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What Happens If You Get Caught Working While on Workers Comp In Pennsylvania

Oftentimes when a worker is injured, they want to know if they are allowed to work while receiving workers’ compensation benefits. This really depends on the status of your case. There are some circumstances in which you may be able to work in a limited or part-time capacity if you are partially disabled, but this will have an impact on your benefits. There are strict rules with how this must be reported. If you are caught working without reporting it to your insurance carrier, there are serious consequences to your workers’ compensation claim, and there may even be criminal penalties.

What Is Workers’ Compensation?

To recap, workers’ compensation is composed of two types of benefits: medical and wage loss. if you are currently getting workers’ compensation wage loss benefits, that means that the insurance carrier has recognized that you were injured at work and that the injury has rendered you “disabled”, i.e., unable to perform your pre-injury job duties. Thus, an injured worker is not permitted to be receiving total disability benefits under workers’ compensation and be working and earning wages on top of that. This follows the same rationale as how a person cannot collect unemployment and work a job.

However, if your work injury has not interfered with your ability to work and you are only receiving medical benefits in relation to your work injury, then yes, you are able to and should continue working.

Since there is no way to determine exactly how long an injury will last, workers’ compensation benefits only last as long as the disability from the work injury lasts. When the disability ends, so do the workers’ compensation benefits. As such, by returning to your full-time, full-duty position, you are indicating that you are no longer “disabled” under workers’ compensation laws.

Are You Allowed To Work While Collecting Workers’ Compensation?

While you are allowed to work while receiving workers’ compensation benefits, remember, there are strict rules of reporting it. If you are injured at work and cleared by a doctor to return to work light-duty, you must report this to the insurance company. Even if you are going to start working light-duty for your pre-injury employer, you should still inform the insurance company. If you are able to find a job with a different employer within your restrictions and start earning wages, you must report your income to your pre-injury employer’s insurance company.

If you are earning less than you were prior to your injury, you will still be entitled to partial wage loss benefits. However, it is important to understand that the amount you were receiving while completely out of work will be reduced. The amount you will receive through workers’ compensation will be calculated based on the difference between your pre-injury wages and the wages you are now earning working in a modified capacity because of your work injury. It is always worthwhile to have an attorney review the amount you are being paid to make sure it is accurate. We can easily do this by reviewing your paystubs. Also, if you have to come out of work completely again because of your work injury, your checks are supposed to be reinstated to full wage loss benefits. However, this may require litigation as often times the insurance company will try to fight this.

If the job you want to start will pay you the same as or more than the wages you earned prior to your work injury, payment for lost wages will be suspended. This means your wage loss checks will be stopped temporarily. However, your medical benefits will be ongoing. When this happens, you will likely be sent a document by your insurance company notifying you that your checks will be stopped. It is important to have an attorney review this document to make sure you understand what rights you are giving up and that your benefits should, in fact, be temporarily suspended. Even while “suspended”, you will still be entitled to medical benefits.

It is extremely important that you report any income you have while out of work with your employer on workers’ compensation benefits. Failure to do so can result in workers’ compensation fraud and lead to a loss of benefits, regardless of whether you are medically entitled to partial benefits and your disability is ongoing. To be safe, it is always best to consult with an attorney before returning to work in any capacity, because it helps to know your obligations and what impact your actions will have on your benefits. Furthermore, if the job you are seeking to start is physical in nature and outside of your restrictions, your employer can use this as evidence to stop paying your benefits. They will try to argue that if you are capable of doing the new physical work, you should have been capable of returning to your pre-injury job, and thus, you are no longer “disabled” under the Act.

What Happens If You Get Caught Working?

If you are receiving full workers’ compensation benefits and are working without reporting it, there are serious repercussions. Although we rarely see this with our own clients, unfortunately, some people try to get away with this. As noted in a previous blog (HERE), insurance companies have the right to conduct surveillance on the activities of an injured worker that is making a workers’ compensation claim. Remember, if you are in public, you have no expectation of privacy under the law. Moreover, investigative companies are able to search through your social media and can uncover evidence showing that you are currently working. Thus, if you are caught working while receiving full benefits, not only will you likely lose your workers’ compensation benefits, but you could be subject to criminal prosecution. This is why honesty and transparency are always the best policy.

Contact The Experienced Attorneys At Stern & Cohen

If you are unsure of whether you can or should return to work in some capacity, it is always best to contact an attorney to understand the impact it may have on your claim. There is nothing wrong with contemplating returning to work. However, there are strategic considerations as well as legal considerations that many injured workers are not aware of. By contacting us, you can make a fully informed decision.

The Insurance Company is Trying to ‘Suspend’ your Benefits – What Does This Mean?

There may come a time when your employer tries to suspend, or stop, your Workers’ Compensation benefits that you have been receiving as a result of a work injury.  According to the Pennsylvania Workers’ Compensation Act, your employer can suspend your compensation benefits for the following reasons: (1) You returned to work, or there is proof of your ability to return to work, without a loss of earnings; (2) you refused reasonable medical treatment; (3) refusal to comply with an order for an expert examination or interview; (4) incarceration after conviction; (5) failure to complete and return a verification form; (6) voluntary withdrawal from the labor market; (7) total or permanent disability for a non-work-related condition; or (8) employer job offers and earning power assessments. Any suspension does not affect your medical benefits. Your employer is still on the hook and will continue to pay for reasonable and necessary medical care related to your work injury.

Fortunately, your employer cannot just stop paying your benefits without giving you notice. This can occur in several different ways.  If you have returned to work without a loss of earnings compared to what you made before you got hurt, you and the insurance company can sign a “Supplemental Agreement” to suspend your benefits.  This is a mutual agreement that your lost wage checks can stop.  The language in these Agreements can be tricky and it is still worth your while to have a workers’ compensation lawyer review it.  Once signed, your benefits are “suspended.”  As mentioned above, the insurance company still must pay for medical treatment.  One nuance here is that if you stop working again due to your injury, if a Supplemental Agreement was signed, the insurance company does not necessarily have to automatically start wage loss payments again.  If they feel as if you should have been able to continue to work, they can force litigation.  You may have to file a Reinstatement Petition in court in order to begin the payments again.  This is a critical reason why it is imperative that you have a good handle on your situation when you go back to work and make an informed decision before you sign anything.

Furthermore, occasionally, when an injured worker returns to work, rather than seek his/her cooperation in signing an Agreement, the insurance company may just file a “Notification of Suspension.”  This must be filed promptly upon the return to work.  If you receive this form, you want to consult a workers’ compensation lawyer.  If you believe your return to work will be seamless and you do not anticipate any issues, then receipt of this document may not require any action on your part.  However, if you view the return to work as a trial and you are uncertain if you can last; or, if you returned and quickly stopped work again due to pain/discomfort (or even the employer changing their mind about making a job available to you), then you need to take this document to workers’ compensation lawyer quickly.  At Stern & Cohen, we deal with these forms all the time.  You have the right to “Challenge” the form that indicates you have returned to work (even if you did, in fact, return on a brief basis).  By timely filing a Challenge, the case will get in court quickly and a skilled workers’ compensation lawyer will be able to get your wage loss benefits started again very fast.

The insurance company may also seek a “suspension” of benefits even if you have not returned to work.  This is common.  The most frequent scenario here is that while receiving benefits, the employer offers you a job.  This could be after you have attended an independent medical examination and their chosen doctor has concluded you can work; or, perhaps they try to offer a job based on a release from one of your own doctors.  Either way, if the insurance company gets the medical release and learns that a job was offered and you did not return, they may file a Suspension Petition.  Do not panic.  Speak with the lawyers at Stern & Cohen immediately.  You have every right to defend this.  Chances are, there are very good arguments to be made why you did not return to work.  We have defended thousands of cases like these and we know the strategy needed to stop an insurance company from obtaining a suspension of your benefits.

We also like to paint real-life examples, so consider the following:  You hurt your lower back while working as a plumber for ABC Plumbing.  ABC Plumbing accepts your injury and begins paying you Workers’ Compensation benefits and covers your medical bills.  The company sends you for an IME and the doctor says you can return to work in a light-duty capacity doing a sedentary job.  ABC Plumbing offers you a desk job with the same hours and same pay as before your work injury.  Your treating physicians have not released you back to work in any capacity and you know you cannot sit for eight hours a day due to your ongoing back pain, so you do not return.  In response, ABC Plumbing files a Suspension Petition seeking to stop your compensation benefits.  This is a common scenario.  We know the evidence to present in these cases to WIN on your behalf.

If you have received any indication that the insurance company is trying to “suspend” your benefits, reach out to our office and we will guide you through the process.  The call is always FREE.

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