Trial Engrossment of Amendment A00275 to House Bill 0760 P.N. 0709, Regular Session 2023-2024

A00275

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

760

Session of

2023

INTRODUCED BY PISCIOTTANO, VENKAT, HILL-EVANS, ROZZI, MADDEN,

SANCHEZ, McANDREW, BRENNAN, MARSHALL, GERGELY, SCHLOSSBERG,

HADDOCK, DELLOSO, KHAN, PARKER AND CIRESI, MARCH 30, 2023

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 30, 2023

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 liability and

compensation, further providing for compensation payable in

periodical installments.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 308 of the act of June 2, 1915 (P.L.736,

No.338), known as the Workers' Compensation Act, is amended to

read:

Section 308. (a) Except as hereinafter provided, all

compensation payable under this article shall be payable in

periodical installments, as the wages of the employe were

payable before the injury.

(b) At the request of the employe, person entitled to

compensation under section 307, employer or insurer,

compensation shall be made by electronic fund transfer to the

account of the person entitled to compensation or to a debit

account provided to the person.

(b) Installments of compensation payable under this article

must be paid to the person entitled to compensation by direct

deposit, subject to the following:

(1) The insurer or self-insured employer permits payment of

compensation by direct deposit. The following shall apply:

(i) After the effective date of this subsection, an insurer

or self-insured employer may permit payment of compensation by

direct deposit. If the insurer or self-insured employer permits

payment by direct deposit, the option shall be available to all

persons entitled to compensation from the insurer or self-

insured employer.

(ii) No later than one year after the effective date of this

subsection, all insurers and self-insured employers shall permit

payment of compensation by direct deposit.

(2) The insurer or self-insured employer shall notify the

persons entitled to compensation of the option to receive

compensation by direct deposit. Notification shall be sent by

first class mail and include the direct deposit authorization

form under subsection (c). Notification shall be sent in

accordance with the following:

(i) Immediately upon the availability of direct deposit by

the insurer or self-insured employer.

(ii) At least once with the first check that is mailed out

immediately following the notification sent under subparagraph

(i).

(3) A person entitled to compensation or their legal

guardian who requests to receive compensation via direct deposit

shall submit an accurate and valid direct deposit authorization

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form to the insurer or self-insured employer. The direct deposit

authorization form may be submitted electronically if the

insurer or self-insured employer has agreed to accept the form

electronically. The insurer or self-insured employer may not be

required to pay compensation by direct deposit unless the person

entitled to compensation or their legal guardian has submitted a

valid authorization form.

(4) The person entitled to compensation or their legal

guardian shall have the right to choose the deposit account to

which payments of compensation are made and may request to

change the deposit account designated to receive compensation or

discontinue direct deposit by submitting a revised direct

deposit authorization form to the insurer or self-insured

employer. The person entitled to compensation or their legal

guardian shall have control and signatory access to the chosen

depository account.

(5) Payments of compensation may not be split between

multiple payment methods, and payments of compensation made by

direct deposit may not be split between multiple deposit

accounts.

(6) A request to initiate direct deposit, change deposit

accounts or discontinue direct deposit shall be implemented

within 45 days of receipt, provided that the direct deposit

authorization form is valid.

(7) Lump sum settlement payments made as a result of a

compromise and release agreement shall be made by check unless

the insurer or self-insured employer agrees to make payment by

direct deposit.

direct deposit authorization form for use by all insurers and

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self-insured employers under this section. The form shall

include, at a minimum, the following information:

(1) The name, phone number, mailing address and email

address of the person entitled to compensation.

(2) The workers' compensation claim number.

(3) Whether the person entitled to compensation or their

legal guardian is requesting to initiate direct deposit, change

deposit accounts or discontinue direct deposit.

(4) The name and address of the financial institution and

the account and routing numbers to which compensation shall be

sent.

(5) Acknowledgment that failure to notify the insurer or

self-insured employer of any change in financial institution or

account may delay receipt of compensation or settlement

proceeds.

(6) Acknowledgment that the person entitled to compensation

or their legal guardian shall notify the insurer or self-insured

employer of changes in circumstance that affect entitlement to

compensation payable under this article.

(d) As used in this section, the following words and phrases

shall have the meanings given to them in this subsection unless

the context clearly indicates otherwise:

"Direct deposit" shall mean a credit to a deposit account in

a financial institution made by electronic fund transfer.

"Electronic fund transfer" shall mean as the term is defined

in 15 U.S.C. § 1693a (relating to definitions).

"Person entitled to compensation" shall mean an employe

entitled to compensation under this article or a person entitled

to compensation under section 307.

"Valid authorization form" shall mean a completed direct

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deposit authorization form, as prescribed by the department

under subsection (c), which contains the information necessary

for an insurer or self-insured employer to initiate direct

deposit, change deposit accounts or discontinue direct deposit.

Section 2. This act shall apply to claims for compensation

filed installments of compensation paid on or after the

effective date of this section.

Section 3. This act shall take effect in 60 days.

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