DIRECT DEPOSIT IS NOW AVAILABLE FOR WORKERS’ COMP PAYMENTS

Workers often complain that their workers’ compensation checks are late.  Sometimes the employer or insurance company didn’t issue the check on time or because the payment schedule is irregular.  However, it is not uncommon for checks to be delayed, lost, sent to the wrong address, or misdirected in the mail.

Effective July 1, 2021 workers are entitled to delivery of their checks via Direct Deposit.  Employers and insurers are required to provide a “Notice and Election Form” where the worker can choose to receive payment by direct deposit.  This will eliminate mailing delays and should also help clarify payment schedules and amounts.

The direct deposit rule does not change the time frames employers and insurers have to pay compensation.  Payments made as a result of a formal award by the Workers’ Compensation Board must still be issued within 10 days of the date the decision was filed, unless there is an appeal.  If the employer or insurer files an appeal, then it is not required to pay the award until the appeal is decided.  Installment payments for time out of work are required to be issued within 25 days from the date of the period covered by the previous check.

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