How Acts 534 and 632 Affect Workers’ Comp

Video Transcript:
Hello. My name is Mike Dryden. I’m the head of the workers’ compensation department at Willig, Williams & Davidson. I’m here today to talk about Act 534 and 632 benefits. Act 534, and act 632 are the same law. They apply to different bargaining units. They provide a different type of workers’ compensation for employees of the Bureau of Corrections, Department of Justice, who were injured at the hands of an inmate. They also cover The Department of Public Welfare employees who are injured at the hands of an individual, or someone who’s been adjudicated to a youth development center. They also cover County Board of Assistants, employees, who are injured in certain circumstances at 534 and 632. Benefits provide 100% of pay with no taxes deducted from your base salary.

Now, that amount is calculated as of the date of your injury. So, if you’re injured in 2024, you’re going to get 100% of your salary with no taxes taken out of it as of 2024. It does not increase over time. So that amount of money is going to be the amount of money that you’re going to get. However, act 534 and act 632 do provide an important benefit to state employees with regard to health insurance, pension contributions, and accrued service time under the Pennsylvania Worker’s Compensation Act, which is still something that the employer has to deal with.

It’s a right that you have, even if you’re on 534, you’re still covered by the Worker’s Compensation Act. It is a dual entitlement, but you get paid through act 534 until 534 stops, and then worker’s compensation would kick in. But, the worker’s comp law does not guarantee you accrued leave time, does not make a pension contribution.

Most times collective bargaining agreements only allow you to be out so long on worker’s compensation before you’re no longer an employee. The real positive to act 534 and act 632 is under those laws, you’re still an employee. They can only take you off of act 534 or act 632 if you fully recover, if you retire, or you’re physically capable of returning to your bargaining unit, if none of those things happen, they have to keep paying that 100% salary payment to you as you earn pension contributions, as you earn accrued time, and as you continue to have health insurance for your family.

Routinely, I receive phone calls from state employees who are asked to settle their right to worker’s compensation and act 534 or 632 benefits. And many of these settlements are woefully inadequate because they are not taking into account the pension benefit that you’re getting, the accrued time benefit you’re getting, and maybe most significantly, the health insurance for you and your family that you will be asked to waive if you settle your case through the worker’s compensation system.

If you have any questions about act 534 or act 632 before you act, we strongly encourage you to contact us so that we can discuss your status and what’s best for you and your family with this, law. Thank you.