Pennsylvania law allows injured workers to accept employment while receiving workers' compensation benefits, provided the work fits within medical restrictions and workers report all earnings to insurers. Employers can then reduce workers comp wage loss benefits based upon gross earnings.
Taking another job affects benefit calculations differently depending on whether you receive total or partial disability payments, and failing to report income creates overpayment liability and potential fraud penalties.
Kaufman Workers' Compensation Law helps Pennsylvania workers understand how second jobs, light-duty positions, and gig work affect their benefits and reporting obligations. Contact us at (267) 626-2973 for a free consultation about working while receiving workers' compensation.
What to Know About Working While on Workers' Comp in PA
- Pennsylvania workers may accept second jobs while on workers' compensation if the work fits medical restrictions, but all earnings must be reported to insurers who are entitled to reduce wage loss benefits based on these earnings. Failure to report earnings can lead to forfeiture of wage loss benefits and even criminal prosecution.
- If you are receiving wage loss for not working and start working a new job, the comp carrier can reduce your weekly wage loss benefits. You are entitled to receive ⅔ of the difference between your pre-injury average weekly wage and earnings in workers comp.
- Self-employment earnings are dealt with differently and you should discuss these with us to learn if the carrier can reduce your wage loss checks based upon these earnings.
Legal Right to Work While Receiving Workers' Compensation
Pennsylvania workers' compensation law does not prohibit working while receiving benefits. Workers who recover sufficiently to perform jobs within medical restrictions may seek employment. The key is honoring physician-imposed limitations and reporting all income. If you are receiving wage loss benefits, you should always consult with an attorney before accepting a new job.
Reporting Requirements and Benefit Modifications
Pennsylvania law requires workers to report all employment and earnings to workers' compensation insurers. This obligation applies regardless of job type, hours worked, or income amount. Failure to report earnings can stop wage loss benefits and expose you to criminal prosecution.
What Must Be Reported
Workers must disclose several categories of employment information to insurers:
- New employment start dates and employer contact information for verification purposes
- Wage amounts and pay schedules, including hourly rates, salary, tips, and commissions
- Self-employment and gig work income from platforms like Uber, DoorDash, or freelance arrangements
Timely reporting prevents benefit overpayments that create repayment obligations. Workers who delay reporting while continuing to receive full benefits might owe thousands of dollars when insurers discover unreported income.
How Insurers Modify Benefits
Insurance companies reduce or suspend benefits when reported earnings demonstrate increased earning capacity. The modification process involves comparing new wages against pre-injury earnings and recalculating benefit amounts. Insurers issue modification notices explaining adjusted payment amounts and effective dates.
Pennsylvania law allows insurers to credit reported earnings against benefit obligations retroactively to employment start dates.
FAQ About Working While on Workers' Comp in Pennsylvania
What Are the Penalties for Not Reporting Outside Earnings?
Pennsylvania insurers demand repayment of all benefits paid during periods when workers earned unreported income. Deliberately concealing employment to continue receiving benefits may constitute workers' compensation fraud and may carry criminal penalties, including fines and potential imprisonment beyond simple benefit repayment.
Do I Have to Report Income From a Side Job or Gig Work?
Pennsylvania requires reporting all employment income regardless of job type, including gig work through platforms like Uber or DoorDash, freelance arrangements, and cash payments. Failing to report income creates overpayment liability and potential fraud penalties.
Can My Employer Force Me to Accept Light-Duty Work or Lose My Benefits?
Pennsylvania requires workers to accept reasonable light-duty offers that genuinely accommodate medical restrictions and pay appropriate wages. You may decline positions that require you to exceed physician-imposed limitations or offer substantially reduced compensation.
Legal Support for Workers Balancing Employment and Benefits
Employment decisions while receiving workers' compensation benefits involve complex interactions between medical restrictions, benefit calculations, reporting obligations, and earning power assessments, which makes choosing the right lawyer especially important.
Contact Kaufman Workers' Compensation Law at (267) 626-2973 for a free consultation. Jenifer Kaufman, a certified workers’ compensation specialist since 2013, can help you understand your benefits and reporting requirements.