Short answer: Yes. Pennsylvania requires nearly every employer with one or more employees, including part-time workers and family members, to carry workers' compensation, according to the Department of Labor & Industry. An employer is excluded only if all of its workers fall into listed categories such as federal, railroad, certain farm or domestic workers. Noncompliance can bring criminal penalties.
The rule and its "all workers" test
The Department of Labor & Industry's compliance page says that an employer may be excluded from the requirement to insure only if all of its workers fall into one or more of these categories:
- Federal workers, longshore workers or railroad workers covered by federal programs
- Casual workers whose work is casual in character and not in the regular course of the employer's business
- Certain agricultural workers below the statute's wage and day thresholds
- Domestic workers, unless the employer elects coverage
- Workers with an approved religious or executive officer exemption
If even one worker falls outside those categories, you need coverage.
Owners and officers
Sole proprietors and general partners without employees are outside the Act. Executive officers of a for-profit corporation who meet ownership rules can file an exemption for themselves, and certain LLC members can as well. Those exemptions never extend to the business's employees.
Why it matters
The Department stresses that insurance protects employers in three ways. It satisfies the law, protects the business from tort lawsuits over work injuries, and protects the employer and its agents from criminal prosecution, which can bring imprisonment and substantial fines for each day of noncompliance.
Where to buy
Pennsylvania employers can buy from a private insurer, from the State Workers' Insurance Fund (SWIF), the insurer of last resort, or qualify to self-insure. L&I's purchasing guide explains the options and offers a coverage search.
Bottom line
Read the exclusion list as all-or-nothing. One regular employee outside it means you must insure. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Pennsylvania.
Frequently asked questions
Is workers' comp required in Pennsylvania for one employee?
Yes. Employers with one or more employees, including part-time and family members, generally must insure.
When is a Pennsylvania employer excluded?
Only if every worker falls into a listed category such as federal, railroad, qualifying farm, domestic or exempt executive workers.
Can Pennsylvania officers exempt themselves?
Qualifying executive officers and certain LLC members can file exemptions for themselves only.
What is SWIF?
The State Workers' Insurance Fund, Pennsylvania's insurer of last resort for workers' comp.
What are the penalties for no coverage in Pennsylvania?
Criminal prosecution, with possible imprisonment and fines for each day of noncompliance, plus loss of lawsuit protection.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.