The bill amends the Workers' Compensation Act of June 2, 1915, by adding a new section, 304.3, which allows individuals to register their status as independent contractors with the department for Federal income tax purposes. This registration requires a written waiver from the individual, affirming that they understand they are not classified as an employee and are not entitled to benefits under the Workers' Compensation Act. The registration also includes an affidavit confirming the individual's awareness of their rights and responsibilities, including the option to purchase their own workers' compensation insurance.

Furthermore, the bill stipulates that once registered, the individual will not be eligible for benefits from the Uninsured Employers Guaranty Fund if injured while performing services as an independent contractor. The registration remains valid for future years unless revoked by the individual, who must follow a specific process to do so. The bill also prohibits any person from coercing an individual into completing the waiver or refraining from revocation, with penalties for violations. Importantly, the new section does not alter any provisions of the Construction Workplace Misclassification Act. The act is set to take effect 180 days after its passage.

Statutes/Laws affected:
Printer's No. 1005 (Jun 24, 2025): P.L.736, No.338