Child Support, Uninsured Employers In Workers’ Comp & More
Child Support And Workers’ Compensation Benefits
How Can Workers’ Comp Benefits Affect Child Support Payments?
Workers’ compensation benefits in PA can largely impact child support payments. The state classifies workers’ comp benefits as income, allowing wage garnishment to satisfy a child support obligation. This ensures that noncustodial parents receiving workers’ compensation benefits remain on the hook for their child support payments.
What Happens If Child Support Payments Fall Behind?
To cover unpaid child support, a lien attaches to the net proceeds of a settlement. This lien ensures the injured worker pays child support out of the compensation awarded.
What Defines A “Monetary Award” And “Net Proceeds?”
A “monetary award” includes any lump sum settlement paid under the Workers’ Compensation or Occupational Disease Acts, excluding structured settlement annuities. “Net proceeds” refer to the amount remaining after any deductions. For example: attorney fees, litigation expenses, unpaid medical expenses, and indemnity or medical payments. This would also include payments to the Medical Assistance program, provided this amount exceeds $5,000.
How Do Liens From The Department Of Human Services Affect Workers’ Comp?
The Department of Human Services (DHS) liens work differently. A DHS lien can enforce the lien on workers’ comp benefits even if the net proceeds fall below $5,000. A non-disbursement order can halt the release of the settlement funds until satisfaction of the DHS lien.
What Is The Required Documentation For Support Arrears?
Before the payout of any monetary workers’ comp award, the worker must submit their child support status statement.
Also required, documentation of any unpaid support from the Pennsylvania Child Support Program website. If arrears exist, the Workers’ Compensation Judge (WCJ) will order them paid directly to the state disbursement unit. This payment comes directly from the workers’ compensation settlement before any money goes to the injured worker.
Uninsured Employers In Workers’ Comp
What Is The Uninsured Employers Guaranty Fund (UEGF)?
The Uninsured Employers Guaranty Fund (UEGF) provides compensation to injured workers whose employers do not carry workers’ compensation insurance. It ensures injured workers receive the necessary benefits even if their employer fails to carry proper insurance.
What Notice Requirements Exist For Filing A Claim?
You must file notice of a claim against the uninsured employer before filing a petition for UEGF benefits. This notice must occur within 45 days of the worker learning that the employer does not have workers’ comp insurance. Failing to meet this deadline can prohibit the worker from claiming compensation from the uninsured employers fund.
Judgments And Liens In Workers’ Comp
How Can An Employee Obtain A Judgment Against An Uninsured Employer?
If an employer carries no insurance, an injured worker can file a claim petition and seek a protective judgment. The Bureau certifies this judgment, allowing recording with any common pleas court. However, execution of the judgement must wait until approval of the compensation agreement or award.
What Happens If An Employer Fails To Pay Benefits?
When an employer fails to pay benefits, the worker can file the approved agreement or award with the prothonotary. The prothonotary will then enter the unpaid balance as a judgment against the employer. This judgment becomes a workers’ compensation lien against the employer’s property, allowing for immediate execution to get benefits paid.
Can Creditors Take Workers’ Comp Benefits?
Creditors’ claims typically cannot touch workers’ compensation benefits, except for child support orders.
Bankruptcy And Insolvency In Workers’ Comp
What Happens If An Insurance Company Becomes Insolvent?
The Workers’ Compensation Security Fund ensures the payment of workers’ comp benefits when an insurance company files bankruptcy. This fund steps in to cover claims that the insolvent insurer can no longer pay.
What About Self-Insured Employers?
Self-insured employers must provide enough security to cover potential liabilities and financial difficulty. For example, bonds or letters of credit. The Self-Insurance Guaranty Fund steps in to pay benefits if a self-insured employer defaults.
What Implications Exist For Uninsured Employers?
For injuries occurring before January 8, 2007, no guaranty fund protects employees of uninsured employers. These injured workers must rely on claims against the bankrupt estate of the employer. In this instance, speak to a bankruptcy attorney and a workers’ comp attorney right away.
Wrap Up
Many issues can arise in workers’ compensation cases. From liens and judgements to child support obligations, lack of insurance, and even bankruptcy, many things can come up. Having a workers’ compensation attorney by your side will help you get through these issues without delays.
For help with your workers’ comp case, reach out to our offices 24/7 at (215) 609-4183 for a free consultation. Let us have your back.
