Who Needs Workers' Comp in Pennsylvania?
Pennsylvania's Workers' Compensation Act (Act 44) requires virtually all employers to provide workers' compensation coverage. This includes full-time, part-time, and seasonal employees. Most family members working in the business must also be covered. Executive officers are automatically included but can file an exemption with proper documentation.
Penalties for Non-Compliance
Pennsylvania distinguishes between intentional and unintentional non-compliance. Intentional failure to carry coverage is a felony of the third degree, with fines up to $2,500 per day and potential imprisonment. Unintentional non-compliance is a misdemeanor of the first degree. In both cases, the employer is personally liable for all employee injury costs, and employees retain the right to sue the employer directly.
The PCRB and How Rates Work
Pennsylvania has its own independent rating bureau — the Pennsylvania Compensation Rating Bureau (PCRB) — which develops class codes, manual rates, and experience rating plans. While many codes are similar to NCCI codes, Pennsylvania has its own rate structure. Carriers can apply deviations to PCRB rates, so premiums vary between carriers. The State Workers' Insurance Fund (SWIF) is also available as an option, particularly for employers who have difficulty finding coverage in the private market.
Common Pennsylvania Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8832 | Professional Services | Low |
| 8031 | Hospitals | Medium |
| 5183 | Plumbing NOC | Medium |
| 3004 | Iron/Steel Manufacturing | Medium-High |
| 5403 | Carpentry NOC | Medium-High |
| 5551 | Roofing — All Kinds | High |