Many PA Employers Are Not Paying for Workers' Compensation Insurance

Personal Injury Blog

Misclassified by Employers to Avoid Paying Workers’ Comp Premiums

There is a bill in Pennsylvania courts to combat PA employers from misclassifying their staff as independent contractors to avoid paying the required workers’ compensation premiums, any overtime pay, and taxes. The bill is being proposed by Senator Mike Stack, who is on record as saying that “Pennsylvania's record of enforcement is a disservice not only to working families, but also to every taxpayer in the state. Federal officials understand that misclassification of workers means payroll taxes are not withheld, resulting in reduced tax collections. Everyone pays while a few benefit."

While there are already laws in place which apply penalties to employers who use this tactic, those are simply not working. Only one-third of the cases pending in Pennsylvania have been resolved. Some local governments and states have developed wage theft laws to crack down on the problem, but the theft of wages is still running rampant in some areas. There have been attempts to deny licensing to employers that have been caught, and some states have even adopted laws that allow these employers to be prosecuted in a civil court.

Workers’ Compensation As It Was Intended

Workers’ Compensation system was put into place for injured employees to receive compensation to help them stay afloat until they can return to work. Having Workers’ Compensation benefits available for workers means they have a method to receive reimbursement for their doctor bills or lost wages. The law requires employers to provide workers’ compensation insurance in case of a workplace injury that leaves the employee unable to perform their job duties so that the worker can concentrate on healing, rather than how much work they are missing.

The Pennsylvania Workers’ Compensation Process is Complicated

There are a myriad of pitfalls that can harm your workers’ compensation claim, and there are time constraints for virtually every step of the process. One incomplete form, or one turned in past the deadline, can seriously harm your chance of receiving workers’ compensation benefits for your injury.

Trust the experienced workers’ compensation attorneys at Handler Henning & Rosenberg to handle your claim in the most efficient way possible, to get your benefits as soon as possible. We offer a Free Consultation about all Workers’ Compensation claims to help you get started right away. We have offices in Harrisburg PA, Hanover PA, Lancaster PA, Carlisle PA, and York PA to serve you.