Claimant’s Failure to Complete and Return a Required Wage and Benefit Reporting Form (LIBC-760) Is Not Proper Grounds to Withhold Payment of Benefits Ordered by a Workers’ Compensation Judge.

In this case, the claimant sustained a work injury on June 6, 2017, and subsequently filed a claim petition. Later, a Workers’ Compensation Judge entered an order and stipulation, wherein the employer agreed to pay the claimant benefits for the work injury. Three months later, employer’s counsel contacted claimant’s counsel and advised that payments were not made because an LIBC-760 form that was sent to the claimant had not been completed and returned. The claimant completed the form, and it was returned to employer’s counsel the following day. The claimant then filed a penalty petition, alleging that the employer violated the Act by withholding payment of the judge’s award. 

The judge granted the penalty petition and, in doing so, rejected the employer’s argument that it was permitted to withhold payment based on the claimant’s failure to complete the LIBC-760. On appeal, the Workers’ Compensation Appeal Board affirmed the judge on alternate grounds. The Board pointed out that, even if the employer had been correct, in order to comply with the Act and lawfully suspend the claimant’s benefits, the employer was required to send Form LIBC-762 (Notice of Suspension for Failure to Return LIBC-760), which it did not do. 

In rejecting the employer’s assertion that it should not be subject to a penalty because payment was withheld lawfully, the court noted that the judge’s order of October 18, 2018, directed the employer to make payment to the claimant and payment was not made until March 6, 2019. The court also noted that, while § 311.1 of the Act does permit an insured to suspend compensation where the claimant fails to return a completed LIBC-760 form within 30 days, it does not permit an employer to withhold initial payment for 30 days before it commences the ordered payments. The court agreed and affirmed the Board’s decision that the employer did not comply with § 311.1 (a) or Regulation § 123.502 when it failed to provide a Notification of Suspension to the the claimant. The court affirmed the Board’s decision. 
 

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