In liability and compensation, providing for registration of status as independent contractor.
Summary
SB 894 would amend Pennsylvania’s Workers’ Compensation Act to create a formal process for registering an individual as an independent contractor with the Department of Labor and Industry. A person who files the registration would need to submit a written waiver signed by the individual and an affidavit stating that the individual understands they are not an employee, are not entitled to workers’ compensation benefits from that person, may buy their own workers’ compensation or disability coverage, and are not eligible for benefits from the Uninsured Employers Guaranty Fund if injured while performing the work.
Once registered, the classification would generally remain valid for future years unless the individual requests revocation. The bill also sets out a revocation process, including notice to the filing party and department confirmation, with revocation becoming effective ten days after receipt. It prohibits employers or other filing parties from using incentives, false statements, or withheld information to pressure an individual into signing the waiver or avoiding revocation, and it applies existing penalties for intentional violations of the Workers’ Compensation Act to such conduct.
Impact
The bill would add a new section to the Workers’ Compensation Act, giving legal effect to a state-filed independent contractor registration and limiting workers’ compensation liability for the filing party when the statutory requirements are met. It would also bar registered independent contractors from claiming benefits from the Uninsured Employers Guaranty Fund for injuries sustained while performing services under the registration. The measure expressly states that it does not alter the Construction Workplace Misclassification Act, so existing anti-misclassification rules would remain in place alongside the new registration option.
Sentiment
No committee transcript or vote record was provided, so there is no documented legislative debate or recorded vote to gauge support or opposition. Based on the bill text, the measure appears designed to provide certainty for businesses and contractors who want a formal independent-contractor designation, while also including consumer-protection style safeguards such as required disclosures, a revocation right, and penalties for coercion or deception.
Contention
The main policy tension is between reducing uncertainty for businesses that use independent contractors and preserving worker protections under the workers’ compensation system. Supporters would likely favor the bill’s clearer liability rules and the ability to document contractor status, while critics may be concerned that the registration process could be used to pressure workers into waiving benefits or to blur the line between employees and contractors. The bill attempts to address that concern by requiring informed consent, allowing revocation, and penalizing deceptive conduct, but the potential for misclassification remains the central point of contention.
Further providing for duty of contractor; providing for registration of contractors and subcontractors, for registration fees, for proof of registration and for duties of contractors, subcontractors and the department; and further providing for remedies and penalties.