Pennsylvania uses a strict “control test” to distinguish gig workers as employees or independent contractors, focusing on whether the business directs how, when, and where work occurs. Gig platforms like Uber classify most workers as contractors, but misclassification risks reclassification lawsuits, wage claims, and penalties. No 2025 overhaul exists; instead, proposals like SB 967 aim to fund benefits for app-based contractors without altering status.​
Classification Test
Courts apply a two-prong test: (1) control over manner of work (e.g., tools, supervision) and (2) independent trade status. Gig workers with app-set rates, routes, and schedules often qualify as contractors, ineligible for minimum wage, overtime, or workers’ comp under state law. Exceptions arise if platforms exert employee-like control, triggering FLSA or state reclassification.​
Key Rights and Risks
Contractors handle self-employment taxes, lack unemployment benefits, and bear injury costs, but enjoy scheduling flexibility across apps. Employees gain protections like overtime (1.5x over 40 hours), workers’ comp, and anti-discrimination coverage, with misclassification fines up to $1,000 per violation plus back pay. SB 967 proposes employer-funded benefits pool for gig couriers/transport without reclassification.​
Gig-Specific Developments
Pennsylvania resists ABC tests like California’s AB5, preserving contractor model amid union pushes for employee status. Attorney General probes misclassification, while federal DOL rule emphasizes economic realities over labels. Workers can challenge status via Bureau of Labor or lawsuits, especially if injured on gigs.
SOURCES
[1](https://www.pachamber.org/media/17662/gig_worker_benefits_bill_clears_senate_committee/)
[2](https://sterncohenlaw.com/blog/workers-compensation-for-gig-economy-workers-and-temporary-workers-in-pennsylvania/)
[3](https://www.pachamber.org/media/the_current/gig_economy_oped/)
[4](https://www.postercompliance.com/blog/labor-law-compliance-for-gig-workers-what-employers-need-to-know/)
[5](https://www.akerman.com/en/perspectives/hrdef-worker-classification-in-the-gig-economy-legal-wins-and-strategic-considerations-for-employers.html)
