by the Tax Reform Code of 1971.
- Any person who is a licensed real estate salesperson or an associate real estate broker affiliated with a licensed real estate broker or a licensed insurance agent affiliated with a licensed insurance agency, under a written agreement, remunerated on a commission only basis and who qualifies as an independent contractor for State tax purposes or for Federal tax purposes under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 Et Seq.).
- Domestic or casual labor.
- Outworker (a person to whom articles are given for cleaning, repair, etc. at home).
- Farmer with one employee who works less than 30 days a year or earns less than $1,200 a year. A spouse or a child of the farmer employer under eighteen years of age shall not be deemed an employee unless the services of such spouse or child are engaged by the farmer employer under an express written contract of hire which is filed with the Pennsylvania Department of Labor and Industry.
- Elective for members of certain religious sects whose tenets prohibit benefits from insurance, provided the sect makes provisions for its members.
- Regulated By:
- Pennsylvania Department of Labor and Industry
- Room 1700
- 7th and Forster Streets
- Harrisburg, PA 17120
- (717) 787-5279
- http://www.dli.state.pa.us/landi/cwp/view.asp?a=198&Q=67280
- Workers Compensation Statute:
- http://www.dli.state.pa.us/landi/cwp/view.asp?A=185&Q=207098
- Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.
- Authority/Rating Bureau: A non-NCCI state. The rating authority is somewhat unique in that Pennsylvania shares with Delaware a non-NCCI classification system. The rating bureau is the Pennsylvania Compensation Rating Bureau and can be contacted at:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 999-6948
Fax: (573) 447-4998
email: rks@workcompconsultant.com
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