AN ACT

 

1Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
2reenacted and amended, "An act defining the liability of an
3employer to pay damages for injuries received by an employe
4in the course of employment; establishing an elective
5schedule of compensation; providing procedure for the
6determination of liability and compensation thereunder; and
7prescribing penalties," further providing for the definition
8of "employe."

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. Section 104 of the act of June 2, 1915 (P.L.736,
12No.338), known as the Workers' Compensation Act, reenacted and
13amended June 21, 1939 (P.L.520, No.281) and amended June 24,
141996 (P.L.350, No.57), is amended to read:

15Section 104. The term "employe," as used in this act is
16declared to be synonymous with servant, and includes--

17All [natural] persons who perform services for another for a
18valuable consideration, exclusive of persons whose employment is
19casual in character and not in the regular course of the
20business of the employer, and exclusive of persons to whom

1articles or materials are given out to be made up, cleaned,
2washed, altered, ornamented, finished or repaired, or adapted
3for sale in the worker's own home, or on other premises, not
4under the control or management of the employer. The term shall 
5not include an alien or noncitizen who has entered the United 
6States without government permission or stayed beyond the 
7termination date of a visa. Except as hereinafter provided in
8clause (c) of section 302 and sections 305 and 321, every
9executive officer of a corporation elected or appointed in
10accordance with the charter and by-laws of the corporation,
11except elected officers of the Commonwealth or any of its
12political subdivisions, shall be an employe of the corporation.
13An executive officer of a for-profit corporation or an executive
14officer of a nonprofit corporation who serves voluntarily and
15without remuneration may, however, elect not to be an employe of
16the corporation for the purposes of this act. For purposes of
17this section, an executive officer of a for-profit corporation
18is an individual who has an ownership interest in the
19corporation, in the case of a Subchapter S corporation as
20defined by the act of March 4, 1971 (P.L.6, No.2), known as the
21"Tax Reform Code of 1971," or an ownership interest in the
22corporation of at least five per centum, in the case of a
23Subchapter C corporation as defined by the Tax Reform Code of
241971.

25Section 2. This act shall take effect in 60 days.