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.

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
 1   Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An
 2      act defining the liability of an employer to pay damages for
 3      injuries received by an employe in the course of employment;
 4      establishing an elective schedule of compensation; providing
 5      procedure for the determination of liability and compensation
 6      thereunder; and prescribing penalties," in liability and
 7      compensation, further providing for compensable injuries,
 8      subrogation and proration.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    Section 319 of the act of June 2, 1915 (P.L.736,
12   No.338), known as the Workers' Compensation Act, is amended to
13   read:
14      Section 319.    Where the compensable injury is caused in whole
15   or in part by the act or omission of a third party, the employer
16   shall be subrogated to the right of the employe, his personal
17   representative, his estate or his dependents, against such third
18   party to the extent of the compensation payable under this
19   article by the employer; reasonable attorney's fees and other
20   proper disbursements incurred in obtaining a recovery or in
21   effecting a compromise settlement shall be prorated between the
 1   employer and employe, his personal representative, his estate or
 2   his dependents. The employer shall pay that proportion of the
 3   attorney's fees and other proper disbursements that the amount
 4   of compensation paid or payable at the time of recovery or
 5   settlement bears to the total recovery or settlement. Any
 6   recovery against such third person in excess of the compensation
 7   theretofore paid by the employer shall be paid forthwith to the
 8   employe, his personal representative, his estate or his
 9   dependents, and shall be treated as an advance payment by the
10   employer on account of any future [instalments of] compensation.
11      Where an employe has received payments for the disability or
12   medical expense resulting from an injury in the course of his
13   employment paid by the employer or an insurance company on the
14   basis that the injury and disability were not compensable under
15   this act in the event of an agreement or award for that injury
16   the employer or insurance company who made the payments shall be
17   subrogated out of the agreement or award to the amount so paid,
18   if the right to subrogation is agreed to by the parties or is
19   established at the time of hearing before the referee or the
20   board.
21      Section 2.   This act shall take effect in 60 days.




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