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New Pennsylvania Workers’ Compensation Laws Expand Mental Health Coverage for First Responders, Require Direct Deposit

Published on

November 4, 2024

Governor Shapiro signed two bipartisan workers’ compensation bills into law last week on October 29, 2024. The first bill expands coverage for first responders suffering from post-traumatic stress injury, and the second bill requires workers’ compensation carriers to provide a direct deposit option for disability benefits.

Coverage for post-traumatic stress injury suffered by first responders
Under the Pennsylvania Workers’ Compensation Act, an injured worker seeking benefits for post-traumatic stress injury (“PTSI”) generally must demonstrate that the mental health injury was suffered during “abnormal working conditions.” Senate Bill 365, now Act 121 of 2024, eliminates that requirement but limits compensable PTSI injuries to “qualifying traumatic events,” defined as those (1) resulting in serious bodily injury or death to another individual, (2) involving a minor who has been injured, killed, abused, or exploited, (3) involving an immediate threat to the life of the injured worker or another individual, (4) involving mass casualties, or (5) involved in responding to crime scenes for investigations. To be compensable, the PTSI must also be diagnosed by a licensed psychiatrist or psychologist. Benefits are available during the duration of the injury but limited to no more than 104 weeks. The statute goes into effect October 30, 2025, but applies to injuries sustained up to five years earlier.

Direct deposit requirement
Senate Bill 1232, now Act 126 of 2024, requires insurers to provide a direct deposit option for disability benefits by October 30, 2025, and further requires insurers to notify injured workers of this option. Insurers may require direct deposit or may merely present it as an option, though insurers must continue to provide paper checks to injured workers who do not have an account with a financial institution capable of accepting direct deposit. Direct deposit would be subject to typical authorization forms.

The upshot, of course, is that insurers that do not currently offer direct deposit must update their systems within a year to ensure the availability of that option.

The Barley Snyder Employment Practice Group can assist you in managing issues involving injured workers and your responsibilities under the Pennsylvania Workers’ Compensation Act. If you have any questions or concerns, please reach out to partner Joshua L. Schwartz – chair of our Workers’ Compensation practice – or any member of our Employment Practice Group.


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