Pennsylvania HB 1181: An Act amending the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, in liability and compensation, further providing for compensable injuries, subrogation and proration.

Bill Text

PRINTER'S NO. 1318
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1181
Session of
2025
INTRODUCED BY GROVE, M. MACKENZIE, JAMES AND GLEIM,
APRIL 9, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 9, 2025
AN ACT
Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An
act defining the liability of an employer to pay damages for
injuries received by an employe in the course of employment;
establishing an elective schedule of compensation; providing
procedure for the determination of liability and compensation
thereunder; and prescribing penalties," in liability and
compensation, further providing for compensable injuries,
subrogation and proration.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 319 of the act of June 2, 1915 (P.L.736,
No.338), known as the Workers' Compensation Act, is amended to
read:
Section 319. Where the compensable injury is caused in whole
or in part by the act or omission of a third party, the employer
shall be subrogated to the right of the employe, his personal
representative, his estate or his dependents, against such third
party to the extent of the compensation payable under this
article by the employer; reasonable attorney's fees and other
proper disbursements incurred in obtaining a recovery or in
effecting a compromise settlement shall be prorated between the
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employer and employe, his personal representative, his estate or
his dependents. The employer shall pay that proportion of the
attorney's fees and other proper disbursements that the amount
of compensation paid or payable at the time of recovery or
settlement bears to the total recovery or settlement. Any
recovery against such third person in excess of the compensation
theretofore paid by the employer shall be paid forthwith to the
employe, his personal representative, his estate or his
dependents, and shall be treated as an advance payment by the
employer on account of any future [instalments of] compensation.
Where an employe has received payments for the disability or
medical expense resulting from an injury in the course of his
employment paid by the employer or an insurance company on the
basis that the injury and disability were not compensable under
this act in the event of an agreement or award for that injury
the employer or insurance company who made the payments shall be
subrogated out of the agreement or award to the amount so paid,
if the right to subrogation is agreed to by the parties or is
established at the time of hearing before the referee or the
board.
Section 2. This act shall take effect in 60 days.
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