Can Independent Contractors Get Workers’ Compensation in Pennsylvania?

In many areas of labor, there are questions about how a worker’s classification as an employee or an independent contractor affects their job, their pay, their taxes, and even their access to insurance.  Workers’ Compensation is another area where being an independent contractor will greatly affect your access to coverage.

Under the Pennsylvania Workers’ Compensation Act, only “employes” (with one “e”) are covered.  This term only applies to traditional employees and does not include independent contractors.  However, it is a bit more complicated than merely looking at whether you get paid with a 1099 or a W-2, and there are some factors to assess as to whether your employer has you properly classified as a contractor or not.

Employees can call our Certified Pennsylvania Workers’ Compensation Lawyers at Cardamone Law at (267) 651-7945 for a free review of their potential case.

Does Workers’ Comp Cover Independent Contractors in Pennsylvania?

Generally speaking, Workers’ Compensation only covers what the Act calls “employes” with one “e.”  This term is a 1:1 matchup with “employee” and only covers workers who are employed by an employer, receive regular pay for their individual work, and listen to instructions from their employers.

Workers’ Compensation does not cover independent contractors in Pennsylvania, and many workers might find themselves without coverage because of this.  However, it is important to talk to our Pennsylvania Workers’ Compensation lawyers about your potential coverage, as many employers have their workers classified wrong in an attempt to shirk responsibility for various types of benefits they need to give their employees.

What’s the Difference Between an Independent Contractor and an Employee?

Under the Pennsylvania Workers’ Comp Act, the term “employe” (equivalent to “employee”) is defined as a “servant.”  Under this rule, a few specific things are included and excluded.  In general, there are a few different factors as to how to properly classify a worker as an independent contractor or an employee:

Workers’ Comp Act’s Definition of Employee

The Act specifically includes all “natural persons” (as opposed to companies or entities) who get paid to work for someone else.  There are a few specific exclusions, such as people covered under a separate act (mostly sailors and longshoremen).

Casual workers are also excluded, such as someone hired to repair something.  Additionally, executives of a company do count as employees, but some can opt out of coverage.

Workers’ Comp Act’s Definition of Contractor

The Act does also include the term “contractor” and specifically says that they will not be covered.  This term discusses contractors who perform “independent business” and can work for people other than the employer.

General Differences

Neither of these terms is particularly detailed in what it includes and excludes, so it is better to look at some features of an employee versus some features of an independent contractor:

Employees usually have the time, place, and manner of their work controlled by their employer.  When it comes time for taxes, they usually receive a W-2, and they have their taxes withheld by their employer.  Usually, employees work under their legal name and get paid as an individual for the time they work or with a salary.  While employed, they can usually only work for that employer during their work hours.  These workers also usually perform the kind of business that their employer performs and can be hired or fired “at will” as opposed to having a contract in place to determine the end of their employment.

Independent contractors – as the name implies – work under contract for various people and perform their jobs independent of the client.  Instead of having the time, place, and manner of their work controlled, they are simply given instructions/requests from the client and are left to do the work as they want to, when they want to, in the way they want to.  At the end, they deliver the product/service according to the terms of the contract.  Clients usually pay them per job rather than hourly.  Clients also give them a 1099 and do not withhold their taxes.  Often, independent contractors do business under a company or LLC name rather than their individual name, but this is not a requirement to be an independent contractor.  Additionally, they can potentially do jobs for multiple clients at once, in batches, or intermingled with other work.  Contractors often do work outside the scope of the client’s usual work – such as by providing legal services, catering, building repairs, or web design services.  Lastly, their contract usually limits when they can be fired and for what reasons.

Subcontractors/Assistants

Subcontractors – contractors who work for other contractors – are often confusing to classify.  Some people who might think they are “subcontractors” are actually employees of a general contractor or subcontractor.

There are also some confusing situations mentioned in the Act where an employer or contractor might be liable to an employee’s assistant or the employees of a subcontractor if the middleman did not have Workers’ Comp insurance, potentially changing who you file against for your injury.

Determining Worker Classification for Workers’ Compensation Purposes in Pennsylvania

If you are an independent contractor, then your “employer” usually will not cover your injuries, and you would have to sue them or another at-fault party in court.  If you are an employee, then you should be covered.  This gives businesses an incentive to call you an independent contractor so they do not have to cover you, but this could be considered “misclassification” if they still treat you as an employee.  This often brings employers problems when it comes to Workers’ Compensation, taxes, and other areas of business.

If you were hurt and believe that you should be covered under your employer’s Workers’ Comp as an employee, we can help you file your claim.  If it is denied under the pretext that you are an independent contractor, but you are not properly classified, we can work to get your injuries covered.

When determining whether you are properly classified or not, we will look into how your employer pays you, what kinds of restrictions they put on your work, whether you do the kind of work the company does, and whether they have control over the time, place, and manner of your work.  Employers cannot have it both ways and control you like an employee but then turn around and deny you coverage for injuries sustained in the course of your work for them.

Call Our Workers’ Comp Lawyers for Help in Pennsylvania

For a free case evaluation, call (267) 651-7945 to speak with the Bucks County Workers’ Compensation lawyers at Cardamone Law.