PRINTER'S NO. 2736
No. 2181 Session of 1991
INTRODUCED BY COHEN, VEON, KASUNIC, GEORGE, McNALLY, F. TAYLOR,
FEE, BILLOW, PESCI, CAPPABIANCA, STUBAN, HALUSKA, GIGLIOTTI,
GERLACH, KOSINSKI, MELIO, CAWLEY, FREEMAN, BELFANTI, STABACK,
JOSEPHS, SALOOM, TRELLO, LUCYK, TANGRETTI, JAMES, WOZNIAK AND
BELARDI, NOVEMBER 18, 1991
REFERRED TO COMMITTEE ON LABOR RELATIONS, NOVEMBER 18, 1991
AN ACT
1 Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
2 reenacted and amended, "An act defining the liability of an
3 employer to pay damages for injuries received by an employe
4 in the course of employment; establishing an elective
5 schedule of compensation; providing procedure for the
6 determination of liability and compensation thereunder; and
7 prescribing penalties," further providing for contractors;
8 further defining "occupational disease" and providing
9 therefor; further providing for partial disability and
10 specific loss; further providing for the running of periods
11 of limitation for other procedural matters, for the rights of
12 employees, and for certain attorney fees; imposing a tax upon
13 the gross receipts of workers' compensation insurance
14 carriers; establishing the Workers' Compensation Adjustment
15 Fund; and making editorial changes.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Section 105 of the act of June 2, 1915 (P.L.736,
19 No.338), known as The Pennsylvania Workmen's Compensation Act,
20 reenacted and amended June 21, 1939 (P.L.520, No.281) and
21 amended March 29, 1972 (P.L.159, No.61), is amended to read:
22 Section 105. (a) The term "contractor," as used in article
23 two, section two hundred and three, and article three, section
1 three hundred and two (b), shall not include a contractor
2 engaged in an independent business, other than that of supplying
3 laborers or assistants, in which he serves persons other than
4 the employer in whose service the injury occurs, but shall
5 include a sub-contractor to whom a principal contractor has
6 sublet any part of the work which such principal contractor has
7 undertaken.
8 (b) For purposes of section two hundred and five and section
9 three hundred and three, a contractor shall be deemed the
10 employer of the sub-contractor's employes only if the sub-
11 contractor fails to secure the payment of compensation as
12 required by this act.
13 Section 2. Section 105.2 of the act, amended December 5,
14 1974 (P.L.782, No.263), is amended to read:
15 Section 105.2. (a) The terms "the maximum weekly
16 compensation payable" and "the maximum compensation payable per
17 week," as used in this act, mean sixty-six and two-thirds per
18 centum of "the Statewide average weekly wage" as defined in
19 section 105.1. Effective July 1, 1975, the terms "the maximum
20 weekly compensation payable" and "the maximum compensation
21 payable per week" as used in this act for injuries or death
22 after the effective date of this amendatory act shall mean the
23 Statewide average weekly wage as defined in section [105] 105.1.
24 (b) Effective January 1, 1986, the terms "the maximum weekly
25 compensation payable" and "the maximum compensation payable per
26 week," as used in this act for injuries or death after the
27 effective date of this subsection, shall mean one hundred fifty
28 per centum of the Statewide average weekly wage as defined in
29 section 105.1.
30 Section 3. Section 108(l) and (n) of the act, added October
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1 17, 1972 (P.L.930, No.223), are amended to read:
2 Section 108. The term "occupational disease," as used in
3 this act, shall mean only the following diseases.
4 * * *
5 (l) [Asbestosis and] Asbestos-related disease, including,
6 but not limited to, asbestosis, cancer [resulting from] of lung,
7 pleural mesothelioma, peritoneal mesothelioma, cancer of larynx,
8 cancer of the kidney, cancer of the digestive system (esophagus,
9 stomach, colon and rectum), cancer of tongue and sinuses
10 (buccopharyngeal cancer) and such other cancers as associated
11 with direct contact with, handling of, or exposure to, including
12 ingestion or inhalation of, the dust or fibers of asbestos or
13 asbestos compounds in any occupation involving such contact,
14 handling or exposure and heart disease caused by pulmonary
15 damage resulting from direct contact with, handling of, or
16 exposure to, including ingestion or inhalation of, the dust or
17 fibers of asbestos or asbestos compounds in any occupation
18 involving such contact, handling or exposure.
19 * * *
20 (n) All other diseases (1) to which the claimant is exposed
21 by reason of his employment, and (2) which are causally related
22 to the industry or occupation[, and (3) the incidence of which
23 is substantially greater in that industry or occupation than in
24 the general population]. For the purposes of this clause,
25 partial loss of hearing in one or both ears due to noise; and
26 the diseases silicosis, anthraco-silicosis and coal workers'
27 pneumoconiosis resulting from employment in and around a coal
28 mine, shall not be considered occupational diseases.
29 * * *
30 Section 4. Section 301(c)(2) and (d) of the act, amended
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1 December 6, 1972 (P.L.1627, No.337) and December 5, 1974
2 (P.L.782, No.263), are amended and the section is amended by
3 adding subsections to read:
4 Section 301. * * *
5 (c) * * *
6 (2) The terms "injury," "personal injury," and "injury
7 arising in the course of his employment," as used in this act,
8 shall include, unless the context clearly requires otherwise,
9 occupational disease as defined in section 108 of this act[:
10 Provided, That whenever occupational disease is the basis for
11 compensation, for disability or death under this act, it shall
12 apply only to disability or death resulting from such disease
13 and occurring within three hundred weeks after the last date of
14 employment in an occupation or industry to which he was exposed
15 to hazards of such disease: And provided further, That if the
16 employe's compensable disability has occurred within such
17 period, his subsequent death as a result of the disease shall
18 likewise be compensable]. The provisions of this paragraph (2)
19 shall apply only with respect to the disability or death of an
20 employe which results in whole or in part from the employe's
21 exposure to the hazard of occupational disease after June 30,
22 1973 in employment covered by The Pennsylvania Workmen's
23 Compensation Act. The employer liable for compensation provided
24 by section 305.1 or section 108, subsections (k), (l), (m), (o),
25 (p) or (q), shall be the employer in whose employment the
26 employe was last exposed for a period of not less than one year
27 to the hazard of the occupational disease claimed. In the event
28 the employe did not work in an exposure at least one year for
29 any employer during the three hundred week period prior to
30 disability or death, the employer liable for the compensation
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1 shall be that employer giving the longest period of employment
2 in which the employe was exposed to the hazards of the disease
3 claimed.
4 [(d) Compensation for silicosis, anthraco-silicosis, coal
5 worker's pneumoconiosis or asbestosis, shall be paid only when
6 it is shown that the employe has had an aggregate employment of
7 at least two years in the Commonwealth of Pennsylvania, during a
8 period of ten years next preceding the date of disability, in an
9 occupation having a silica, coal or asbestos hazard.]
10 * * *
11 (f) Notwithstanding any other provision of this act, every
12 employe disabled by asbestos-related disease on the effective
13 date of this subsection as a result of exposure to the hazard of
14 asbestos in employment within this Commonwealth covered by this
15 act, but barred from receiving compensation therefor because of
16 any of the time limitations prescribed by this act, shall
17 immediately be eligible to receive compensation in the amount of
18 seventy-five per centum of the maximum weekly compensation
19 payable on the effective date of this subsection. The
20 compensation of those entitled to benefits granted under this
21 subsection shall be paid by the Commonwealth. All persons
22 submitting claims hereunder must do so within one year after the
23 effective date of this subsection.
24 (g) Notwithstanding any other provisions of this act, any
25 person receiving compensation on the effective date of this
26 subsection for asbestosis or any other asbestos-related disease,
27 due to exposure to the hazard of asbestos on or before June 30,
28 1973, in employment covered by this act, shall have the
29 compensation rate adjusted to seventy-five per centum of the
30 maximum weekly compensation payable on the effective date of
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1 this subsection. Additional compensation provided by this
2 subsection shall be paid by the Commonwealth.
3 Section 5. Section 306(b) of the act, amended December 5,
4 1974 (P.L.782, No.263), is amended, subsection (c) is amended by
5 adding a clause, and the section is amended by adding
6 subsections to read:
7 Section 306. The following schedule of compensation is
8 hereby established:
9 * * *
10 (b) For disability partial in character (except the
11 particular cases mentioned in clause (c)) sixty-six and two-
12 thirds per centum of the difference between the wages of the
13 injured employe, as defined in section [three hundred and nine]
14 309(g), and the earning power of the employe thereafter; but
15 such compensation shall not be more than the maximum
16 compensation payable. This compensation shall be paid during the
17 period of such partial disability except as provided in clause
18 (e) of this section[, but for not more than five hundred weeks.
19 Should total disability be followed by partial disability, the
20 period of five hundred weeks shall not be reduced by the number
21 of weeks during which compensation was paid for total
22 disability]. The term "earning power," as used in this section,
23 shall in no case be less than the weekly amount which the
24 employe receives after the injury, and in those cases in which
25 the employe works fewer than five days per week for reasons not
26 connected with or arising out of the disability resulting from
27 the injury shall not be less than five times his actual daily
28 wage as fixed by the day, hour, or by the output of the employe;
29 and in no instance shall an employe receiving compensation under
30 this section receive more in compensation and wages combined
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1 than a fellow employe in employment similar to that in which the
2 injured employe was engaged at the time of the injury.
3 (c) For all disability resulting from permanent injuries of
4 the following classes, the compensation shall be exclusively as
5 follows:
6 * * *
7 (21.1) Compensation for permanent partial loss or loss of
8 use of the members or organs set forth in clauses (1) through
9 (21) shall be compensated in an amount determined by multiplying
10 the compensation for total loss or loss of use by the percentage
11 of loss or loss of use of the applicable members or organs.
12 * * *
13 (i) When a proximate cause of an injury is a violation of
14 any occupational safety and health standard as defined by the
15 Occupational Safety and Health Act of 1970 (Public Law 91-596,
16 29 U.S.C. § 651 et seq.), or any rule, regulation or order
17 issued pursuant thereto, then the compensation payable under
18 subsection (a), (b) and/or (c) of this section or under section
19 307 shall be increased by fifty per centum.
20 (j) For so long as an employe is receiving compensation
21 under this section, his employer shall additionally provide him
22 with the same fringe benefits he had at the time of the injury.
23 For purposes of this subsection, fringe benefits means health,
24 accident, eye, dental and/or prescription insurance or similar
25 benefit programs.
26 Section 6. Section 311 of the act, amended October 17, 1972
27 (P.L.930, No.223), is amended to read:
28 Section 311. (a) Unless the employer shall have knowledge
29 of the occurrence of the injury, or unless the employe or
30 someone in his behalf, or some of the dependents or someone in
19910H2181B2736 - 7 -
1 their behalf, shall give notice thereof to the employer within
2 twenty-one days after the injury, no compensation shall be due
3 until such notice be given, and, unless such notice be given
4 within one hundred and twenty days after the occurrence of the
5 injury, no compensation shall be allowed. However, in cases of
6 injury resulting from ionizing radiation, asbestos-related
7 disease or any other cause in which the nature of the injury or
8 its relationship to the employment is not known to the employe,
9 the time for giving notice shall not begin to run until the
10 employe knows, or by the exercise of reasonable diligence should
11 know, of the existence of the injury and its possible
12 relationship to his employment. Additionally, the time for
13 giving notice of a claim for loss of hearing shall not begin to
14 run until the employe has received an audiogram administered by
15 a licensed or certified audiologist or board-certified
16 otolaryngologist with an accompanying report thereon, indicating
17 the employe has suffered a compensable loss of hearing.
18 (b) The term "injury" in this section means, in cases of
19 occupational disease, disability resulting from occupational
20 disease.
21 Section 7. Section 314 of the act, amended February 28, 1956
22 (1955 P.L.1120, No.356), is amended to read:
23 Section 314. (a) At any time after an injury the employe,
24 if so requested by his employer, must submit himself for
25 examination, at some reasonable time and place, to a physician
26 or physicians legally authorized to practice under the laws of
27 such place, who shall be selected and paid by the employer.
28 Notwithstanding the foregoing, if a claim petition or other
29 petition by the employe is pending, the employer may not request
30 the employe to undergo an examination by a physician more than
19910H2181B2736 - 8 -
1 forty-five days after the petition was filed.
2 (b) If the employe shall refuse upon the request of the
3 employer, to submit to the examination by the physician or
4 physicians selected by the employer, the board may, upon
5 petition of the employer, order the employe to submit to an
6 examination at a time and place set by it, and by the physician
7 or physicians selected and paid by the employer, or by a
8 physician or physicians designated by it and paid by the
9 employer. The board may at any time after such first
10 examination, upon petition of the employer, order the employe to
11 submit himself to such further examinations as it shall deem
12 reasonable and necessary, at such times and places and by such
13 physicians as it may designate; and in such case, the employer
14 shall pay the fees and expenses of the examining physician or
15 physicians, and the reasonable traveling expenses and loss of
16 wages incurred by the employe in order to submit himself to such
17 examination. The refusal or neglect, without reasonable cause or
18 excuse, of the employe to submit to such examination ordered by
19 the board, either before or after an agreement or award, shall
20 deprive him of the right to compensation, under this article,
21 during the continuance of such refusal or neglect, and the
22 period of such neglect or refusal shall be deducted from the
23 period during which compensation would otherwise be payable.
24 (c) The employe shall be entitled to have a physician or
25 physicians of his own selection, to be paid by him, participate
26 in any examination requested by his employer or ordered by the
27 board.
28 Section 8. Section 315 of the act, amended April 4, 1974
29 (P.L.239, No.56) and December 5, 1974 (P.L.782, No.263), is
30 amended to read:
19910H2181B2736 - 9 -
1 Section 315. (a) In cases of personal injury all claims for
2 compensation shall be forever barred, unless, within three years
3 after the injury, the parties shall have agreed upon the
4 compensation payable under this article; or unless within three
5 years after the injury, one of the parties shall have filed a
6 petition as provided in article four hereof. In cases of death
7 all claims for compensation shall be forever barred, unless
8 within three years after the death, the parties shall have
9 agreed upon the compensation under this article; or unless,
10 within three years after the death, one of the parties shall
11 have filed a petition as provided in article four hereof. Where,
12 however, in the case of any person receiving benefits pursuant
13 to the act of June 28, 1935 (P.L.477, No.193), referred to as
14 the Heart and Lung Act, the [two-year] three-year period in
15 which parties must agree upon the compensation or file a
16 petition for compensation in cases of personal injury or in
17 death, shall not begin to run until the expiration of the
18 receipt of benefits pursuant to the Heart and Lung Act. Where,
19 however, payments of compensation have been made in any case,
20 said limitations shall not take effect until the expiration of
21 three years from the time of the making of the most recent
22 payment prior to date of filing such petition: Provided, That
23 any payment made under an established plan or policy of
24 insurance for the payment of benefits on account of non-
25 occupational illness or injury and which payment is identified
26 as not being workmen's compensation shall not be considered to
27 be payment in lieu of workmen's compensation, and such payment
28 shall not toll the running of the Statute of Limitations.
29 However, in cases of injury resulting from ionizing radiation or
30 asbestos-related disease in which the nature of the injury or
19910H2181B2736 - 10 -
1 its relationship to the employment is not known to the employe,
2 the time for filing a claim shall not begin to run until the
3 employe knows, or by the exercise of reasonable diligence should
4 know, of the existence of the injury and its possible
5 relationship to his employment. Additionally, the time for
6 filing a claim for loss of hearing shall not begin to run until
7 the employe has received an audiogram, administered by a
8 licensed or certified audiologist or board-certified
9 otolaryngologist, with an accompanying report thereon,
10 indicating the employe has suffered a compensable loss of
11 hearing.
12 (b) The term "injury" in this section means, in cases of
13 occupational disease, disability resulting from occupational
14 disease.
15 Section 9. Section 319 of the act, amended March 29, 1972
16 (P.L.159, No.61), is amended to read:
17 Section 319. (a) Where the compensable injury is caused in
18 whole or in part by the act or omission of a third party, the
19 employer shall be subrogated to the right of the employe, his
20 personal representative, his estate or his dependents, against
21 such third party to the extent of the compensation payable under
22 this article by the employer; reasonable attorney's fees and
23 other proper disbursements incurred in obtaining a recovery or
24 in effecting a compromise settlement shall be prorated between
25 the employer and employe, his personal representative, his
26 estate or his dependents. The employer shall pay that proportion
27 of the attorney's fees and other proper disbursements that the
28 amount of compensation paid or payable at the time of recovery
29 or settlement bears to the total recovery or settlement. Any
30 recovery against such third person in excess of the compensation
19910H2181B2736 - 11 -
1 theretofore paid by the employer shall be paid forthwith to the
2 employe, his personal representative, his estate or his
3 dependents, and shall be treated as an advance payment by the
4 employer on account of any future instalments of compensation.
5 (b) Where an employe has received payments for the
6 disability or medical expense resulting from an injury in the
7 course of his employment paid by the employer [or], an insurance
8 company, a labor organization, a health and welfare fund or
9 other similar such beneficial entity, on the basis that the
10 injury and disability were not compensable under this act in the
11 event of an agreement or award for that injury the employer
12 [or], insurance company, labor organization, health and welfare
13 fund or other similar such beneficial entity who made the
14 payments shall be subrogated out of the agreement or award to
15 the amount so paid, if the right to subrogation is agreed to by
16 the parties or is established at the time of hearing before the
17 referee or the board.
18 Section 10. Section 406.1 of the act, added February 8, 1972
19 (P.L.25, No.12), is amended to read:
20 Section 406.1. (a) The employer and insurer shall promptly
21 investigate each injury reported or known to the employer and
22 shall proceed promptly to commence the payment of compensation
23 due either pursuant to an agreement upon the compensation
24 payable or a notice of compensation payable as provided in
25 section 407, on forms prescribed by the department and furnished
26 by the insurer. The first installment of compensation shall be
27 paid not later than the twenty-first day after the employer has
28 notice or knowledge of the employe's disability. Interest shall
29 accrue on all due and unpaid compensation at the [rate] greater
30 of ten per centum per annum[.] or at two per centum per annum
19910H2181B2736 - 12 -
1 plus the interest rate determined annually by the Secretary of
2 Revenue pursuant to section 806 of the act of April 9, 1929
3 (P.L.343, No.176), known as "The Fiscal Code." Any payment of
4 compensation prior or subsequent to an agreement or notice of
5 compensation payable or greater in amount than provided therein
6 shall, to the extent of the amount of such payment or payments,
7 discharge the liability of the employer with respect to such
8 case.
9 (b) Payments of compensation pursuant to an agreement or
10 notice of compensation payable may be suspended, terminated,
11 reduced or otherwise modified by petition and subject to right
12 of hearing as provided in section 413.
13 (c) If the insurer controverts the right to compensation it
14 shall [promptly], within twenty days after the employer has
15 notice or knowledge of the employe's injury, notify the employe
16 or his dependent, on a form prescribed by the department,
17 stating the grounds upon which the right to compensation is
18 controverted and shall forthwith furnish a copy or copies to the
19 department.
20 (d) Repeated or unreasonable failures by an insurer to
21 comply with the time limitations herein shall constitute cause
22 for the Insurance Commissioner to revoke its license to transact
23 workmen's compensation insurance business in this Commonwealth.
24 Section 11. Section 410 of the act, amended March 29, 1972
25 (P.L.159, No.61), is amended to read:
26 Section 410. (a) If, after any injury, the employer or his
27 insurer and the employe or his dependent, concerned in any
28 injury, shall fail to agree upon the facts thereof or the
29 compensation due under this act, the employe or his dependents
30 may present a claim petition for compensation to the department.
19910H2181B2736 - 13 -
1 (b) If the employe has insurance coverage for nonwork-
2 related disability or medical expense, the nonwork-related
3 insurance carrier shall promptly make such disability or medical
4 payments to or on account of the employe and, in the event of an
5 agreement or award for the injury, the insurance company which
6 made the payment shall be subrogated out of the agreement or
7 award to the extent of the amount so paid.
8 (c) In case any claimant shall die before the final
9 adjudication of his claim, the amount of compensation due such
10 claimant to the date of death shall be paid to the dependents
11 entitled to compensation, or, if there be no dependents, then to
12 the estate of the decedent.
13 (d) Whenever any claim for compensation is presented and the
14 only issue involved is the liability as between the defendant or
15 the carrier or two or more defendants or carriers, the referee
16 of the department to whom the claim in such case is presented
17 shall forthwith order payments to be immediately made by the
18 defendants or the carriers in said case. After the department's
19 referee or the board on appeal, render a final decision, the
20 payments made by the defendant or carrier not liable in the case
21 shall be awarded or assessed against the defendant or carrier
22 liable in the case, as costs in the proceedings, in favor of the
23 defendant or carrier not liable in the case.
24 Section 12. Section 416 of the act, amended February 8, 1972
25 (P.L.25, No.12), is amended to read:
26 Section 416. (a) Within fifteen days after a copy of any
27 claim petition or other petition has been served upon an adverse
28 party, he may file with the department or its referee an answer
29 in the form prescribed by the department.
30 (b) Every fact alleged in a claim petition not specifically
19910H2181B2736 - 14 -
1 denied by an answer so filed by an adverse party shall be deemed
2 to be admitted by him. But the failure of any party or of all of
3 them to deny a fact alleged in any other petition shall not
4 preclude the referee before whom the petition is heard from
5 requiring, of his own motion, proof of such fact. If a party
6 fails to file an answer and/or fails to appear in person or by
7 counsel at the hearing without adequate excuse, the referee
8 hearing the petition shall decide the matter on the basis of the
9 petition and evidence presented.
10 (c) All claim petitions shall contain a request for
11 preliminary relief, and the referee shall hold a hearing thereon
12 within sixty days. The referee shall grant such preliminary
13 relief if the claimant: (1) makes a prima facie case that he is
14 entitled to compensation, and (2) establishes that without such
15 preliminary relief, he lacks sufficient financial resources to
16 pay for his, and his dependent's, housing, food and clothing
17 until the time a final decision on the claim petition could be
18 expected to be rendered. For purposes of the hearing on
19 preliminary relief, a certificate by any qualified physician as
20 to the history, examination, treatment, diagnosis and cause of
21 condition, and affidavits by other witnesses, shall be
22 sufficient evidence for establishing facts for a prima facie
23 case. The preliminary relief shall be in the amount the claimant
24 would be entitled to by his prima facie case. If payments of
25 compensation are made pursuant to the grant of preliminary
26 relief, and upon the final decision on the claim petition it is
27 determined that such compensation was not, in fact, payable, the
28 employer or insurer which has made suit payments shall be
29 reimbursed therefor from the Workmen's Compensation Supersedeas
30 Fund, in accordance with the procedures in section 443.
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1 Section 13. Section 422 of the act, amended February 8, 1972
2 (P.L.25, No.12) and March 29, 1972 (P.L.159, No.61), is amended
3 to read:
4 Section 422. (a) Neither the board nor any of its members
5 nor any referee shall be bound by the common law or statutory
6 rules of evidence in conducting any hearing or investigation,
7 but all findings of fact shall be based upon sufficient
8 competent evidence to justify same.
9 (b) If any party or witness resides outside of the
10 Commonwealth, or through illness or other cause is unable to
11 testify before the board or a referee, his or her testimony or
12 deposition may be taken, within or without this Commonwealth, in
13 such manner and in such form as the department may, by special
14 order or general rule, prescribe. The records kept by a hospital
15 of the medical or surgical treatment given to an employe in such
16 hospital shall be admissible as evidence of the medical and
17 surgical matters stated therein.
18 (c) Where any claim for compensation at issue before a
19 referee involves [twenty-five] seventy-five weeks or less of
20 disability, either the employe or the employer may submit a
21 certificate by any qualified physician as to the history,
22 examination, treatment, diagnosis and cause of the condition,
23 and sworn reports by other witnesses as to any other facts and
24 such statements shall be admissible as evidence of medical and
25 surgical or other matters therein stated and findings of fact
26 may be based upon such certificates or such reports.
27 (d) Where an employer shall have furnished surgical and
28 medical services or hospitalization in accordance with the
29 provisions of subsection (f) of section 306, or where the
30 employe has himself procured them, the employer or employe
19910H2181B2736 - 16 -
1 shall, upon request, in any pending proceeding, be furnished
2 with, or have made available, a true and complete record of the
3 medical and surgical services and hospital treatment, including
4 X rays, laboratory tests, and all other medical and surgical
5 data in the possession or under the control of the party
6 requested to furnish or make available such data.
7 (e) The department may adopt rules and regulations governing
8 the conduct of all hearings held pursuant to any provisions of
9 this act, and hearings shall be conducted in accordance
10 therewith, and in such manner as best to ascertain the
11 substantial rights of the parties.
12 Section 14. Section 440 of the act, added February 8, 1972
13 (P.L.25, No.12), is amended to read:
14 Section 440. (a) In any contested case where the insurer
15 has contested liability in whole or in part, the employe or his
16 dependent, as the case may be, in whose favor the matter at
17 issue has been finally determined shall be awarded, in addition
18 to the award for compensation, a reasonable sum for costs
19 incurred for attorney's fee, witnesses, necessary medical
20 examination, and the value of unreimbursed lost time to attend
21 the proceedings: Provided, [That cost for attorney fees may be
22 excluded when a reasonable basis for the contest has been
23 established: And provided further,] That if the insurer has paid
24 or tendered payment of compensation and the controversy relates
25 to the amount of compensation due, costs for attorney's fee
26 shall be based only on the difference between the final award of
27 compensation and the compensation paid or tendered by the
28 insurer.
29 (b) In contested cases involving petitions to terminate,
30 reinstate, increase, reduce or otherwise modify compensation
19910H2181B2736 - 17 -
1 awards, agreements or other payment arrangements or to set aside
2 final receipts, where the contested issue, in whole or part, is
3 resolved in favor of the claimant, the claimant shall be
4 entitled to an award of reasonable costs as hereinabove set
5 forth.
6 Section 15. The act is amended by adding a section to read:
7 Section 505. Any employer who discharges, demotes, or in any
8 other manner discriminates against any employe, or who threatens
9 to do any of the aforementioned, because such employe has
10 exercised, or made known his intention to exercise, any of his
11 rights under this act, shall be deemed to have violated this act
12 and said employer shall be penalized in an amount which is the
13 greater of two thousand dollars ($2,000) per violation or the
14 amount as determined by section 435(d). In addition, the
15 employer shall be liable to the employe in an action at law for
16 special and general damages caused by such violations.
17 Section 16. The act is amended by adding an article to read:
18 ARTICLE VII
19 WORKERS' COMPENSATION
20 ADJUSTMENT FUND
21 Section 701. As used in this article, the following words
22 and phrases shall have the meanings given to them in this
23 section unless the context clearly indicates otherwise:
24 "Fund." The Workers' Compensation Adjustment Fund.
25 "Workers' Compensation Insurance." Includes insurance
26 written to cover liability under this act and the act of June
27 21, 1939 (P.L.566, No.284), known as "The Pennsylvania
28 Occupational Disease Act."
29 Section 702. (a) There is hereby established in the State
30 Treasury a separate account to be known as the Workers'
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1 Compensation Adjustment Fund. This fund shall be administered by
2 the Department of Labor and Industry.
3 (b) The moneys in the fund shall be used for cost-of-living
4 adjustments in workers' compensation payments, as the General
5 Assembly may by law provide.
6 Section 703. (a) There is hereby imposed a tax of one per
7 centum upon all gross receipts, including investment income,
8 relating to workers' compensation received by any insurer
9 licensed in this Commonwealth to engage in the business of
10 workers' compensation insurance.
11 (b) This tax shall be collected by the Department of Revenue
12 on an annual basis and paid into the fund.
13 Section 17. This act shall take effect January 1, 1992.
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