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VA HB426

VA HB426
Workers' compensation; employer's offset in event of recovery.


summary

Introduced
01/12/2026
In Committee
02/03/2026
Crossed Over
01/30/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Regular Session

Bill Summary

Workers' compensation; employer's offset in event of recovery. Amends provisions related to an employer's offset for recovery in certain actions brought under the Virginia Workers' Compensation Act. The bill requires that lifetime medical award benefits and ongoing indemnity award benefits shall remain in full force and effect if the claimant is under such an award at the time that recovery is effected, subject to the employer offset provisions. Under the bill, an employer's credit shall be applied as a continuing, pro rata reduction to benefits otherwise payable under an existing award until the employer's required credit is exhausted. The bill also removes language limiting an employee's entitlement to compensation and expenses for medical, surgical and hospital attention and funeral expenses.

AI Summary

This bill modifies how employers can reduce their workers' compensation payments when an injured worker receives money from a third party responsible for their injury, a process known as an "offset." Specifically, it ensures that if a worker is receiving lifetime medical benefits or ongoing payments for lost wages (indemnity benefits) at the time they recover money from a third party, these benefits will continue without interruption. The employer's right to offset these payments will be applied as a continuous, proportional reduction to future benefits until the employer's credit from the third-party recovery is used up. The bill also removes language that previously limited an employee's entitlement to compensation and expenses for medical care, hospital attention, and funeral costs, and clarifies that an employer's credit cannot be the sole reason to suspend or terminate an award.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Referred to Committee on Commerce and Labor (on 02/03/2026)

bill text


bill summary

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bill summary

Document Type Source Location
State Bill Page https://lis.virginia.gov/bill-details/20261/HB426
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB426) https://lis.blob.core.windows.net/files/1107854.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB426/text/HB426E
Labor and Commerce Amendment https://lis.virginia.gov/bill-details/20261/HB426/text/HB426AHC1
Subcommittee #2 Subcommittee Amendment https://lis.virginia.gov/bill-details/20261/HB426/text/HB426AH1
Fiscal Note/Analysis - Fiscal Impact Statement from Department of Planning and Budget (HB426) https://lis.blob.core.windows.net/files/1093665.PDF
BillText https://lis.virginia.gov/bill-details/20261/HB426/text/HB426
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