Pennsylvania Appellate Court States No Compensation Wage Loss Benefit Deduction for Federal Pandemic Unemployment Compensation Benefits

Under Pennsylvania workers’ compensation law, a company that pays an employee workers’ compensation wage loss benefits can deduct any state unemployment compensation benefits that the injured employee has also received.  This can be done on a dollar-for-dollar basis. However, a recent decision of the Pennsylvania Appellate Courts stated that no such deduction is permitted from the funds that the injured employee has received from Federal Pandemic Unemployment Compensation benefits. The reasoning is that pandemic compensation benefits are available to individuals who are not otherwise eligible to receive “regular” (that is state-funded) unemployment compensation benefits. Since the pandemic unemployment benefits are fully funded by the Federal Government, there is no reason to allow the company paying workers’ compensation benefits to reduce those by the amount of the pandemic benefits.

If you had a claim where you received both benefits at some time during your injury, please be careful that only regular state unemployment is used to reduce your workers’ compensation.

Learn more about:  Workers’ Compensation Disability Benefits

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