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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | May 13, 2024 09:53 AM |
|---|---|
| From: | Senator Tracy Pennycuick and Sen. Frank A. Farry |
| To: | All Senate members |
| Subject: | Direct Deposit for Workers’ Compensation Payments |
| In the near future, we will introduce legislation to allow workers’ compensation claimants to request payment of benefits by direct deposit or employers to require payment of benefits by direct deposit. According to the American Payroll Association, more than 95% of workers receive their pay by direct deposit. Unfortunately, in the workers compensation system, many payments are still being made by paper check, leaving these payments vulnerable to delays, loss, or misplacement. This bill will modernize the Workers Compensation Act by establishing a regulatory framework to govern payment of benefits by direct deposit. It will allow individuals entitled to compensation to request funds be deposited to an account of their choosing. It will also allow insurers to no longer offer paper checks as a payment option so long as they provide the individual entitled to compensation the option of direct deposit or a payroll account card. These reforms were unanimously recommended by the Workers’ Compensation Advisory Council. Please join us in helping injured workers get their benefits in a faster, more convenient way that will also benefit insurers by reducing processing time and mailing costs. |
Introduced as SB1232