Legislation, HB 440, that aims to clarify the definition of an independent contractor under the state’s workers compensation law is before Governor Corbett. According to an analysis provided by the House Republican Caucus the legislation does the following:

  • Expands the definition of an “independent contractor” to include all sole proprietors, partners of a partnership and officers of a Limited Liability Company (LLC) by repealing Section of 1526 of the Workers’ Compensation Act that expanded coverage solely to loggers operating as sole proprietors.
  • Authorizes insurers to voluntary provide workers’ compensation coverage to sole proprietors, partners in partnerships, and members of LLCs that is equivalent to normal workers’ compensation coverage.
  • Transfers $4 million from the Workers' Compensation Administration Fund to provide greater sustainability to the Uninsured Employer Guaranty Fund (Senate Amendment).