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Workers' Comp Settlements in Pennsylvania

Whether a workers' comp claim can be settled in Pennsylvania, who must approve the settlement, and how long benefits can last.

Short answer: Yes. The parties may compromise and release any and all liability under the Act through a written agreement (a "compromise and release by stipulation"). Pennsylvania Workers' Compensation Act § 449 (77 P.S. § 1000.5)

SettlementsYes. The parties may compromise and release any and all liability under the Act through a written agreement (a "compromise and release by stipulation"). After a petition is filed, the signed agreement is submitted to a workers' compensation judge, who considers it in an open hearing. The judge may not approve it unless satisfied that the injured worker understands the full legal significance of the agreement, and the agreement must state clearly whether medical expenses will be paid. The worker's signature must be witnessed by two people or notarized. Hearings are expedited, and the decision is due within 30 days.
Act compilation published by the PA Department of Labor & Industry.
How long benefits lastTotal disability status has no fixed week limit while the worker is totally disabled, but after 104 weeks of total disability benefits the employer or insurer can require an impairment rating evaluation. If the worker's impairment is under 35 percent, the worker's status can change to partial disability. Partial disability benefits are paid for a maximum of 500 weeks; under the Act, weeks already paid as total disability do not reduce that 500-week period. A worker on partial status who later gets a qualifying impairment rating of 35 percent or more may petition to be reinstated to total disability.
The 35 percent threshold is taken from the department's LIBC-100 brochure (rev. 10-24). The Act compilation posted on pa.gov (regulations/wc/act.pdf) still shows an older 50 percent figure in section 306(a.2), so it appears not to reflect later amendments.
Lawyer fees in comp casesAttorney fee agreements in Pennsylvania workers' compensation cases must be approved by a workers' compensation judge or the Workers' Compensation Appeal Board, and counsel fees may not exceed 20 percent of the amount awarded. Where counsel gets a favorable result but no immediate award (such as termination or suspension cases), the judge awards reasonable agreed fees without regard to the percentage. In compromise and release settlements, fees may not exceed 20 percent of the settlement amount. You may represent yourself, but a non-attorney can't represent you.
LIBC-100: https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/individuals/workers-compensation/publications/documents/libc-100.pdf

Where to get help in Pennsylvania

More Pennsylvania workers' compensation

FAQ

How do workers' comp settlements work in Pennsylvania?
Yes. The parties may compromise and release any and all liability under the Act through a written agreement (a "compromise and release by stipulation"). After a petition is filed, the signed agreement is submitted to a workers' compensation judge, who considers it in an open hearing. The judge may not approve it unless satisfied that the injured worker understands the full legal significance of the agreement, and the agreement must state clearly whether medical expenses will be paid. The worker's signature must be witnessed by two people or notarized. Hearings are expedited, and the decision is due within 30 days.
How long can you receive workers' comp in Pennsylvania?
Total disability status has no fixed week limit while the worker is totally disabled, but after 104 weeks of total disability benefits the employer or insurer can require an impairment rating evaluation. If the worker's impairment is under 35 percent, the worker's status can change to partial disability. Partial disability benefits are paid for a maximum of 500 weeks; under the Act, weeks already paid as total disability do not reduce that 500-week period. A worker on partial status who later gets a qualifying impairment rating of 35 percent or more may petition to be reinstated to total disability.
How much can a workers' comp lawyer charge in Pennsylvania?
Attorney fee agreements in Pennsylvania workers' compensation cases must be approved by a workers' compensation judge or the Workers' Compensation Appeal Board, and counsel fees may not exceed 20 percent of the amount awarded. Where counsel gets a favorable result but no immediate award (such as termination or suspension cases), the judge awards reasonable agreed fees without regard to the percentage. In compromise and release settlements, fees may not exceed 20 percent of the settlement amount. You may represent yourself, but a non-attorney can't represent you.

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.