Claimant Awarded Penalties for Untimely Workers’ Compensation Checks

Case Study

June 16, 2011

The Claimant, a resident of Lewistown, Dauphin County, filed a Review Petition on March 14, 1996, alleging that the Employer has failed to pay the Claimant’s workers’ compensation benefits on a weekly basis. The Claimant was paid on a weekly basis prior to his work injury. After the Claimant was placed on compensation, he received it on a weekly basis. After the Employer, ABF, acquired Carolina Freight Carriers, the Claimant received it on a biweekly basis. The Claimant received some of the biweekly checks two to three weeks late, causing his bills to be paid late.

The Claimant filed a Review Petition on March 14, 1996, requesting payments be made on a weekly basis and that costs, interest, penalties and attorney fees for unreasonable contest be assessed against the Employer. The Review Petition was assigned to Workers’ Compensation Judge Mullen in Harrisburg. On September 27, 1996, the Claimant’s Review Petition was granted and Judge Mullen ordered the Employer and ABF Risk Management to pay costs, interest, penalties and attorney’s fees for unreasonable contest. The Employer filed an Appeal, arguing that, although the compensation checks were paid on a biweekly basis, they were timely and that Judge Mullen was in error in awarding penalties and interest on biweekly compensation payments. The appeal was assigned to Workers’ Compensation Appeal Board Commissioner Santone in Harrisburg. Commissioner Santone found the Claimant’s testimony credible and that the Employer and ABF Risk Management were responsible for penalties at a rate of ten percent (10%) for compensation that was paid on a biweekly basis. Commissioner Santone also found the Employer was responsible for statutory interest of ten percent (10%) for compensation paid on a biweekly basis in violation of Section 308 of the Pennsylvania Workers’ Compensation Act.

Appeal Board Commissioner Santone affirmed the Decision of Workers’ Compensation Judge Mullen.