As we previously mentioned on our Blog, Senate Bill 1232 was created to require insurance carriers to offer direct deposit of PA workers’ compensation benefits to injured workers across the State of Pennsylvania. Hopefully, this will allay the difficulties that many injured workers have with receiving their workers’ comp checks by regular mail. Governor Josh Shapiro signed Act 126 of 2024 (as SB 1232 became) into law on October 29, 2024.
By the terms of Act 126, insurer carriers (and self-insured employers) have one year to offer the payment of workers’ compensation benefits by direct deposit (so, by October 29, 2025). Failure of the insurer to offer direct deposit beyond that date would likely be considered a violation of the Pennsylvania Workers’ Compensation Act, punishable by an award of penalties.
Act 126 discusses the creation of a form, which would be completed by the injured worker to start, stop or change the direct deposit. Recently, the Pennsylvania Bureau of Workers’ Compensation released the first version of this form (LIBC-215).