Pennsylvania Workers’ Compensation: New Direct Deposit Law Helps Injured Workers Get Paid Faster

A Faster, Easier Way to Get Your Workers’ Comp Payments

If you were hurt on the job and receive workers’ compensation in Pennsylvania, there’s good news: a new law now lets you get your payments by direct deposit — straight to your bank account.

Governor Josh Shapiro signed Senate Bill 1232 (Act 126 of 2024) to modernize the state’s workers’ compensation system. Starting in 2025, insurance companies must offer every injured worker the option to receive wage-loss benefits electronically instead of by paper check.

This change will help thousands of injured workers across Pennsylvania get paid more quickly, safely, and reliably.

When Does the New Law Take Effect?

The direct deposit option became effective December 28, 2024, and all insurance carriers and self-insured employers must be ready to offer it by December 28, 2025.

That means by the end of 2025, every Pennsylvania injured worker should have the choice between:

• Direct deposit into a checking or savings account, or
• Traditional paper checks, if preferred.

Why Choose Direct Deposit for Workers’ Comp Benefits?

Many injured workers live paycheck-to-paycheck, depending on weekly or biweekly wage-loss checks. With direct deposit, you don’t have to wait for the mail or worry about lost or stolen checks.

Advantages of direct deposit include:

• Faster access to money – payments go straight to your account.
• More security – no paper checks to lose or delay.
• Predictable payment dates – know exactly when your benefits arrive.
• Less hassle – fewer trips to the bank and fewer payment errors.

For most injured workers, direct deposit is the most convenient and reliable option available.

How to Set Up Direct Deposit

To get started, you’ll need to complete a Direct Deposit Authorization Form (LIBC-215).

Your employer’s insurance company must give you this form once they’re ready to offer direct deposit — usually when they issue your Notice of Compensation Payable (the document confirming your benefits).

Steps to enroll:

1. Fill out Form LIBC-215 with your bank account and routing number.
2. Choose one checking or savings account for the deposit.
3. Sign and return the form to the insurer promptly.
4. Keep a copy for your records.

Once your insurer receives your valid form, they must start direct deposit within 45 days.

(You can also download the form directly from the Pennsylvania Department of Labor & Industry website. https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/businesses/compensation/wc/claims/wcais/documents/wcais-forms/libc-215.pdf)

You Still Have a Choice

The new law gives you control over how you get paid. If you don’t have a bank account or prefer paper checks, you can continue receiving your benefits by mail. You cannot be forced to use direct deposit.

What Happens If You Don’t Return the Form?

If you don’t return the authorization form within 30 days of being notified, your insurer will keep sending paper checks until you do. You’ll still receive your benefits, but you’ll miss out on faster and safer payments.

Changing or Stopping Direct Deposit

You may change or cancel your direct deposit up to twice per year, unless a workers’ compensation judge allows more changes. If you switch banks or close your account, notify your insurer immediately and complete a new authorization form to avoid payment delays.

Mistakes to Avoid

Double-check your account and routing numbers before submitting the form.

If money is sent to the wrong account because of incorrect information you provided, the insurer isn’t automatically responsible for repaying it — though they must take reasonable steps to recover it.

Special Situations

The insurance company can choose not to send payment by direct deposit only in the following scenarios:

• Short-term claims (60 days or less): Payments may still be sent by check.
• Lump-sum settlements (Compromise & Release): Usually paid by check unless both sides agree to direct deposit.
• Medical benefits: The new rule mainly applies to wage-loss payments, not to medical reimbursements.

What This Means for Injured Workers

This new law — Act 126 of 2024 — is designed to make life easier for people recovering from workplace injuries. By reducing delays and providing safer, faster payments, Pennsylvania’s workers’ compensation system is catching up with modern banking technology. Still, as with any new process, mistakes can happen.

Need Help with Your Workers’ Compensation Payments?

If your benefits are delayed, misdirected, or you’re not sure whether your insurer is following the new law, our experienced workers’ compensation attorneys can help. At Galfand Berger, we represent injured workers across Pennsylvania — making sure they receive the full benefits they deserve and every payment arrives on time. Hurt at work? Call 800-222-USWA (8792) or contact us online for a free consultation. We have offices in Philadelphia, Bethlehem, Lancaster, and Reading and serve clients in Pennsylvania and New Jersey.