Bill Summary – FastDemocracy

PRINTER'S NO.   3610
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                         HOUSE BILL
                         No. 2559
                                                Session of
                                                  2024
     INTRODUCED BY POWELL, GIRAL, MAYES, HILL-EVANS, DONAHUE, RABB,
        McNEILL, PROBST, McANDREW, SANCHEZ, GREEN AND FRANKEL,
        SEPTEMBER 17, 2024
     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, SEPTEMBER 17, 2024
                                     AN ACT
 Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An
    act defining the liability of an employer to pay damages for
    injuries received by an employe in the course of employment;
    establishing an elective schedule of compensation; providing
    procedure for the determination of liability and compensation
    thereunder; and prescribing penalties," in damages by action
    at law, further providing for recovery; in liability and
    compensation, further providing for schedule of compensation,
    repealing provisions relating to computation of benefits and
    providing for computation of benefits; in procedure, further
    providing for compromise and release, for collective
    bargaining agreement and for workers' compensation insurance;
    in additional coverages, further providing for irrebuttable
    presumption; in Self-Insurance Guaranty Fund, further
    providing for definitions and for prefund account; and, in
    Uninsured Employers Guaranty Fund, further providing for
    definitions.
    The General Assembly of the Commonwealth of Pennsylvania
 hereby enacts as follows:
    Section 1.    Sections 204(a) and 306(g) introductory
 paragraph, (4), (5) and (6) and (h) of the act of June 2, 1915
 (P.L.736, No.338), known as the Workers' Compensation Act, are
 amended to read:
    Section 204.    (a)   No agreement, composition, or release of
 damages made before the date of any injury shall be valid or
 shall bar a claim for damages resulting therefrom; and any such
 agreement is declared to be against the public policy of this
 Commonwealth. The receipt of benefits from any association,
 society, or fund shall not bar the recovery of damages by action
 at law, nor the recovery of compensation under article three
 hereof; and any release executed in consideration of such
 benefits shall be void: Provided, however, That if the employe
 receives unemployment compensation benefits, such amount or
 amounts so received shall be credited as against the amount of
 the award made under the provisions of sections 108 and 306,
 except for benefits payable under section 306(c) or [307] 307.1.
 Fifty per centum of the benefits commonly characterized as "old
 age" benefits under the Social Security Act (49 Stat. 620, 42
 U.S.C. § 301 et seq.) shall also be credited against the amount
 of the payments made under sections 108 and 306, except for
 benefits payable under section 306(c): Provided, however, That
 the Social Security offset shall not apply if old age Social
 Security benefits were received prior to the compensable injury.
 The severance benefits paid by the employer directly liable for
 the payment of compensation and the benefits from a pension plan
 to the extent funded by the employer directly liable for the
 payment of compensation which are received by an employe shall
 also be credited against the amount of the award made under
 sections 108 and 306, except for benefits payable under section
 306(c). The employe shall provide the insurer with proper
 authorization to secure the amount which the employe is
 receiving under the Social Security Act.
    * * *
    Section 306.   The following schedule of compensation is
 hereby established:
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    * * *
    (g)   Should the employe die from some other cause than the
 injury, payments of compensation to which the deceased would
 have been entitled to under section 306(c)(1) to (25) shall be
 paid to the following persons who at the time of the death of
 the deceased were dependents [within the definition of clause 7
 of section 307] as defined in section 307.1 and in the following
 order and amounts:
    * * *
    (4)   If there is no surviving widow or widower and no
 surviving child or children of the deceased then to that
 dependent or those dependents named in [clause 5 of section 307]
 section 307.1(a)(5).
    (5)   If there are no persons eligible as named above or in
 those classes then to those persons who are named in [clause 6
 of section 307] section 307.1(a)(6).
    (6)   When such compensation is paid to dependents above
 named, compensation shall not cease even though the person
 receiving the payments ceases to be a dependent as defined in
 section [307] 307.1.
    * * *
    (h)   Any person receiving compensation under section 306(a)
 or (c)(23) or [307] 307.1 as a result of an injury which
 occurred prior to August 31, 1993, shall, beginning January 1,
 2007, receive a minimum amount of one hundred dollars ($100) per
 week. The additional compensation shall be paid by the self-
 insured employer or insurance carrier making payment and shall
 be reimbursed in advance by the Commonwealth on a quarterly
 basis as provided in rules and regulations of the department.
 The payment of additional compensation shall be made by the
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 carrier or self-insured employer only during those fiscal years
 for which appropriations are made to cover reimbursement.
    Section 2.   Section 307 of the act is repealed:
    [Section 307.   In case of death, compensation shall be
 computed on the following basis, and distributed to the
 following persons: Provided, That in no case shall the wages of
 the deceased be taken to be less than fifty per centum of the
 Statewide average weekly wage for purposes of this section:
    (1)   If there be no widow nor widower entitled to
 compensation, compensation shall be paid to the guardian of the
 child or children, or, if there be no guardian, to such other
 persons as may be designated by the board as hereinafter
 provided as follows:
    (a)   If there be one child, thirty-two per centum of wages of
 deceased, but not in excess of the Statewide average weekly
 wage.
    (b)   If there be two children, forty-two per centum of wages
 of deceased, but not in excess of the Statewide average weekly
 wage.
    (c)   If there be three children, fifty-two per centum of
 wages of deceased, but not in excess of the Statewide average
 weekly wage.
    (d)   If there be four children, sixty-two per centum of wages
 of deceased, but not in excess of the Statewide average weekly
 wage.
    (e)   If there be five children, sixty-four per centum of
 wages of deceased, but not in excess of the Statewide average
 weekly wage.
    (f)   If there be six or more children, sixty-six and two-
 thirds per centum of wages of deceased, but not in excess of the
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 Statewide average weekly wage.
 The amounts payable under (b), (c), (d), (e) and (f) of clause
 (1) of this section shall be divided equally among the children
 if those children are with different guardians.
    (2)   To the widow or widower, if there be no children, fifty-
 one per centum of wages, but not in excess of the Statewide
 average weekly wage.
    (3)   To the widow or widower who is the guardian of all of
 the deceased's children, payment shall be as follows:
    (a)   If there is one child, sixty per centum of wages, but
 not in excess of the Statewide average weekly wage.
    (b)   If there are two or more children, sixty-six and two-
 thirds per centum of wages, but not in excess of the Statewide
 average weekly wage.
    (4)   If there is a widow or widower who is not the guardian
 of all of the deceased's children, the widow or widower and to
 the respective guardians as follows:
    (a)   If there is one child, a total of sixty per centum of
 wages, but not in excess of the Statewide average weekly wage,
 to be divided equally between the widow or widower and the
 child.
    (b)   If there are two or more children, a total of sixty-six
 and two-thirds per centum of wages, but not in excess of the
 Statewide average weekly wage, to be divided as follows: thirty-
 three and one-third per centum to the widow or widower and the
 remainder to be divided equally among the children.
    (5)   If there be neither widow, widower, nor children
 entitled to compensation, then to the father or mother, if
 dependent to any extent upon the employe at the time of the
 injury, thirty-two per centum of wages but not in excess of the
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 Statewide average weekly wage: Provided, however, That in the
 case of a minor child who has been contributing to his parents,
 the dependency of said parents shall be presumed: And provided
 further, That if the father or mother was totally dependent upon
 the deceased employe at the time of the injury, the compensation
 payable to such father or mother shall be fifty-two per centum
 of wages, but not in excess of the Statewide average weekly
 wage.
    (6)   If there be neither widow, widower, children, nor
 dependent parent, entitled to compensation, then to the brothers
 and sisters, if actually dependent upon the decedent for support
 at the time of his death, twenty-two per centum of wages for one
 brother or sister, and five per centum additional for each
 additional brother or sister, with a maximum of thirty-two per
 centum of wages of deceased, but not in excess of the Statewide
 average wage, such compensation to be paid to their guardian, or
 if there be no guardian, to such other person as may be
 designated by the board, as hereinafter provided.
    (7)   Whether or not there be dependents as aforesaid, the
 reasonable expense of burial, not exceeding seven thousand
 dollars ($7,000), which shall be paid by the employer or insurer
 directly to the undertaker (without deduction of any amounts
 theretofore paid for compensation or for medical expenses).
    Compensation shall be payable under this section to or on
 account of any child, brother, or sister, only if and while such
 child, brother, or sister, is under the age of eighteen unless
 such child, brother or sister is dependent because of disability
 when compensation shall continue or be paid during such
 disability of a child, brother or sister over eighteen years of
 age or unless such child is enrolled as a full-time student in
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 any accredited educational institution when compensation shall
 continue until such student becomes twenty-three. No
 compensation shall be payable under this section to a widow,
 unless she was living with her deceased husband at the time of
 his death, or was then actually dependent upon him and receiving
 from him a substantial portion of her support. No compensation
 shall be payable under this section to a widower, unless he be
 incapable of self-support at the time of his wife's death and be
 at such time dependent upon her for support. If members of
 decedent's household at the time of his death, the terms "child"
 and "children" shall include step-children, adopted children and
 children to whom he stood in loco parentis, and children of the
 deceased and shall include posthumous children. Should any
 dependent of a deceased employe die or remarry, or should the
 widower become capable of self-support, the right of such
 dependent or widower to compensation under this section shall
 cease except that if a widow remarries, she shall receive one
 hundred four weeks compensation at a rate computed in accordance
 with clause (2) in a lump sum after which compensation shall
 cease: Provided, however, That if, upon investigation and
 hearing, it shall be ascertained that the widow or widower is
 living with a man or woman, as the case may be, in meretricious
 relationship and not married, or the widow living a life of
 prostitution, the board may order the termination of
 compensation payable to such widow or widower. If the
 compensation payable under this section to any person shall, for
 any cause, cease, the compensation to the remaining persons
 entitled thereunder shall thereafter be the same as would have
 been payable to them had they been the only persons entitled to
 compensation at the time of the death of the deceased.
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    The board may, if the best interest of a child or children
 shall so require, at any time order and direct the compensation
 payable to a child or children, or to a widow or widower on
 account of any child or children, to be paid to the guardian of
 such child or children, or, if there be no guardian, to such
 other person as the board as hereinafter provided may direct. If
 there be no guardian or committee of any minor, dependent, or
 insane employe, or dependent, on whose account compensation is
 payable, the amount payable on account of such minor, dependent,
 or insane employe, or dependent may be paid to any surviving
 parent, or such other person as the board may order and direct,
 and the board may require any person, other than a guardian or
 committee, to whom it has directed compensation for a minor,
 dependent, or insane employe, or dependent to be paid, to
 render, as and when it shall so order, accounts of the receipts
 and disbursements of such person, and to file with it a
 satisfactory bond in a sum sufficient to secure the proper
 application of the moneys received by such person.]
    Section 3.   The act is amended by adding a section to read:
    Section 307.1.   (a)   Subject to subsections (b) and (c), in
 case of death, compensation shall be computed on the following
 basis and distributed as follows:
    (1)   If there is no widow or widower entitled to
 compensation, the following shall apply:
    (i)   Compensation shall be paid to the guardian of the child
 or children or, if there is no guardian, to other persons as may
 be designated by the board as follows:
    (A)   If there is one child, thirty-two per centum of wages of
 the deceased.
    (B)   If there are two children, forty-two per centum of wages
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 of the deceased.
    (C)    If there are three children, fifty-two per centum of
 wages of the deceased.
    (D)    If there are four children, sixty-two per centum of
 wages of the deceased.
    (E)    If there are five children, sixty-four per centum of
 wages of the deceased.
    (F)    If there are six or more children, sixty-six and two-
 thirds per centum of wages of the deceased.
    (ii)    The amounts payable under subparagraph (i)(B), (C),
 (D), (E) and (F) shall be divided equally among the children if
 those children are with different guardians.
    (2)    If there are no children, fifty-one per centum of wages
 of the deceased shall be paid to the widow or widower.
    (3)    Compensation shall be paid to the widow or widower who
 is the guardian of all of the deceased's children as follows:
    (i)    If there is one child, sixty per centum of wages.
    (ii)    If there are two or more children, sixty-six and two-
 thirds per centum of wages.
    (4)    If there is a widow or widower who is not the guardian
 of all of the deceased's children, compensation shall be paid to
 the widow or widower and to the respective guardians as follows:
    (i)    If there is one child, a total of sixty per centum of
 wages, to be divided equally between the widow or widower and
 the child.
    (ii)    If there are two or more children, a total of sixty-six
 and two-thirds per centum of wages, to be divided as follows:
    (A)    thirty-three and one-third per centum to the widow or
 widower; and
    (B)    the remainder to be divided equally among the children.
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    (5)    If there is not a widow, widower or child entitled to
 compensation, compensation shall be paid to the father or
 mother, if dependent to any extent upon the employe at the time
 of the injury, in the amount of thirty-two per centum of wages,
 subject to the following:
    (i)    In the case of a minor child who has been contributing
 to the minor child's parents, the dependency of the parents
 shall be presumed.
    (ii)    If the father or mother was totally dependent upon the
 deceased employe at the time of the injury, the compensation
 payable to the father or mother shall be fifty-two per centum of
 wages.
    (6)    If there is not a widow, widower, child or dependent
 parent entitled to compensation, compensation shall be paid to
 the brothers and sisters, if actually dependent upon the
 decedent for support at the time of the decedent's death, in the
 amount of twenty-two per centum of wages for one brother or
 sister and five per centum additional for each additional
 brother or sister, with a maximum