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§ 1000.5. Compromise and release

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 77 P.S. Workers’ CompensationEffective: February 22, 2022

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 77 P.S. Workers' Compensation (Refs & Annos)
Chapter 6. Procedure (Refs & Annos)
Administration, Coverages and Agreements
Effective: February 22, 2022
77 P.S. § 1000.5
§ 1000.5. Compromise and release
(a) Nothing in this act shall impair the right of the parties interested to compromise and release, subject to the provisions herein contained, any and all liability which is claimed to exist under this act on account of injury or death.
(b) Upon or after filing a petition, the employer or insurer may submit the proposed compromise and release by stipulation signed by both parties to the workers' compensation judge for approval. The workers' compensation judge shall consider the petition and the proposed agreement in open hearing and shall render a decision. The workers' compensation judge shall not approve any compromise and release agreement unless he first determines that the claimant understands the full legal significance of the agreement. The agreement must be explicit with regard to the payment, if any, of reasonable, necessary and related medical expenses. Hearings on the issue of a compromise and release shall be expedited by the department, and the decision shall be issued within thirty days.
(c) Every compromise and release by stipulation shall be in writing and duly executed, and the signature of the employe, widow or widower or dependent shall be attested by two witnesses or acknowledged before a notary public. However, the attestation by two witnesses or acknowledgment before a notary public shall not be required if the employe, widow or widower or dependent appears before the workers' compensation judge for the purposes of a hearing required under subsection (b) and provides a sworn oral statement that he or she understands the full legal significance of the agreement. The document shall specify:
(1) the date of the injury or occupational disease;
(2) the average weekly wage of the employe as calculated under section 309;1
(3) the injury, the nature of the injury and the nature of disability, whether total or partial;
(4) the weekly compensation rate paid or payable;
(5) the amount paid or due and unpaid to the employe or dependent up to the date of the stipulation or agreement or death and the amount of the payment of disability benefits then or thereafter to be made;
(6) the length of time such payment of benefits is to continue;
(7) in the event of a lien for subrogation under section 319,2 the total amount of compensation paid or payable which should be allowed to the employer or insurer;
(8) in the case of death:
(i) the date of death;
(ii) the name of the widow or widower;
(iii) the names and ages of all children;
(iv) the names of all other dependents; and
(v) the amount paid or to be paid under section 3073 and to whom payment is to be made;
(9) a listing of all benefits received or available to the claimant;
(10) a disclosure of the issues of the case and the reasons why the parties are agreeing to the agreement; and
(11) the fact that the claimant is represented by an attorney of his or her own choosing or that the claimant has been specifically informed of the right to representation by an attorney of his or her own choosing and has declined such representation.
(d) The department shall prepare a form to be utilized by the parties for a compromise and release of any and all liability under this act in accordance with the stipulation requirements of this section, and it shall issue such rules and regulations necessary for it and the board to enforce the procedure allowed by this section. No compromise and release shall be considered for approval unless a vocational evaluation of the claimant is completed and filed with the compromise and release and made a part of the record: Provided, however, That this requirement may be waived by mutual agreement of the parties or by a determination of a workers' compensation judge as inappropriate or unnecessary. The vocational evaluation shall be completed:
(1) by a qualified vocational expert approved by the department; or
(2) by the department on a fee-for-service basis.
Nothing in this clause shall serve to impose an obligation of liability or responsibility regarding vocational rehabilitation on either party or to require the implementation of vocational rehabilitation.

Credits

1915, June 2, P.L. 736, No. 338, art. IV, § 449, added 1996, June 24, P.L. 350, No. 57, § 22, effective in 60 days. Amended 2021, Dec. 22, P.L. 456, No. 95, § 1, effective in 60 days [Feb. 22, 2022].

Footnotes

77 P.S. § 582.
77 P.S. § 671.
77 P.S. §§ 542, 561 and 562.
77 P.S. § 1000.5, PA ST 77 P.S. § 1000.5
Current through Act 4 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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