2021 Pennsylvania Consolidated & Unconsolidated Statutes
Act 95 - WORKERS' COMPENSATION ACT - MODIFICATIONS, REINSTATEMENTS, SUSPENSIONS AND TERMINATIONS AND COMPROMISE AND RELEASE

Session of 2021

No. 2021-95

HB 1837

AN ACT

Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An act defining the liability of an employer to pay damages for injuries received by an employe in the course of employment; establishing an elective schedule of compensation; providing procedure for the determination of liability and compensation thereunder; and prescribing penalties," in procedure, further providing for modifications, reinstatements, suspensions and terminations and for compromise and release.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1.  Sections 413(c) and (d) and 449(c) of the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, are amended to read:

Section 413.  * * *

(c)  Notwithstanding any provision of this act, an insurer may suspend the compensation during the time the employe has returned to work at his prior or increased earnings upon written notification of suspension by the insurer to the employe and the department, on a form prescribed by the department for this purpose. The notification of suspension shall include [an affidavit] a verification by the insurer that compensation has been suspended because the employe has returned to work at prior or increased earnings. The insurer must mail the notification of suspension to the employe and the department within seven days of the insurer suspending compensation.

(1)  If the employe contests the averments of the insurer's [affidavit] verification, a special supersedeas hearing before a workers' compensation judge may be requested by the employe indicating by a checkoff on the notification form that the suspension of benefits is being challenged and filing the notification of challenge with the department within twenty days of receipt of the notification of suspension from the insurer. The special supersedeas hearing shall be held within twenty-one days of the employe's filing of the notification of challenge.

(2)  If the employe does not challenge the insurer's notification of suspension within twenty days under paragraph (1), the employe shall be deemed to have admitted to the return to work and receipt of wages at prior or increased earnings. The insurer's notification of suspension shall be deemed to have the same binding effect as a fully executed supplemental agreement for the suspension of benefits.

(d)  Notwithstanding any provision of this act, an insurer may modify the compensation payments made during the time the employe has returned to work at earnings less than the employe earned at the time of the work-related injury, upon written notification of modification by the insurer to the employe and the department, on a form prescribed by the department for this purpose. The notification of modification shall include [an affidavit] a verification by the insurer that compensation has been modified because the employe has returned to work at lesser earnings. The insurer must mail the notification of modification to the employe and the department within seven days of the insurer's modifying compensation.

(1)  If the employe contests the averments of the insurer's [affidavit] verification, a special supersedeas hearing before a workers' compensation judge may be requested by the employe indicating by a checkoff on the notification form that the modification of benefits is being challenged and filing the notification of challenge with the department within twenty days of receipt of the notification of modification from the insurer. The special supersedeas hearing shall be held within twenty-one days of the employe's filing of the notification of challenge.

(2)  If the employe does not challenge the insurer's notification of modification within twenty days under paragraph (1), the employe shall be deemed to have admitted to the return to work and receipt of wages at lesser earnings as alleged by the insurer. The insurer's notification of modification shall be deemed to have the same binding effect as a fully executed supplemental agreement for the modification of benefits.

Section 449.  * * *

(c)  Every compromise and release by stipulation shall be in writing and duly executed, and the signature of the employe, widow or widower or dependent shall be attested by two witnesses or acknowledged before a notary public. However, the attestation by two witnesses or acknowledgment before a notary public shall not be required if the employe, widow or widower or dependent appears before the workers' compensation judge for the purposes of a hearing required under subsection (b) and provides a sworn oral statement that he or she understands the full legal significance of the agreement. The document shall specify:

(1)  the date of the injury or occupational disease;

(2)  the average weekly wage of the employe as calculated under section 309;

(3)  the injury, the nature of the injury and the nature of disability, whether total or partial;

(4)  the weekly compensation rate paid or payable;

(5)  the amount paid or due and unpaid to the employe or dependent up to the date of the stipulation or agreement or death and the amount of the payment of disability benefits then or thereafter to be made;

(6)  the length of time such payment of benefits is to continue;

(7)  in the event of a lien for subrogation under section 319, the total amount of compensation paid or payable which should be allowed to the employer or insurer;

(8)  in the case of death:

(i)  the date of death;

(ii)  the name of the widow or widower;

(iii)  the names and ages of all children;

(iv)  the names of all other dependents; and

(v)  the amount paid or to be paid under section 307 and to whom payment is to be made;

(9)  a listing of all benefits received or available to the claimant;

(10)  a disclosure of the issues of the case and the reasons why the parties are agreeing to the agreement; and

(11)  the fact that the claimant is represented by an attorney of his or her own choosing or that the claimant has been specifically informed of the right to representation by an attorney of his or her own choosing and has declined such representation.

* * *

Section 2.  This act shall take effect in 60 days.

APPROVED--The 22nd day of December, A.D. 2021.

TOM WOLF