drivers as independent contractors (Count I), as well as an order compelling AEX to comply with its obligations under the Pennsylvania Workers’ Compensation Act (WCA), 77 Pa. Stat. Specifically, under the Pennsylvania Wage Payment and Collection Law (“PWPCL”), 43 P.S. Ann. 0 9���b1 _�[$�C�(0��N�t����U@ӆ[� m��~�_�[��[� �C��� �>���[��x ����!l��Z� {諺�=��v����k��!�x^>t��x,�Ű)A^��az��2�)%V����㯹�� Pennsylvania courts have ruled that the most important characteristic of the employee relationship is that the employer not only controls the result of the work but also has the right to direct the way in which the work is done. Pennsylvania wage and hour claims are governed by the Pennsylvania Minimum Wage Act of 1968 (PMWA) 1 and Wage Payment and Collection Law (WPCL) 2. It contains teeth for the enforcement of its provisions. © 2021 BLR®, a division of Simplify Compliance LLC. An employee … "�8����1A��R�p�7�O �tO�p+a?�-^B�n�n7����r����ж�{�m��Ѹt� ��[��>��u��� ^�������_o�0o����ߌ��$`�vbm�s � � McQuaide Blasko’s Labor and Employment Law Practice Group has experience representing clients ranging from individual employees to small businesses to large employers with thousands of employees. § 260.1 et seq. ܥ�3y300.c>�Z�о8'SeR�B���� 43 P.S. Independent contractors are not … There are many factors to consider in making the distinction between an employee and an independent contractor, but the most determinative factor is control. %%EOF Pennsylvania Wage Payment and Collection Law Hiring and firing employees requires consideration of multiple legal issues. When an employee is hired or separates from employment, one statute both the employee and employer must consider is the Pennsylvania Wage Payment and Collection Law (“WPCL”) 43 P.S. Labor and Employment Law. If You Have Been Misclassified as a Self-Employed Independent Contractor, You May Recover Compensation Under Pennsylvania's Wage Payment and Collection Law I frequently am contacted by workers who had signed independent contractor agreements, and are paid as if they are self-employed, but in fact do the same job as co-workers who are paid on a w-2 basis. Pennsylvania … It regulates how much workers must be paid, how many hours they can be required … If an employer pays wages semi-monthly,the first payment must be made between the first and fifteenth day of each month, and the second payment must be made between the fifteenth and the last day of each month. Under the Fair Labor Standards Act (FLSA), an employment relationship must be distinguished from a strictly contractual one. Where an employe works off the premises of the employer under circumstances which prevent adequate supervision by the employer, or in the case of a residential employe, the Secretary will approve any reasonable agreement between the employer and employe … Pennsylvania Independent Contractors: What you need to know. In Pennsylvania, federal and state laws govern pay day laws including wage and hour requirements. In some situations, federal law will govern, but the question is most often resolved by looking to state law, particularly in areas such as unemployment tax liability, workers' compensation, and state wage and hour requirements. Frequency of Wage Payments. §§ 260.1, et seq., permissible deductions are limited to those specifically identified in 34 Pa. Code § 9.1(1)-(12). The characteristic of the independent contractor relationship is that the person engaged in the work has exclusive control of how to perform it, being responsible only for the result. Independent contractors also typically work away from the client's place of business, supply their own tools and equipment, and provide a specialized skill. p����-x��JB�(�#�HñA �M4�n�Sp�X�E��&�ȅ˨k%�ׯ_ӑs�z4��1�]>�W�h����#a���ኁ��o�)��&��&��(�t��h�I�R�d���ä=/U�N���]�|��5ͼ=���`��pZ�f��se2ˋ|�F�=�+zz||T.����7d����ɧr�������bVN������^���7~D`����0m�n�7_���m�VtR:��}��m�r�΍ M����U}{�����תS@��dZ�.I.�ɼi���_��>QGc��vړrVO�^\ֳjI�W��b>+��N���AV����h>�q:غ��܅E���.�=m�i=5�ӊ0��j����o���_�Tƭ7M�3��p�K����o��~��Q����I�X��w�����n3�л�[��q_�9��bv���[^c��)Br�9Q Whether a worker is an employee or an independent contractor is a question of law to be determined by a Workers Compensation Judge after evidence is presented. Many of these concern “typical” deductions such as taxes, contributions to pension plans and donations to charitable organizations. In addition, the method of payment for the services is not determinative, nor is the fact that no provision is made for Social Security or income tax. Pennsylvania employers must pay all covered employees at least $7.25 per hour. MINIMUM WAGE . §260.1 et seq.   Independent Contractor Laws May Vary . However, the determination is heavily dependent upon the facts of the relationship between the injured worker and the company for whom he/she was providing services. The WPCL was enacted to provide a vehicle for employees to enforce payment of their wages and compensation held by their employers. Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. 109.03(1)(1)  Every employer shall as often as monthly pay to every employee engaged in the employer's business, except those employees engaged in logging operations and farm labor, all wages earned by the employee to a day not more than 31 days prior to the date of payment. A worker is considered to be an employee unless proven otherwise. 80�M�``���y��d>�2cJ؂ ���"d������80p�O�� v�$c��f�rd ���"��c`��2 (�` ��$� If the employer fails to pay the claim or explain to the secretary why it has failed to do so within ten days after the employer receives a certified notice from the secretary, … The individual has been and will continue to be free from control or direction over the performance of the services involved, both under the contract of service and in fact, and The Wage Payment and Collection Law is not just a collection of mandates from on high. Employee or Independent Contractor. The PMWA and WPCL are enforced by the Pennsylvania Department of Labor and Industry or through private lawsuits. Pennsylvania Independent Contractors Resources. Additionally, Pennsylvania allows the cost of meals, lodging or other facilities customarily furnished by employers as credits. If the following four conditions are met, you must generally report a payment as nonemployee compensation. 0@�3@�a�[���$�1l%0^��9��kC_��$s[8[죮�����`�J�^��4h�,JYsI*�g�t�h��\R~���Wb5� Plaintiffs also bring claims for monetary relief for violations of the Pennsylvania Wage Payment and Collection Law (WPCL), 43 Pa. Stat. ʵ�(�8��� [���v�WHvM+c[�Z��{�a���8�V�*���kaL���?ea���t��`{���[#�!�b��.���+h>+��\���6�?�A���Vd%�)/ L-���6r`_Б��]R��ob+=4�D.���"d��!�����z������v��k? The amount of those We have helped clients on a … This classification also matters for unemployment compensation though. The answer can be found in the Pennsylvania Wage Payment and Collection Law. Unless otherwise stipulated in a contract of hiring, an employer must pay employees not paid by an annual salary at least semi-monthly. 295 0 obj <> endobj Maryland’s wage payment laws only apply to employees, not to independent contractors. It is not actual interference or exercise of control by the employer but the existence of the right or authority to interfere or control that makes an individual an employee rather than an independent contractor (. § 501 (Count V). New Jersey and Philadelphia Independent Contractor Lawyer. The IRS has its take, and there are tons of court opinions weighing in on wage and hour issues. 100 Winners Circle, Suite 300, Brentwood, TN 37027 800-727-5257. Communications with Debtor Unless they have your prior consent […] For purposes of workers' compensation, unemployment compensation, and improper classification of employees, an individual who performs services in the construction industry for remuneration is an independent contractor only ... Model Client-Independent Contractor Agreement, See all Independent Contractors Resources. endstream endobj startxref [�7G%y�Hw����]ܒ��= Bw���'�����;) �dC�]AgVcnq8�o#� �j`�b���ߨ��䐆OЕD"n!�D� 5�Ɇ However, it is the reality of the working relationship—and not a job title or label given by your employer—that determines whether you are an employee or an independent contractor. If you have been misclassified as an independent contractor, you may be owed significant back wages. To be an independent contractor both of the following must be shown to the satisfaction of the department:. However, “independent contractor” has a specific definition under Pennsylvania and New Jersey law. Employee or Independent Contractor? To make things more … The Wage Payment and Collection Law, 43 Pa C. S. §260.1 (WPCL), is a Pennsylvania employment law that provides a means by which employees are able to recover unpaid wages from their employers. 310 0 obj <>/Filter/FlateDecode/ID[<26C8A94886BCD44E8EFB280D4478D5C6><4CE80D1203489947BB0EC27B723B8DB9>]/Index[295 35]/Info 294 0 R/Length 78/Prev 98803/Root 296 0 R/Size 330/Type/XRef/W[1 2 1]>>stream The Pennsylvania Supreme Court has ruled that an Uber driver should be considered an employee. Some employers misclassify workers as independent contractors when they really are employees, in order to save on taxes, avoid paying minimum wage or overtime, or shirk other responsibilities. For instance, an employee or labor organization can bring a claim against the employer under the law, or can refer its claim to the Pennsylvania Secretary of Labor. Many employers in the Pennsylvania building trades will attempt to classify employees as “independent contractors” to avoid paying taxes on their wages as well as other potential liabilities such as workers compensation. In one such case, the Pennsylvania Superior Court recently ruled that an employer violated the Pennsylvania Wage Payment and Collection Law (WPCL) by requiring employees to accept their wages on a payroll debit card, rather than in cash or by check. Washington Independent Contractors: What you need to know Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. In complying with the minimum wage requirement for hourly employees, employers may credit any commissions earned by the employee. The Construction Workplace Misclassification Act, 43 P.S. All rights reserved. If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business. This is an employment law that employees can use to secure the payment of compensation and wages that they are owed from their employers. Experienced employment discrimination lawyer for employees fighting age, race, sex, disability, religion and national origin discrimination, sexual harassment, FMLA violations and unemployment compensation. 109.03109.03 When wages payable; pay orders. The title given an individual by the alleged employer is not conclusive as to whether the person is an employe or an independent contractor. h�bbd``b`�$[AD �`��) �D��A�Ga"�@�s�e �$.F2012n��N�g�� � �& �7�4�{U���. �O{`�{u{��{��]�v-ۍ���D�}W�p%[a'� ��c-���X�#n�2�P�%����/�lr���:��n�. In Pennsylvania, workers have protections and a method to enforce the payment of their paychecks under the Pennsylvania Wage Payment and Collection Law. endstream endobj 296 0 obj <>/Metadata 28 0 R/PageLayout/OneColumn/Pages 293 0 R/StructTreeRoot 43 0 R/Type/Catalog>> endobj 297 0 obj <>/ExtGState<>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 298 0 obj <>stream (a) Every contract to which the Commonwealth, its political subdivisions, an authority created by the General Assembly of the Commonwealth including authorities created under the Municipality Authorities Act of 1945 (53 P. S. §§ 301 - 401) and instrumentalities or agencies of the Commonwealth is a party, for construction, reconstruction, demolition, alteration or repair work other than maintenance work where the estimated cost of the total project is in excess of $25,000, which requires or involves the employment b… How employers classify the people who work for them can have important implications for everything from taxes to wage and hour issues. The Fair Credit Extension Uniformity Act regulates the debt collection activities of debt collectors and creditors in Pennsylvania. This law, effective as of June 26, 2000, prohibits debt collectors and creditors from engaging in certain unfair or deceptive acts or practices while attempting to collect debts. Pennsylvania Wage Payment and Collection Law (“WPCL”).8 Kleinknecht claims by analogy that the Contractor and Subcontractor Payment Act is applicable. Showing 1 post in Pennsylvania Wage Payment and Collection Law. The major federal law governing wages and hours is called the Fair Labor Standards Act (FLSA). The major state laws governing pay day requirements is known as Pennsylvania Wage Payment and Collection law. In several cases, Pennsylvania companies and their lawyers have convinced judges to hold that the Pennsylvania Wage Payment and Collection Law (“PWPCL”) does not give employees any wage or overtime rights beyond those for which the employer is contractually obligated (through either a written or oral contract) to pay. �V$X��r���}�;Z��4AX��/�ڝȪx�GV7��x*��S�/��ZBQ�H`��5��5 §260.1 et seq. Pennsylvania independent contractor law defines who is considered an employee and who works on a freelance basis. The underlying purpose of the WPCL is to remove some of the … 329 0 obj <>stream Consequently, honest employers have a difficult time competing against those who fail to follow the law. @�F6��-lV��٬�7`�A��ͦ���B�ۘl,�-�o�٤�:���/NQ^ܵ��+J���Ou����&�-[���zZ����ay0;X�U�T���o�f;+�i;���e���0 p�� ��rG�, In general, an employee works for a company directly and must follow the employer's instructions when it comes to the performance and timing of work tasks. July 17, 2018 by Tom H. Luetkemeyer. %PDF-1.5 %���� The Legislature clearly intended the scope of the WPCL to be far broader. The Pennsylvania Contractor and Subcontractor Payment Act, known as CAPSA or simply the Payment Act, was passed into law in 1994. Whether a worker is an “employee” or an “independent contractor” is critical when it comes to such important issues as pension eligibility, workers' compensation coverage, wage and hour law, and many other matters. Massachusetts filed a lawsuit in July 2020 against Uber and Lyft, seeking a court ruling that these drivers are employees under the state’s wage and hour laws. The Pennsylvania Wage Payment and Collection Law (WPCL) does not create a right to wages or benefits, but provides a statutory remedy where the employer breaches a contractual righ t to wages that have been earned. State Common Law Claims May Be Preempted By The Fair Labor Standards Act . H�|Tmo�0��_q�&{ZLl'N��J���UK+�*����۠����%NB;��l���y�Ik�����u}~������{�Y�·L��렕�h�����cܲ�m���4J�6������eh/�����_d�3�TŐO!,�HTҎ1Z>��gv"��m]��{~f�*R&Ί����a�Hw+�����2ԑ������u8�a&F=�aԗa*�\\u While the law does not create a substantive right to be compensated, it does establish a mechanism by which you can enforce the payment of compensation … endstream endobj 299 0 obj <>stream Pennsylvania Commissioned Sales Representatives Law - Philadelphia Employment Law Lawyer Pennsylvania’s wage and hour laws apply to all individuals who are employees of an employer. The intent was “to cure abuses within the building industry involving payments due from owners to contractors, contractors to … Call us at 267-470-4742. (b) The minimum wage shall be paid for hours worked, regardless of the frequency of payment and regardless of whether the wage is paid on an hourly, salaried, or commissioned, piece rate, or any other basis. h�b```�$.5``��0pl r Ann. 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