Regular Session 2017-2018 House Bill 1781 P.N. 4130

PRIOR PRINTER'S NO. 2408

PRINTER'S NO. 4130

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1781

Session of

2017

INTRODUCED BY F. KELLER, COX, GROVE, McGINNIS AND MILNE,

SEPTEMBER 12, 2017

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF

REPRESENTATIVES, AS AMENDED, OCTOBER 1, 2018

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

law 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:

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(1) A written waiver by the individual of all benefits under

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; and

(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.

made upon forms prescribed by the department.

(d) THE FOLLOWING SHALL APPLY:

(1) A person who registers an individual as an independent

contractor under this section:

(1) (I) shall not be liable to the individual for benefits

under this act; and

(2) (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 regarding IDENTIFYING an individual as an

independent contractor shall be valid for each future year,

except that the individual may request that the registration be

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revoked at any time. The following apply:

(1) The request for revocation shall be on a form prescribed

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 may not offer or provide an incentive,

pecuniary or otherwise, for an individual to:

(1) complete the waiver and affidavit under subsection (b);

(2) refrain from filing a request for revocation under

subsection (e).

(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 under FOR AN INTENTIONAL VIOLATION OF section 305.

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(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

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 2 3. This act shall take effect in 60 180 days.

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