Governor Signs Law Requiring Direct Deposit For Workers’ Compensation Checks

Did you know that the way you receive your Workers’ Compensation benefits might be changing? On October 31, 2024, Governor Shapiro signed Senate Bill 1232, Act 126 of 2024.  The bill requires insurers to give Claimants the option to receive their Workers’ Compensation checks via direct deposit instead of paper checks.   Insurers may comply with the new provision of the Act within 60 days, however, they have one year before it becomes mandatory.

Workers’ Compensation is a type of insurance that provides medical benefits and wage replacement to injured or ill workers. The amount of Workers’ Compensation that an individual receives may vary state by state. Payouts are determined by the type of injury (temporary versus long-term) and the worker’s average weekly wage rate. A weekly wage rate is determined by taking the worker’s gross wages for the year before the illness or injury occurred. This year in Pennsylvania, for example, the maximum weekly compensation rate is $1,325. The benefits workers can receive are also sometimes offset by other factors, like Social Security benefits, severance pay, unemployment compensation, and other earnings.

According to the Bureau of Labor Statistics (BLS), private-sector employers reported 2.8 million injury and illness cases in 2022, up 7.5% from the year before. Some of the most common injuries that employees cite in their Workers’ Compensation claims are:

• Fractures
• Slip and falls
• Eye injuries
• Lacerations and contusions
• Sprains and strains
• Burns
• Overexertion injuries
• Traffic collisions
• Machinery, tool, and/or equipment accidents

Insurers will be required to offer injured workers an authorization form for direct deposit. While generally considered a positive thing for most injured workers, some people may encounter difficulties opening a bank account for a variety of reasons, including:

• Past bank account(s) closed due to negative balance
• History of unpaid bank fees or overdrafts
• Lack of required documentation, like a government-issued photo ID, proof of U.S. citizenship or residency, proof of address, etc.
• Financial obstacles, like needing an initial deposit amount ranging from $25 to several hundred dollars

The Workers’ Compensation systems can be confusing.  If you have questions about how to set up direct deposit or any other questions regarding your Workers’ Compensation claim, don’t worry.  Someone from our firm can assist you. We have decades of experience representing injured workers and helping them with their claims. To learn more, contact a representative online now.

Philadelphia Workers’ Compensation Lawyers at Galfand Berger LLP, Representing Injured Victims Since 1947

Contact the Philadelphia Workers’ Compensation attorneys at Galfand Berger LLP today. Call us at 800-222-USWA (8792) or fill out our online form for a free consultation. Located in Philadelphia, Bethlehem, Lancaster, and Reading, Pennsylvania, we serve clients throughout New Jersey and Pennsylvania, including Allentown and Harrisburg.