On Oct. 23, PEN LEG pass bill to require insurers offer direct deposit.
PEN LEG passed Bill SB 1232 to amend PEN LEG 736-338,Workers' compensation act.
To require insurers to offer direct deposit to receive workers’ compensation payments.
Summary
Insurers, self-insured employers may offer option for one year after bill effective date.
Then, direct deposit will be required for payment, unless requested otherwise.
Employers must notify individuals entitled to compensation about direct deposit option.
PEN DoL will develop a standard authorization form to use for direct deposit.
The payment authorization form may be submitted electronically if both parties agree.
If person entitled to compensation changes the deposit account, he/she must submit a revised payment authorization form or a revised online authorization form to employer.
For a person entitled to compensation, compensation payments may not be split between multiple payment methods nor be split between multiple deposit accounts.
An insurer or a self-insured employer is not responsible for repaying money deposited into an incorrect account if error due to incorrect information provided by the person.
Employer will take reasonable actions to attempt to recover the money and any money later recovered will promptly be credited to person entitled to receive compensation.
False statement or failure to disclose a material fact to obtain/increase compensation may result in criminal prosecution, disqualification of benefits, repayment of money.
Legislative History
On May 31, 2024, bill introduced in Senate; on Jul. 10, 2024, bill passed in Senate.
On Jul. 11, 2024, bill delivered to House; on Oct. 9, 2024, bill was passed in House.
On Oct. 22, 2024, Senate concurred amendments; on Oct. 23, 2024, bill to governor.
Effectiveness
Would be effective in 60 days, applies to compensation paid on/after effective date.
Oct. 29, 2024 PEN LEG Governor Approval
On Oct. 29, 2024, PEN LEG reported governor signed bill SB 1232; enacted Act 126.
Regulators
PEN LEG
Entity Types
Bank; Corp; Ins
Reference
Act 126, 10/29/2024; Bill SB1232, 10/23/2024; Citation: PEN LEG 736-338;
