Pennsylvania Independent Contractor Agreement

Act 72 of 2010 (43 P.S. §§ 933.1-933.17) specifically targets construction industry misclassification. It creates a strong presumption that construction workers are employees. To rebut this presumption, the contractor must meet 6 criteria: no supervision, separately established business, written contract, supplies own tools, hired multiple clients, and performs different work than the hiring entity.

For construction workers, Act 72 requires a written independent contractor agreement. For other industries, no statute mandates a written agreement, but having one is essential to document independent status and protect both parties if classification is challenged.

Consequences include: back unemployment compensation (UC) assessments, workers' compensation penalties, PA Department of Revenue income tax assessments, civil penalties under Act 72 (construction), employee wage and benefits claims, and potential criminal misdemeanor charges for willful violations.

Yes, Pennsylvania courts enforce non-competes in contractor agreements subject to the same reasonableness test applied to employment non-competes. The restriction must protect a legitimate business interest and be reasonable in time and geographic scope.