Tuesday, April 05, 2005

HB 590: Failure to Properly Pay Workers' Compensation Benefits

H.B. 590, P.N. 663 (BARRAR) This would amend the Workers’ Compensation Act 338 of 1915, P.L. 736.
A payer of workers’ compensation benefits would be required to make benefits payments within seven days of recognized payment dates, unless the payer has sought a suspension or termination of benefits appeal that permits such non-payment. Workers’ compensation medical payments and compensation payments ordered by a Workers’ Compensation Referee’s final order would be paid within 30 days of the order, unless the decision is appealed and a supersedeas is requested. Should the supersedeas be denied, the compensation and medical payments would be required to paid within ten days from the denial date.
The Labor and Industry Department would investigate and provide staff to assist workers’ compensation claimants with complaints about non-payments of benefits. The Department would be able to impose administrative penalties of not less than $25 and not more than $100 for each day of violation of payments provisions if the Department determines the violation was flagrant, the violator has a history of past violations on the same claim, if the violation was an attempt to pressure a claimant into a settlement, or if the payer acted in bad faith.


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