What Happens to My Benefits if My Company Closes?

August 24, 2019

Generally, Pennsylvania employees are entitled to continue receiving workers’ compensation benefits until they reach the applicable statutory time limit under the Pennsylvania Workers’ Compensation Act or they have reached maximum medical improvement. However, when companies shut down or employers go out of business, workers are often left wondering whether they will continue to receive their benefits. One of the most common questions our Philadelphia workers’ compensation lawyers get asked is, “What happens to my benefits if my company closes?”

Workers’ Compensation Insurance

Each state has its’ own workers’ compensation system that dictates which employers are required to carry insurance, how the insurance must be purchased, and under what circumstances payments may be disbursed. Workers’ compensation laws vary by state therefore employees should speak to an attorney in their local area to discuss their legal rights and options.

In Pennsylvania, nearly all employers must carry workers’ compensation insurance, which is designed to compensate employees who become injured or ill on the job. They may choose a state-run insurance program, private insurance company, or self-insurance, which they are required to pay into on a regular basis.

Workers’ Compensation Benefits

Benefits are disbursed after the injured employee has filed a claim and the employer has filed either a Notice of Workers’ Compensation Payable or a Notice of Temporary Compensation Payable. Depending on the nature of the injury and circumstances of the case, employees may receive various types of benefits including payment for medical expenses, lost wages, and specific loss awards. Injured workers continue receiving these payments for either the applicable time specified in the statute or until they achieve maximum medical improvement.

Do I Still Get Compensation if My Employer Goes Out of Business?

Even if an employer is no longer in business, the workers’ compensation insurance company is still responsible for making payments. This means that former employees are typically entitled to continue receiving workers’ compensation after their employer shuts down the business. Those who stop receiving payments should contact a qualified workers’ compensation attorney for assistance in negotiating the continuation of payments or a lump sum settlement.

Can I Still File for Unemployment?

Those who, because of their work injury or illness, are unable to apply for work or attend job training may not be eligible for unemployment. Pennsylvania workers may simultaneously collect unemployment and workers’ compensation benefits; however, they may not receive double compensation. Therefore, any payments made under unemployment must be reimbursed by the workers’ compensation insurer and the former employee’s benefits will be adjusted accordingly.

Call Larry Pitt & Associates, P.C. to Speak to a Qualified Workers’ Comp Lawyer in Philadelphia

If your company closed and you experienced an interruption in benefits payments, contact a workers’ comp lawyer in Philadelphia at Larry Pitt & Associates, P.C. You may be entitled to a reinstatement of your payments regardless of whether your employer went out of business. Our skilled attorneys can help ensure that your rights are protected, fight to get your benefits reinstated, or negotiate a settlement. For a free consultation, please complete our online contact form or call us at 888-PITT-LAW.

We represent injured workers in Berks CountyBucks CountyChester CountyDelaware CountyMontgomery CountyPhiladelphia County and throughout Pennsylvania including those in the communities of AbingtonAmblerArdmoreBala CynwydBensalemClifton HeightsCrum Lynne, DarbyDowningtownDoylestownDrexel HillEssington, FolcroftGlenolden, HaverfordHavertownHolmesKutztown, Lansdowne, Media, Merion StationMorton, Narberth, Norristown, NorwoodPhiladelphiaProspect Park, QuakertownReadingRoxboroughSharon HillUpper Darby, West Chester, and Wynnewood.