Bill > HB1181

This bill amends Section 319 of the Workers' Compensation Act to clarify rules about subrogation and compensation when a workplace injury involves a third party. Specifically, the bill maintains that if an employee is injured due to a third party's actions, the employer can be subrogated (legally substituted) to the employee's right to seek damages from that third party, up to the amount of workers' compensation paid. The bill specifies that attorney's fees and other legal expenses will be proportionally shared between the employer and employee based on the compensation paid versus the total settlement amount. Additionally, the bill clarifies that if an employee receives disability or medical payments that were initially deemed not compensable, but later an agreement or award determines the injury is compensable, the employer or insurance company can be subrogated for the amount they already paid. The changes aim to provide more clarity and fairness in how workers' compensation claims involving third-party liability are handled. The bill will take effect 60 days after its passage.

Labor and Employment

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1181