Pennsylvania Workers Compensation Question?

[chen12]

Regarding somebody I know...Is it true that as of the first of this new year 2011 that a sole-proprietor with zero employees must carry workers comp. because he uses subcontractors? I own a similar business my self and know all the differences between who's a sub and who's an employee and the documentation you have to keep to prove who's who. That aside, I thought comp was only necessary for those with employees. A company we both do work for is withholding his checks for work performed as they have seemingly been made aware of this law. They know he's a sole-proprietor and has no employees. This 'law' is based on the fact that he uses subs on occasion. Does anyone have the answer or the correct web link to point me to? I can't seem to find it on the SWIF website. THANK YOU

[doran]

Yes unless the subcontractors are covered otherwise you must provide coverage.

[christie42]

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Pennsylvania Workers' Compensation Act
Act of 1915, P.L. 736, No. 338, as amended.
Title 77 of Purdon's Statutes
ARTICLE III
Liability and Compensation - Section 302
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"(a) A contractor who subcontracts all or any part of a contract and his insurer shall be liable for the payment of compensation to the employes of the subcontractor unless the subcontractor primarily liable for the payment of such compensation has secured its payment as provided for in this act."