Acts 121 and Act 126 Signed into Law by Pennsylvania Governor Shapiro

Act 126 establishes direct deposit for the payment of wage benefits to claimants. Employers and insurance carriers will be able to require direct deposit 60 days after the bill is signed and will be required to pay benefits by direct deposit, if requested, one year and 60 days after the bill is signed. A person entitled to compensation who requests direct deposit must submit an accurate and valid payment authorization form, or a valid online authorization form, to the insurer or self-insured employer. The insurer or employer is not required to pay compensation by direct deposit unless a proper form is submitted. If the insurer or employer requires payment by direct deposit and a valid payment authorization form has not been submitted within 30 days of receiving notification of the requirement, the insurer or employer must temporarily pay compensation by paper check. Lump sum settlement payments made as a result of a C&R Agreement may be made by paper check unless the insurer or self-insured employer agrees to make the payment by direct deposit.

Act 121 relates to first responders and post-traumatic stress injuries (PTSI) and would ease first responders’ burden of seeking benefits for psychological trauma from work-related traumatic events. Claimants would no longer have to prove that a psychiatric injury was caused by abnormal working conditions. The law applies to specified categories of public employees and stipulates that PTSI must result from an individual undergoing a qualifying traumatic event, and limits benefits to 104 weeks. The Act also requires a diagnosis to be made by a licensed psychologist or psychiatrist. Claims must also be filed within three years of the date of diagnosis.  

_{What’s Hot in Workers’ Comp – Special PA Alert – October 30, 2024, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2024 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.}