The Pennsylvania Workers’ Compensation Act has taken a significant step toward modernizing wage-loss benefit payments. Under SB 1232 (Act 126), all employers and insurers must offer direct deposit as a payment option for indemnity benefits by December 28, 2025.
This mandate is designed to reduce reliance on paper checks, speed up payments to injured workers, and improve compliance oversight.
Key Requirements:
- Deadline: Employers and insurers must implement a direct deposit system by December 28, 2025.
- Notification: Claimants must be informed of this option upon its availability or issuance of a Notice of Compensation Payable.
- Form Submission: Claimants must complete and submit an authorization form (LIBC-215) to initiate direct deposit.
- Turnaround: Direct deposit must begin within 45 days of receiving a valid authorization.
- Fallback: If no form is received within 30 days, payments must be made via paper check until authorized.
Special Considerations:
- Lump sum settlements may still be paid by check unless otherwise agreed.
- Claims expected to last 60 days or less can be paid by check unless the claimant has an existing direct deposit setup.
What This Means for Payers
Payers operating in Pennsylvania should act now to ensure compliance:
- Develop or validate a secure and streamlined direct deposit system.
- Update claimant communications and internal workflows.
- Prepare to manage direct deposit changes and exceptions.
How Jopari Can Help
Jopari Solutions has over 20 years of experience providing secure, compliant, and integrated direct deposit solutions for both healthcare and indemnity workers’ compensation payments.
Our flexible platform enables:
- Timely and trackable wage-loss payments
- Electronic authorization management, including support for state forms and customizable portals
- Seamless integration with existing systems for faster implementation and claimant enrollment
Want to be ready before the December 28, 2025 deadline?
Let Jopari help you meet Pennsylvania’s new requirement—and modernize your payment experience in the process.
