Pa Unemployment Compensation Law Section 402(H)
Section 402(h) of the Law, 43 P.S. 802(h), provides that "an employe shall be ineligible for compensation for any week- in which he is engaged in self-employment . . . ."
The term "self-employment" is not defined in the Law; "however the courts have utilized section 4(l)(2)(B) to fill the void because its obvious purpose is to exclude independent contractors from coverage." Beacon Flag Car Co., Inc. v. Unemployment Compensation Board of Review, 910 A.2d 103, 107 (Pa. Cmwlth. 2006).
Section 4(l)(2)(B) of the Law, 43 P.S. 753(l)(2)(B), provides:
Services performed by an individual for wages shall be deemed to be employment subject to this act, unless and until it is shown to the satisfaction of the department that-(a) such individual has been and will continue to be free from control or direction over the performance of such services both under his contract of service and in fact; and (b) as to such services such individual is customarily engaged in an independently established trade, occupation, profession or business.
In Beacon Flag, this Court noted:
This provision presumes that an individual is an employee, as opposed to an independent contractor, but this presumption may be overcome if the putative employer sustains its burden of showing that the claimant was free from control and direction in the performance of his service and that, as to such service, was customarily engaged in an independent trade or business. Id. at 107.