If you are hurt at work, you may be wondering, Does my employer have to carry PA workers’ compensation insurance? Yes, it’s a felony for an employer in Pennsylvania not to carry Workers’ Compensation insurance for its employees, but despite the risk of criminal penalties, many employers foolishly fail to maintain workers’ comp insurance. So what happens if you injure yourself at work, and when you report it to your boss, you are told the company has no Pennsylvania workers’ comp insurance? This will complicate your workers’ compensation claim, and in order that your rights are protected, you should contact the Philadelphia workers’ compensation law firm of Pearson Koutcher Law so that one of our knowledgeable and experienced workers’ compensation lawyers can represent you and guide you through the process.
In Pennsylvania, state law requires that an employer maintain PA workers’ compensation insurance for any employer who employs at least one employee who: could be injured in Pennsylvania; could be injured outside of Pennsylvania if the employment is principally localized in Pennsylvania; or, could be injured outside of Pennsylvania, while under a contract of hire in Pennsylvania, if the employment is not principally localized in any state, if the employment is principally localized in a state whose workers compensation laws do not apply, or the employment is outside the United States and Canada. There are some exceptions, including federal workers, longshoremen, railroad workers, casual workers (casual employment and not in the regular course of the business of the employer), domestic workers and agricultural workers (who earn less than $1,200 per year while working less than 30 hrs per year). Otherwise, your employer must maintain PA workers’ compensation insurance!
Fortunately, in 2006, a state fund was established, the Uninsured Employers Guaranty Fund (the “UEGF” for short), to ensure that injured workers whose employers do not have workers’ compensation insurance, will be paid the wage loss and medical benefits to which they are entitled. Prior thereto, if an employer did not maintain PA workers’ compensation insurance, the remedy for the injured worker was to proceed directly against the employer in a civil action (most likely negligence), which was often difficult due to the different burden of proof associated with a civil claim, or seek workers’ compensation benefits directly from the employer. In either scenario, the likelihood of a recovery was small, as the assets of the uninsured employer would need to be substantial to satisfy the claim of the injured worker, which often was not the case.
For you to receive benefits from the UEGF, the law requires that a process be followed.
You should also keep in mind that if the UEGF is brought into your case because your employer does not have PA workers’ comp insurance, it will be more difficult for you to enter into a workers’ comp settlement of your claim. Because the UEGF is funded by the state, it does not have the financial resources of a large insurance company like Liberty Mutual, Travelers, or PMA. Therefore, the UEGF usually is unable to offer much money in the way of a workers’ comp settlement. That being said, if you hurt yourself on the job and your employer doesn’t have PA workers’ compensation insurance, you should still hire the Philadelphia workers’ compensation law firm of Pearson Koutcher Law to file claims against your employer and the UEGF so that you can receive the maximum wage loss and medical benefits possible.
An employee who files a claim for workers’ compensation benefits against the Uninsured Employers Guaranty Fund seeks the same benefits (wage loss and payment of medical expenses) as if there was an insurance company involved in the case. In other words, there is no difference in what the injured worker can potentially receive from the Uninsured Employers Guaranty Fund as opposed to a private insurance company or an employer who is self insured. There are some differences in the enforcement of a claim against the Uninsured Employers Guaranty Fund, such as the inability to request penalties or seek unreasonable contest.
Don’t delay! There are strict notice requirements that must be followed. The Uninsured Employers Guaranty Fund must be made aware that a claim is potentially being filed within 45 days when the injured worker became aware that the employer did not maintain workers compensation insurance. Placing the Uninsured Employers Guaranty Fund on notice of the claim is a prerequisite to filing a claim for benefits. A separate and specific Claim Petition for benefits against the Uninsured Employers Guaranty Fund cannot be filed unless the injured worker first provides timely notice.
Let our Philadelphia workers’ compensation attorneys put our decades of experience to work for you, helping you navigate the complexities of the Pennsylvania Workers’ Compensation laws.