PRINTER'S NO. 2839
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1982
Session of
2017
INTRODUCED BY GAINEY, THOMAS, PASHINSKI, READSHAW, KIRKLAND,
SCHWEYER, DEAN AND MACKENZIE, DECEMBER 21, 2017
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, DECEMBER 21, 2017
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 damages by action
at law, further providing for recovery; in liability and
compensation, further providing for schedule of compensation,
repealing provisions relating to computation of benefits and
providing for computation of benefits; in procedure, further
providing for compromise and release, for collective
bargaining agreement and for workers' compensation insurance;
in additional coverages, further providing for irrebuttable
presumption; in Self-Insurance Guaranty Fund, further
providing for definitions and for prefund account; and, in
Uninsured Employers Guaranty Fund, further providing for
definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 204(a) and 306(g) introductory
paragraph, (4), (5) and (6) and (h) of the act of June 2, 1915
(P.L.736, No.338), known as the Workers' Compensation Act, are
amended to read:
Section 204. (a) No agreement, composition, or release of
damages made before the date of any injury shall be valid or
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shall bar a claim for damages resulting therefrom; and any such
agreement is declared to be against the public policy of this
Commonwealth. The receipt of benefits from any association,
society, or fund shall not bar the recovery of damages by action
at law, nor the recovery of compensation under article three
hereof; and any release executed in consideration of such
benefits shall be void: Provided, however, That if the employe
receives unemployment compensation benefits, such amount or
amounts so received shall be credited as against the amount of
the award made under the provisions of sections 108 and 306,
except for benefits payable under section 306(c) or [307] 307.1.
Fifty per centum of the benefits commonly characterized as "old
age" benefits under the Social Security Act (49 Stat. 620, 42
U.S.C. § 301 et seq.) shall also be credited against the amount
of the payments made under sections 108 and 306, except for
benefits payable under section 306(c): Provided, however, That
the Social Security offset shall not apply if old age Social
Security benefits were received prior to the compensable injury.
The severance benefits paid by the employer directly liable for
the payment of compensation and the benefits from a pension plan
to the extent funded by the employer directly liable for the
payment of compensation which are received by an employe shall
also be credited against the amount of the award made under
sections 108 and 306, except for benefits payable under section
306(c). The employe shall provide the insurer with proper
authorization to secure the amount which the employe is
receiving under the Social Security Act.
* * *
Section 306. The following schedule of compensation is
hereby established:
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* * *
(g) Should the employe die from some other cause than the
injury, payments of compensation to which the deceased would
have been entitled to under section 306(c)(1) to (25) shall be
paid to the following persons who at the time of the death of
the deceased were dependents [within the definition of clause 7
of section 307] as defined in section 307.1 and in the following
order and amounts:
* * *
(4) If there is no surviving widow or widower and no
surviving child or children of the deceased then to that
dependent or those dependents named in [clause 5 of section 307]
section 307.1(a)(5).
(5) If there are no persons eligible as named above or in
those classes then to those persons who are named in [clause 6
of section 307] section 307.1(a)(6).
(6) When such compensation is paid to dependents above
named, compensation shall not cease even though the person
receiving the payments ceases to be a dependent as defined in
section [307] 307.1.
* * *
(h) Any person receiving compensation under section 306(a)
or (c)(23) or [307] 307.1 as a result of an injury which
occurred prior to August 31, 1993, shall, beginning January 1,
2007, receive a minimum amount of one hundred dollars ($100) per
week. The additional compensation shall be paid by the self-
insured employer or insurance carrier making payment and shall
be reimbursed in advance by the Commonwealth on a quarterly
basis as provided in rules and regulations of the department.
The payment of additional compensation shall be made by the
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carrier or self-insured employer only during those fiscal years
for which appropriations are made to cover reimbursement.
Section 2. Section 307 of the act is repealed:
[Section 307. In case of death, compensation shall be
computed on the following basis, and distributed to the
following persons: Provided, That in no case shall the wages of
the deceased be taken to be less than fifty per centum of the
Statewide average weekly wage for purposes of this section:
(1) If there be no widow nor widower entitled to
compensation, compensation shall be paid to the guardian of the
child or children, or, if there be no guardian, to such other
persons as may be designated by the board as hereinafter
provided as follows:
(a) If there be one child, thirty-two per centum of wages of
deceased, but not in excess of the Statewide average weekly
wage.
(b) If there be two children, forty-two per centum of wages
of deceased, but not in excess of the Statewide average weekly
wage.
(c) If there be three children, fifty-two per centum of
wages of deceased, but not in excess of the Statewide average
weekly wage.
(d) If there be four children, sixty-two per centum of wages
of deceased, but not in excess of the Statewide average weekly
wage.
(e) If there be five children, sixty-four per centum of
wages of deceased, but not in excess of the Statewide average
weekly wage.
(f) If there be six or more children, sixty-six and two-
thirds per centum of wages of deceased, but not in excess of the
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Statewide average weekly wage.
The amounts payable under (b), (c), (d), (e) and (f) of clause
(1) of this section shall be divided equally among the children
if those children are with different guardians.
(2) To the widow or widower, if there be no children, fifty-
one per centum of wages, but not in excess of the Statewide
average weekly wage.
(3) To the widow or widower who is the guardian of all of
the deceased's children, payment shall be as follows:
(a) If there is one child, sixty per centum of wages, but
not in excess of the Statewide average weekly wage.
(b) If there are two or more children, sixty-six and two-
thirds per centum of wages, but not in excess of the Statewide
average weekly wage.
(4) If there is a widow or widower who is not the guardian
of all of the deceased's children, the widow or widower and to
the respective guardians as follows:
(a) If there is one child, a total of sixty per centum of
wages, but not in excess of the Statewide average weekly wage,
to be divided equally between the widow or widower and the
child.
(b) If there are two or more children, a total of sixty-six
and two-thirds per centum of wages, but not in excess of the
Statewide average weekly wage, to be divided as follows: thirty-
three and one-third per centum to the widow or widower and the
remainder to be divided equally among the children.
(5) If there be neither widow, widower, nor children
entitled to compensation, then to the father or mother, if
dependent to any extent upon the employe at the time of the
injury, thirty-two per centum of wages but not in excess of the
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Statewide average weekly wage: Provided, however, That in the
case of a minor child who has been contributing to his parents,
the dependency of said parents shall be presumed: And provided
further, That if the father or mother was totally dependent upon
the deceased employe at the time of the injury, the compensation
payable to such father or mother shall be fifty-two per centum
of wages, but not in excess of the Statewide average weekly
wage.
(6) If there be neither widow, widower, children, nor
dependent parent, entitled to compensation, then to the brothers
and sisters, if actually dependent upon the decedent for support
at the time of his death, twenty-two per centum of wages for one
brother or sister, and five per centum additional for each
additional brother or sister, with a maximum of thirty-two per
centum of wages of deceased, but not in excess of the Statewide
average wage, such compensation to be paid to their guardian, or
if there be no guardian, to such other person as may be
designated by the board, as hereinafter provided.
(7) Whether or not there be dependents as aforesaid, the
reasonable expense of burial, not exceeding three thousand
dollars ($3,000), which shall be paid by the employer or insurer
directly to the undertaker (without deduction of any amounts
theretofore paid for compensation or for medical expenses).
Compensation shall be payable under this section to or on
account of any child, brother, or sister, only if and while such
child, brother, or sister, is under the age of eighteen unless
such child, brother or sister is dependent because of disability
when compensation shall continue or be paid during such
disability of a child, brother or sister over eighteen years of
age or unless such child is enrolled as a full-time student in
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any accredited educational institution when compensation shall
continue until such student becomes twenty-three. No
compensation shall be payable under this section to a widow,
unless she was living with her deceased husband at the time of
his death, or was then actually dependent upon him and receiving
from him a substantial portion of her support. No compensation
shall be payable under this section to a widower, unless he be
incapable of self-support at the time of his wife's death and be
at such time dependent upon her for support. If members of
decedent's household at the time of his death, the terms "child"
and "children" shall include step-children, adopted children and
children to whom he stood in loco parentis, and children of the
deceased and shall include posthumous children. Should any
dependent of a deceased employe die or remarry, or should the
widower become capable of self-support, the right of such
dependent or widower to compensation under this section shall
cease except that if a widow remarries, she shall receive one
hundred four weeks compensation at a rate computed in accordance
with clause (2) in a lump sum after which compensation shall
cease: Provided, however, That if, upon investigation and
hearing, it shall be ascertained that the widow or widower is
living with a man or woman, as the case may be, in meretricious
relationship and not married, or the widow living a life of
prostitution, the board may order the termination of
compensation payable to such widow or widower. If the
compensation payable under this section to any person shall, for
any cause, cease, the compensation to the remaining persons
entitled thereunder shall thereafter be the same as would have
been payable to them had they been the only persons entitled to
compensation at the time of the death of the deceased.
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The board may, if the best interest of a child or children
shall so require, at any time order and direct the compensation
payable to a child or children, or to a widow or widower on
account of any child or children, to be paid to the guardian of
such child or children, or, if there be no guardian, to such
other person as the board as hereinafter provided may direct. If
there be no guardian or committee of any minor, dependent, or
insane employe, or dependent, on whose account compensation is
payable, the amount payable on account of such minor, dependent,
or insane employe, or dependent may be paid to any surviving
parent, or such other person as the board may order and direct,
and the board may require any person, other than a guardian or
committee, to whom it has directed compensation for a minor,
dependent, or insane employe, or dependent to be paid, to
render, as and when it shall so order, accounts of the receipts
and disbursements of such person, and to file with it a
satisfactory bond in a sum sufficient to secure the proper
application of the moneys received by such person.]
Section 3. The act is amended by adding a section to read:
Section 307.1. (a) Subject to subsections (b) and (c), in
case of death, compensation shall be computed on the following
basis and distributed as follows:
(1) If there is no widow or widower entitled to
compensation, the following shall apply:
(i) Compensation shall be paid to the guardian of the child
or children or, if there is no guardian, to other persons as may
be designated by the board as follows:
(A) If there is one child, thirty-two per centum of wages of
the deceased.
(B) If there are two children, forty-two per centum of wages
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of the deceased.
(C) If there are three children, fifty-two per centum of
wages of the deceased.
(D) If there are four children, sixty-two per centum of
wages of the deceased.
(E) If there are five children, sixty-four per centum of
wages of the deceased.
(F) If there are six or more children, sixty-six and two-
thirds per centum of wages of the deceased.
(ii) The amounts payable under subparagraph (i)(B), (C),
(D), (E) and (F) shall be divided equally among the children if
those children are with different guardians.
(2) If there are no children, fifty-one per centum of wages
of the deceased shall be paid to the widow or widower.
(3) Compensation shall be paid to the widow or widower who
is the guardian of all of the deceased's children as follows:
(i) If there is one child, sixty per centum of wages.
(ii) If there are two or more children, sixty-six and two-
thirds per centum of wages.
(4) If there is a widow or widower who is not the guardian
of all of the deceased's children, compensation shall be paid to
the widow or widower and to the respective guardians as follows:
(i) If there is one child, a total of sixty per centum of
wages, to be divided equally between the widow or widower and
the child.
(ii) If there are two or more children, a total of sixty-six
and two-thirds per centum of wages, to be divided as follows:
(A) thirty-three and one-third per centum to the widow or
widower; and
(B) the remainder to be divided equally among the children.
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(5) If there is not a widow, widower or child entitled to
compensation, compensation shall be paid to the father or
mother, if dependent to any extent upon the employe at the time
of the injury, in the amount of thirty-two per centum of wages,
subject to the following:
(i) In the case of a minor child who has been contributing
to the minor child's parents, the dependency of the parents
shall be presumed.
(ii) If the father or mother was totally dependent upon the
deceased employe at the time of the injury, the compensation
payable to the father or mother shall be fifty-two per centum of
wages.
(6) If there is not a widow, widower, child or dependent
parent entitled to compensation, compensation shall be paid to
the brothers and sisters, if actually dependent upon the
decedent for support at the time of the decedent's death, in the
amount of twenty-two per centum of wages for one brother or
sister and five per centum additional for each additional
brother or sister, with a maximum of thirty-two per centum of
wages of the deceased, with the compensation to be paid to their
guardian or, if there is no guardian, to other persons as may be
designated by the board, as further provided in this section.
(7) Whether or not there are dependents as described in
paragraph (5) or (6), the reasonable expense of burial, not
exceeding three thousand dollars ($3,000), which shall be paid
by the employer or insurer directly to the undertaker without
deduction of any amount paid for compensation under this section
or for medical expenses.
(b) In no case shall the wages of the deceased be taken to
be less than fifty per centum of the Statewide average weekly
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wage for purposes of this section.
(c) Compensation under this section may not be paid in
excess of the Statewide average weekly wage.
(d) The following shall also apply regarding compensation
under this section:
(1) Compensation shall be payable under this section to or
on account of a child, brother or sister, only if the child,
brother or sister is under the age of eighteen years unless:
(i) the child, brother or sister is dependent because of
disability, in which case compensation shall continue or be paid
during the disability of the child, brother or sister who is
over eighteen years of age; or
(ii) the child is enrolled as a full-time student in an
accredited educational institution, in which case compensation
shall continue until the student reaches twenty-three years of
age.
(2) No compensation shall be payable under this section to a
widow or widower unless that individual was living with that
individual's deceased spouse at the time of the spouse's death
or was then actually dependent upon the spouse and receiving
from the spouse a substantial portion of support.
(3) No compensation shall be payable under this section to a
widow or widower, unless that individual is incapable of self-
support at the time of the death of that individual's spouse and
at the time was dependent upon the spouse for support.
(4) If members of the decedent's household at the time of
that individual's death, the terms "child" and "children" shall
include step-children, adopted children and children to whom
that individual stood in loco parentis. Children of the deceased
shall include posthumous children.
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(5) Except as provided in paragraph (6), if a dependent of a
deceased employe dies or remarries, or if the widow or widower
becomes capable of self-support, the right of the dependent,
widow or widower to compensation under this section shall cease.
(6) Subject to paragraph (7), if a widow or widower
remarries, that individual shall receive one hundred four weeks
compensation at a rate computed in accordance with paragraph (2)
in a lump sum after which compensation shall cease.
(7) If a widow or widower of a first responder remarries,
compensation under this section for that individual shall not
cease solely as the result of the remarriage. As used in this
paragraph, the term "first responder" shall mean a law
enforcement officer, a firefighter, rescue personnel or another
individual who provides emergency response, first aid or other
medically related assistance either in the course of the
individual's occupational duties or as a volunteer.
(8) If the compensation payable under this section to any
person shall cease for any cause, the compensation to the
remaining persons entitled under this section shall be the same
as would have been payable to them had they been the only
persons entitled to compensation at the time of the death of the
deceased.
(e) If the best interest of a child or children shall so
require, the board may at any time order and direct the
compensation payable to a child or children, or to a widow or
widower on account of a child or children, to be paid to the
guardian of the child or children, or, if there is no guardian,
to other persons as the board may direct, subject to the
following:
(1) If there is no guardian or committee of a minor, a
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dependent or an incapacitated employe or dependent on whose
account compensation is payable, the amount payable on account
of the minor, dependent or incapacitated employe or dependent
may be paid to a surviving parent or other persons as the board
may order and direct.
(2) The board may require a person, other than a guardian or
committee, to whom it has directed compensation for a minor, a
dependent or an incapacitated employe or dependent to be paid,
to render, as and when it shall so order, accounts of the
receipts and disbursements of the person and to file with it a
satisfactory bond in a sum sufficient to secure the proper
application of the money received by the person.
Section 4. Sections 449(c)(8)(v), 450(a)(1), 451 and 601(b)
of the act are amended to read:
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. The document shall
specify:
* * *
(8) in the case of death:
* * *
(v) the amount paid or to be paid under section [307] 307.1
and to whom payment is to be made;
* * *
Section 450. (a) Any employer and the recognized or
certified and exclusive representative of its employe may agree
by collective bargaining to establish certain binding
obligations and procedures relating to workers' compensation:
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Provided, however, That the scope of the agreement shall be
limited to:
(1) benefits supplemental to those provided in sections 306
and [307] 307.1;
* * *
Section 451. Insurers, including the State Workers'
Insurance Fund, are authorized to provide, on a voluntary basis,
to sole proprietors, partners of a partnership or members of a
limited liability company, workers' compensation insurance
equivalent to that which employers provide to employes which
insure their liability under Article III. For the purposes of
computing the premium charge, the wages of a sole proprietor,
partner or member shall be at least equal to the minimum payroll
for a corporate officer, and no more than the maximum payroll
for a corporate officer, as established by underwriting rules
approved by the Insurance Department. If an injury is
compensable under the terms of this coverage, it shall be a
rebuttable presumption that the wages of the injured individual
are at least equal to minimum payroll for a corporate officer
for the purposes of calculating his average weekly wage and
paying benefits under sections 306 and [307] 307.1.
Section 601. * * *
(b) In all cases where an injury which is compensable under
the terms of this act is received by an employe as defined in
this section, there is an irrebuttable presumption that his
wages shall be at least equal to the Statewide average weekly
wage for the purpose of computing his compensation under
sections 306 and [307] 307.1.
* * *
Section 5. The definition of "compensation" in section 901
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of the act is amended to read:
Section 901. The following words and phrases when used in
this article shall have the meanings given to them in this
section unless the context clearly indicates otherwise:
* * *
"Compensation" means benefits paid pursuant to sections 306
and [307] 307.1.
* * *
Section 6. Section 909(c) introductory paragraph and (e)(1)
of the act are amended to read:
Section 909. * * *
(c) Transfers to the account pursuant to subsection (a)
shall be used to pay claims for loss of wages occurring or
medical treatment provided after the effective date of this
section under sections 306(a), (b), (c) and (f.1) and [307]
307.1 of this act or under sections 306(a), (b) and (c) and 307
of the act of June 21, 1939 (P.L.566, No.284), known as "The
Pennsylvania Occupational Disease Act," to a prefund claimant
upon exhaustion of the security posted by the liable defaulted
self-insurer: Provided, That:
* * *
(e) The following shall apply:
(1) If the department projects that the aggregate payments
to prefund claimants pursuant to this section during any one
fiscal year may exceed the transfer to the account for that
year, the secretary shall order the payment of benefits under
sections 306(a), (b) and (c) and [307] 307.1 at a percentage of
the full amounts payable under this act and "The Pennsylvania
Occupational Disease Act." The percentage shall be uniformly
applied to all benefits under those sections paid during that
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fiscal year. The secretary shall adjust that percentage from
time to time as is necessary based on updated projections on
payment of benefits.
* * *
Section 7. The definition of "compensation" in section 1601
of the act is amended to read:
Section 1601. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Compensation." Benefits paid pursuant to sections 306 and
[307] 307.1.
* * *
Section 8. This act shall take effect in 60 days.
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