Workers’ Compensation
The workers’ compensation system in Pennsylvania is controlled by the Workers’ Compensation Act (hereinafter “Act”). Recently celebrating its 100th anniversary, the Pennsylvania Workers’ Compensation Act was enacted by the Pennsylvania legislature in 1915. The legislature adopted the Occupational Disease Act in 1939. Since the initial adoption, there have been multiple amendments; however, the purpose of the law has remained constant. The aim of the workers’ compensation system is to protect both employees and employers.
The Act outlines the benefits available to injured Pennsylvania workers, the circumstances under which benefits are available and the procedures for obtaining them. The Department of Labor & Industry and the Bureau of Workers’ Compensation carry out the administrative functions defined in the Act.
In Pennsylvania, an injured worker receives wage loss and medical benefits, on a no-fault basis, when he or she sustains an injury arising in the course of employment. The employer provides this coverage and, in turn, is protected from direct lawsuits by the injured employee. This means that coverage under the Act extinguishes the employee’s common law right to sue the employer, under tort law theories, in civil court (subject to some limited exceptions).
Workers’ compensation insurance coverage is mandatory for most employers under Pennsylvania law. Employers who do not have workers’ compensation coverage may be subject to lawsuits by employees and to criminal prosecution by the Commonwealth. Employees are covered for the entire period of their employment.
