In a unanimous decision issued on October 23, 2025, the Supreme Court of Pennsylvania reaffirmed the Statutory Employer doctrine under the Workers’ Compensation Act, rejecting calls from the plaintiffs’ bar to abolish this long-standing protection for general contractors.
The case, Yoder v. McCarthy Construction, Inc., arose from a workplace injury suffered by Mr. Jason Yoder, an employee of a subcontractor, during a roofing project at the Norwood Public Library. Philadelphia partner Glenn Ricketti represented McCarthy Construction, the general contractor, in the underlying liability action for negligence. At trial, Mr. Ricketti asserted the defense of Statutory Employer immunity, but the late Judge Foglietta ruled that McCarthy did not meet the five-prong test established by Pennsylvania law.
On appeal, the Superior Court reversed, finding that McCarthy satisfied the statutory employer criteria. The plaintiff then appealed to the Supreme Court, urging the Court to discard the Statutory Employer doctrine entirely and arguing that such immunity should be waivable.
In its comprehensive opinion, the Supreme Court unanimously rejected these arguments, reaffirming decades of precedent and holding that the Statutory Employer doctrine remains a cornerstone of Pennsylvania workers’ compensation law. The Court declined to overrule its prior decisions in Fonner and LeFlar, emphasizing that any change to the statutory scheme must come from the General Assembly, not the judiciary.
The Court remanded the case to the trial court for further proceedings to determine whether McCarthy Construction satisfies three disputed elements of the five-part statutory employer test. The trial court will decide these issues, and further appeals may follow depending on the outcome.
This decision preserves the stability and predictability of Pennsylvania’s workers’ compensation system and ensures that legislative change, if warranted, will be made by the appropriate branch of government.
