New Pennsylvania Law Requires Direct Deposit for Workers’ Compensation Payments
Published on: March 24, 2025
Pennsylvania Governor Josh Shapiro signed Senate Bill 1232 (2024 Act 126), mandating Employers and Insurers to offer direct deposit for workers’ compensation wage loss benefits. This law, effective December 28, 2024, modernizes the payment system, reducing delays and losses associated with paper checks.
Key Points of Senate Bill 1232:
- Effective Date: December 28, 2024
- Requirement: Employers and Insurers must offer direct deposit for workers’ compensation wage loss benefits
- Compliance Deadline: December 28, 2025
- Exceptions: Compromise and Release settlement payments and claims expected to last 60 days or less may still be paid by paper check
Benefits of Direct Deposit:
- Efficiency: Faster and more reliable payment process
- Security: Reduces risk of lost or misplaced checks
Implementation Steps:
- Notification: Employers and Insurers must inform Claimants about the direct deposit option when issuing a Notice of Compensation Payable
- Authorization Form: Provide Claimants with a form to fill out their banking information
- Direct Deposit Setup: Implement direct deposit within 45 days of receiving the completed form
Contact Us:
Our office is dedicated to fighting for injured workers to receive the wage loss and medical benefits they deserve. If you have a claim or think you do, call us at 610-446-3457 or email us to set up a consultation with one of our attorneys. We will guide you through the process and fight for your recovery.
