Under the Pennsylvania Workers’ Compensation Act (“Act”), employers are required to maintain workers’ compensation insurance coverage. Generally, the employer’s obligation extends only to maintaining coverage for its employees, as that term is defined by law. Independent contractors are not eligible for workers’ compensation benefits under the Act.
However, Section 302(a) of the Act provides that an entity may be deemed a “statutory employer” as to independent contractors of a subcontractor who fails to maintain workers’ compensation insurance. Specifically, an entity that subcontracts with another entity to perform work regularly a part of the entity’s business is secondarily liable for that payment of workers’ compensation benefits to the subcontractor’s employees. Earlier this year, the Pennsylvania Supreme Court issued an opinion expanding the scope of statutory employer liability under the Act.
Continue Reading State Supreme Court Extends Workers’ Compensation Liability to Subcontractor’s Employees