Pennsylvania SB 894: An Act amending the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, in liability and compensation, providing for registration of status as independent contractor.

Bill Text

PRINTER'S NO. 1005
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 894
Session of
2025
INTRODUCED BY KEEFER, JUNE 24, 2025
REFERRED TO LABOR AND INDUSTRY, JUNE 24, 2025
AN ACT
Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An
act defining the liability of an employer to pay damages for
injuries received by an employe in the course of employment;
establishing an elective schedule of compensation; providing
procedure for the determination of liability and compensation
thereunder; and prescribing penalties," in liability and
compensation, providing for registration of status as
independent contractor.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of June 2, 1915 (P.L.736, No.338), known
as the Workers' Compensation Act, is amended by adding a section
to read:
Section 304.3. (a) Notwithstanding any other provision of
this act , a person may file a registration with the department
regarding the status of an individual who is classified for
Federal income tax purposes as an independent contractor of the
person.
(b) A registration under this section shall include the
following:
(1) A written waiver by the individual of all benefits under
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this act from the person.
(2) An affidavit by the individual specifying that the
individual understands and agrees that the individual:
(i) is not an employe of the person;
(ii) is not entitled to benefits under this act from the
person;
(iii) may purchase workers' compensation insurance under
this act or other disability insurance at the individual's own
expense; and
(iv) is not entitled to benefits from the Uninsured
Employers Guaranty Fund if the individual is injured while
performing services for the person.
(c) The waiver and affidavit under subsection (b) shall be
made upon forms prescribed by the department.
(d) (1) A person who registers an individual as an
independent contractor under this section:
(i) shall not be liable to the individual for benefits under
this act; and
(ii) shall not be required to provide insurance coverage or
self-insure under this act regarding the individual.
(2) An individual registered as an independent contractor
under this section shall not be eligible for benefits from the
Uninsured Employers Guaranty Fund if the person is injured while
performing services as an independent contractor pursuant to the
registration.
(e) A registration identifying an individual as an
independent contractor shall be valid for each future year,
except that the individual may request that the registration be
revoked at any time. The following apply:
(1) The request for revocation shall be on a form prescribed
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by the department.
(2) The individual shall file the request for revocation
with the department and concurrently provide notice by certified
mail of the filing of the request with the person who filed the
registration.
(3) The department shall confirm receipt of the request for
revocation with the individual and the person within five days
of the receipt of the request .
(4) The revocation shall be effective ten days after the
receipt of the request by the department.
(f) A person shall not do any of the following to persuade
an individual to complete the waiver and affidavit under
subsection (b) or refrain from filing a request for revocation
under subsection (e):
(1) Knowingly provide an incentive to the individual,
pecuniary or otherwise.
(2) Knowingly provide materially false information to the
individual.
(3) Knowingly withhold information from the individual in
order to deceive the individual.
(g) A person violating subsection (f) shall be subject to
the penalties for an intentional violation of section 305.
(h) As used in this section:
(1) "Independent contractor" includes an individual who
performs services for a person for valuable consideration but
who is not classified as an employe of the person for Federal
income tax purposes.
(2) "Person" includes a corporation, partnership, limited
liability company, business trust, other association, government
entity other than the Commonwealth, estate, trust, foundation or
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individual.
Section 2. The addition of section 304.3 of the act shall
not be construed to alter, repeal or supersede any provision of
the act of October 13, 2010 (P.L.506, No.72), known as the
Construction Workplace Misclassification Act.
Section 3. This act shall take effect in 180 days.
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