Pennsylvania Independent Contractors laws & HR compliance analysis

Pennsylvania Independent Contractors: What you need to know

Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. In some situations, federal law will govern, but the question is most often resolved by looking to state law, particularly in areas such as unemployment tax liability, workers' compensation, and state wage and hour requirements.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
Pennsylvania courts have ruled that the most important characteristic of the employee relationship is that the employer not only controls the result of the work but also has the right to direct the way in which the work is done. The characteristic of the independent contractor relationship is that the person engaged in the work has exclusive control of how to perform it, being responsible only for the result. It is not actual interference or exercise of control by the employer but the existence of the right or authority to interfere or control that makes an individual an employee rather than an independent contractor (Stevens v. Publishers Agency, 170 Pa.Super. 385 (1952)).
The title given an individual by the alleged employer is not conclusive as to whether the person is an employe or an independent contractor. In addition, the method of payment for the services is not determinative, nor is the fact that no provision is made for Social Security or income tax.
For purposes of workers' compensation, unemployment compensation, and improper classification of employees, an individual who performs services in the construction industry for remuneration is an independent contractor only ...

Read more about Independent Contractors