Virtually all employees must be covered by workers' compensation insurance (PA Stat. Tit. 77). The requirement to insure workers’ compensation liability is mandatory for any employer that employs at least one employee who:
• Could be injured or develop a work-related disease in Pennsylvania;
• Could be injured outside the state if the employment is principally localized in Pennsylvania; or
• Could be injured outside the state, while under a contract of hire made in Pennsylvania, if the employment is not principally localized in any state, is principally localized in a state whose workers’ compensation laws do not apply, or is outside the United States and Canada.
The foregoing applies unless all employees are excluded from the provisions of Pennsylvania’s workers’ compensation laws. The following types of employees are excluded:
• Federal workers;
• Railroad workers;
• Individuals working out of their own homes on articles or materials for sale that are given to them;
• Casual workers outside the employer's regular course of business;
• Agricultural laborers earning less than $1,200 annually, if none work 30 days or more per calendar year or the labor is provided by the employer’s spouse and children under the age of 18;
• Sole proprietors or general partners;
• Individuals granted a religious exemption by the state Department of Labor and Industry (DLI);
• Executive officers granted an exclusion by the DLI; and
• Licensed real estate salespersons or associate brokers paid by commission and considered independent contractors.