Worker’s Compensation Penalties: What Are They?

By Stark & Stark on October 22nd, 2013

Posted in Workers' Compensation

Under Pennsylvania Workers’ Compensation Law, employers and insurers can be subject to monetary penalties.  The Law provides that the Court has the power to impose penalties for a violation of any provision of the Workers’ Compensation Act, Rules and Regulations. Employers and insurers may be penalized up to ten percent (10%) of an amount awarded, plus interest.  This penalty may be increased to fifty percent (50%) in cases of unreasonable or excessive delays.

What type of violations can result in the award of penalty?  Here are a few examples.

  • Stopping your weekly check without reason;
  • Refusal to pay medical bills;
  • Failure to issue forms required (Notice of Compensation Payable; Temporary Notice of Compensation Payable; Notice of Denial; Notice of Ability to Return to Work; notice of Benefits Offset);
  • Failure to properly investigate a claim;
  • Failure to insure for workers’ compensation; and
  • Violation of establishing Rules of Procedure

If you are currently receiving Workers’ Compensation medical and wage payments it is important that you keep a copy of the following:

  • Your compensation check/stub;
  • The envelope with mailing date or postmark;
  • Any late check/stub and envelope with postmarks;
  • Any unpaid medical bill;
  • A prescription or note from your medical provider for recommended treatment;
  • Any letter or notice of refusal or denial of service

Most penalty issues involve the payment of weekly wage payments and medical bills.  Workers’ Compensation Judges, in deciding whether a penalty is warranted, are concerned with the following:

  • When wage payments should have been made;
  • When payment was actually issued;
  • If there is any reason for the delay;
  • What impact a delayed payment may have on the Claimant;
  • Are unpaid medical bills related to the work injury;
  • When bills were submitted;
  • Were bills properly coded;
  • Were bills properly submitted

If you have any issue(s) with either wage payments or medical bills, please contact one of the attorneys in Stark & Stark’s Workers’ Compensation Group. You may be entitled to an award of penalties under the Workers’ Compensation Law.

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Hamilton, NJ

100 American Metro Boulevard
Hamilton, NJ 08619
Phone: 609.896.9060
Secondary phone: 800.535.3425
Fax: 609.896.0629
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Philadelphia, PA

One Liberty Place, 1650 Market St., Suite 3600
Philadelphia, PA 19103
Phone: 267.907.9600
Secondary phone: 800.535.3425
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Marlton, NJ

40 Lake Center, 401 NJ-73, Suite 130
Marlton, NJ 08053
Phone: 856.874.4443
Secondary phone: 888.241.7424
Fax: 856.874.0133
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Yardley, PA

777 Township Line Road, Suite 120
Yardley, PA 19067
Phone: 267.907.9600
Fax: 267.907.9659
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New York, NY

5 Pennsylvania Plaza 23rd Floor
New York, NY 10001
Phone: 800.535.3425
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Bridgeton, NJ

78 W Broad St
Bridgeton, NJ 08302
Phone: 856.874.4443
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