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Workers’ Compensation Insurance Requirements in Pennsylvania
Pennsylvania requires workers’ comp from your first employee and treats willful noncompliance as a felony — Trade Safe gets contractors covered before that risk becomes real.
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Workers’ Compensation Insurance Requirements in Pennsylvania
Pennsylvania takes workers’ comp compliance seriously: going without required coverage can be charged as a felony, not just a fine. For construction contractors, the Construction Workplace Misclassification Act adds another layer of scrutiny, requiring independent contractors to carry their own liability insurance or risk being reclassified as employees.
Pennsylvania Workers’ Compensation Legal Requirements
Pennsylvania requires coverage from the first employee under the state’s Workers’ Compensation Act, with narrow exemptions for domestic servants, limited agricultural workers, and certain executive officers who apply for and receive an exemption.
- Coverage required from the first employee, whether full-time, part-time, or a family member — no small-employer exemption
- Sole proprietors and partners with no employees are not required to cover themselves; corporate officers may apply for an exemption
- Failure to insure is a misdemeanor (up to $2,500 fine and 1 year imprisonment per day) that escalates to a felony (up to $15,000 fine and 7 years imprisonment per day) if deemed intentional
- The Construction Workplace Misclassification Act requires construction independent contractors to carry at least $50,000 in liability insurance and meet a strict multi-factor test, or be treated as employees
How Pennsylvania’s Workers’ Comp System Works
System type: Private Carrier Market
Pennsylvania is a private-carrier state with a state fund option: employers can buy coverage from any licensed private insurer, from the State Workers’ Insurance Fund (SWIF), or self-insure with Department of Labor & Industry approval. Per the Oregon DCBS 2024 rate ranking study, Pennsylvania’s overall index rate ranks 21st of 51 states, about 5% above the national median — squarely mid-pack nationally.
How Pennsylvania’s Rates Compare by Trade
| Trade (NCCI Class Code) | National Rank (of 51) | Rate per $100 of Payroll |
|---|---|---|
| Roofing (Class 5551) | 40th of 51 | $3.43 |
| Electrical Wiring (Class 5190) | 17th of 51 | $2.72 |
| Plumbing NOC (Class 5183) | 10th of 51 | $3.52 |
Source: Oregon Dept. of Consumer and Business Services, 2024 Workers’ Compensation Premium Rate Ranking Study (published June 2025) — the only study benchmarking all 50 states plus DC on a common industry mix.
Filing a Workers’ Comp Claim in Pennsylvania
An injured employee reports the injury to their employer, who (or whose insurer) must issue a Notice of Compensation Payable, Denial, or Temporary Notice within 21 days. Disputed claims go before a Workers’ Compensation Judge through the Bureau of Workers’ Compensation for adjudication. If the employer is uninsured, the Uninsured Employers Guaranty Fund (UEGF) can pay the claim while the state pursues the employer for reimbursement.
Penalties for Non-Compliance
Under the Pennsylvania Workers’ Compensation Act, failing to insure is a misdemeanor punishable by up to $2,500 and one year imprisonment per day of violation, escalating to a felony with fines up to $15,000 and up to seven years imprisonment per day if the failure is intentional.
Resources: PA Department of Labor & Industry – Workers’ Compensation, PA L&I – Workers’ Compensation Compliance, PA State Workers’ Insurance Fund (SWIF)
How Much Does Workers’ Comp Insurance Cost in Pennsylvania?
Pennsylvania’s rates sit close to the national median overall, but individual trades vary — plumbing runs notably higher than roofing in this state, a reversal of the pattern seen in many other states.
| Trade | Estimated Cost per $100 Payroll | What Drives It |
|---|---|---|
| Roofing | $3.43 (per the Oregon study’s Class 5551 rate) | Pennsylvania’s roofing rate ranks comparatively low nationally, well below high-cost states like New York or Georgia |
| Electrical | $2.72 (per the Oregon study’s Class 5190 rate) | Mid-pack nationally, reflecting moderate shock and fall exposure balanced against the state’s claims experience |
| Plumbing | $3.52 (per the Oregon study’s Class 5183 rate) | Plumbing ranks 10th-highest nationally in Pennsylvania, among the priciest trades tracked in the state |
What Moves the Price Up or Down
- Whether you insure through a private carrier or the State Workers’ Insurance Fund (SWIF)
- Your experience modification factor, based on claims history relative to industry peers
- Total payroll, since premium is calculated per $100 of payroll
- Correct worker classification under the Construction Workplace Misclassification Act — misclassified workers can trigger penalties and back-premium exposure
Rates shown are drawn from the Oregon DCBS 2024 Workers’ Compensation Premium Rate Ranking Study, a national benchmarking study. Actual premium depends on your experience modification factor, claims history, and payroll — get a personalized quote from Trade Safe for your exact cost.
Frequently Asked Questions
Is workers’ comp required for a single employee in Pennsylvania?
Yes. Pennsylvania requires coverage from your very first employee, including part-time workers and family members on payroll.
Do I have to cover myself as a sole proprietor?
No. Sole proprietors and partners with no employees aren’t required to carry coverage on themselves, though corporate officers must apply for a formal exemption if they want to opt out.
Can I really face felony charges for skipping workers’ comp?
Yes. If a failure to secure required coverage is found to be intentional, Pennsylvania law allows felony charges carrying fines up to $15,000 and up to seven years imprisonment per day of violation.
What is the Construction Workplace Misclassification Act?
It’s a Pennsylvania law (Act 72) that sets a strict test for classifying construction workers as independent contractors, requiring at least $50,000 in liability insurance and proof of an independently established trade — misclassifying employees to avoid coverage can trigger civil penalties and fraud referrals.
Workers’ compensation requirements can change with new legislation — always verify current rules with the Pennsylvania Department of Labor & Industry before making coverage decisions.
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