Worker's compensation insurance is a mandatory form of coverage for most employers that protects them and their employees and in case of work-related injuries or illnesses. It provides medical care and cost coverage, partial wage replacement, and other benefits for work-related injuries or illnesses. The coverage is mandated by state governments, with benefits varying from state to state.
State-specific Requirements
Workers' compensation benefits vary by state but generally include:
- Medical care coverage for work-related injuries or illnesses
- Wage replacement for lost income during recovery
- Temporary and permanent disability benefits
- Rehabilitation and occupational therapy
- Death benefits for survivors in case of fatal injuries
Pennsylvania's specific benefits are:
- A maximum weekly compensation rate of $1,273 (as of 2023)
- Coverage for all necessary medical treatment, including hospitalization, prescriptions, and orthopedic appliances
- Temporary Partial Disability (TPD) benefits for workers with a disability rating of 35% or less
- Compensation for permanent loss or loss of use of particular body parts or functions
It's important to remember that these benefits are subject to certain limitations and conditions and may be modified based on changes in the worker's medical status or return-to-work offerings.
Penalties for Non-Compliance
Penalties for non-compliance with worker's compensation insurance requirements in Pennsylvania are severe and include both criminal and civil consequences:
Criminal Penalties
- Misdemeanor charges: Up to one year in jail and a $2,500 fine for each day without coverage
- Felony charges for intentional violations: Up to seven years in prison and a $15,000 fine
- Each day without coverage counts as a separate offense
Civil Penalties
- Injured workers can sue their employers for damages, potentially exceeding standard worker's compensation benefits
- Liability for all compensation, medical expenses, and damages in case of employee injuries
With some of the strictest rules in the nation regarding worker's compensation non-compliance, Pennsylvania's penalties are a strong deterrent to ensure employers maintain proper coverage for their employees.
Exemptions
In Pennsylvania, several categories of workers are exempt from mandatory worker’s compensation coverage:
- Federal employees, railroad workers, and longshoremen (covered under other worker’s compensation acts)
- Domestic servants (coverage is optional)
- Agricultural workers who work fewer than 30 days or earn less than $1,200 in a calendar year from one employer
- Casual workers whose employment is not in the regular course of the employer's business
- Employees granted an exemption due to religious beliefs
- Executive officers who have been granted exclusion by the Department of Labor and Industry
- Sole proprietors and general partners (unless they elect to be covered)
- Volunteer workers
- Certain licensed real estate salespersons or associate real estate brokers
- Persons who work from their own homes or other premises not under the control of the employer, performing specific tasks on materials given to them
Although these workers are exempt from mandatory coverage, some employers may still provide worker’s compensation insurance to attract talent and avoid potential lawsuits.
Don’t Overpay for Your Worker’s Compensation Insurance
Find the right worker's comp insurance coverage for your business at the right price; contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848 to get started.
