Insight

Pennsylvania Supreme Court Issues Landmark Workers’ Compensation Decision

The claimants’ workers’ compensation bar in Pennsylvania scored a significant victory when the state’s high court issued its decision in Protz v. WCAB.

Pennsylvania Workers' Comp

Dave Brown

January 5, 2018 11:33 AM

The claimants’ workers’ compensation bar in Pennsylvania scored a significant victory when the state’s high court issued its decision in Protz v. WCAB in June 2017. In Protz, the Supreme Court took the unusual step of declaring a statute unconstitutional.

In 1996, the Pennsylvania General Assembly passed legislation, revamping the Workers’ Compensation Act. One part of the new law was Section 306 (a.2), which provided a weapon for employers to limit their exposure on injured workers’ claims. Pursuant to this section, after a claimant had received total disability for 104 weeks, the employer was entitled to obtain an Impairment Rating Evaluation (IRE). If the physician performing the evaluation determined that the claimant’s whole-body impairment rating was less than 50 percent according to the most recent edition of the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment and the injured worker had reached maximum medical improvement, benefits were converted from total disability to partial disability and capped at 500 weeks.

The AMA guidelines were such that, unless a person had catastrophic injuries, the impairment rating inevitably came in at less than 50 percent, and by simply filing a petition, the claimant’s benefits were limited to 500 additional weeks.

The claimant’s bar maintained that the impairment rating process was patently unfair, especially for a person who sustained injuries not so devastating enough that the impairment rating would exceed 50 percent, yet serious enough that the person was unable to work. In view of Section 306 (a.2), these claimants faced the expiration of their benefits in 500 weeks.

Protz was the death knell for the IRE process. In that case, after a physician found a 10 percent impairment rating for the claimant, the employer filed a petition and the workers’ compensation judge modified benefits from total to partial, thereby establishing the 500-week cap. The claimant’s appeal went up to one of Pennsylvania’s intermediate appellate courts, the Commonwealth Court. The claimant’s counsel argued that Section 306 (a.2) constituted an unconstitutional delegation of authority by the General Assembly contending that this provision afforded the AMA the authority to establish the criterion under which a claimant is adjudicated partially or totally disabled. The claimant’s counsel also attacked the language in Section 306 (a.2) that the IREs would be performed “under the most recent edition” of the AMA guidelines, noting that when the statute was enacted in 1996, the fourth edition was in place, but 20 years later, the AMA Guides had undergone two revisions, and the current version—the sixth edition—provided much different standards that the prior editions. The Commonwealth Court held that because the General Assembly had failed to review and re-adopt the methodology contained in subsequent editions of the AMA guidelines, the statute was unconstitutional insofar as it proactively approved versions of the AMA Guides after the fourth edition without conducting the necessary review.

The Supreme Court took the Commonwealth Court’s holding one big step further: it declared the entire statute governing the IRE provision unconstitutional. Justice David Wecht, writing for the majority, emphasized that Article II, Section 1 of the Pennsylvania Constitution vests legislative power in the General Assembly exclusively; it cannot delegate the authority to another branch of government or any private entity, such as the AMA. The Supreme Court held that in enacting Section 306 (a.2), the General Assembly impermissibly gave the AMA de facto unfettered control over a formula that ultimately determined whether a claimant’s benefits would cease after 500 weeks. The Commonwealth Court’s remedy of directing physicians to perform IREs under the fourth edition was not enough; the Supreme Court struck down the entire statue as unconstitutional.

The ruling has spawned a spate of petitions. Claimants whose benefits were converted from total to partial based on a less than 50 percent impairment rating have filed petitions based on Protz, and workers’ compensation judges have changed their statuses back to total disability, which lifted the 500-week cap in their benefits. Employers who have filed petitions based on sub-50 percent IREs performed before the Supreme Court’s June 2017 decision have been obliged to withdraw their petitions. So Protz was a big win for Pennsylvania workers’ compensation claimants.

--------------------------

Dave Brown has 25 years’ experience as a lawyer and joined Pearson Koutcher after six years of devoting his practice primarily to workers’ compensation. At Pearson Koutcher, Dave handles workers’ compensation matters of all types and levels of complexity, and chose the firm because of its outstanding reputation in advocating for injured workers. To contact Dave, please call 215-627-0700 or email him at dave@pearsonkoutcherlaw.com. For more information on workers’ compensation, visit Pearson Koutcher’s website at www.pearsonkoutcherlaw.com.

Related Articles

Announcing the 2022 Best Lawyers: The Employment Law Issue


by Best Lawyers

Featuring the top legal talent from The Best Lawyers in America, Best Lawyers: Ones to Watch in America and “Lawyer of the Year” recipients for Labor and Employment Law, Workers’ Compensation Law, ERISA Law and Ethics and Professional Responsibility Law.

Best Lawyers Employment Law Publication

Pennsylvania’s Best Lawyers 2022


by Best Lawyers

Our Pennsylvania’s Best Lawyers 2022 digital publication features top-ranked legal talent in Pennsylvania.

Pennsylvania’s Best Lawyers 2022

Howard Bruce Klein - Philadelphia 2020 Lawyer of the Year


by Best Lawyers

Qui Tam Law Philadelphia, PA

Howard Bruce Klein

Turning Down the Heat


by Janice Zhou

What sort of legal and legislative action is necessary to help put Pennsylvania on the front lines of the battle against climate change?

Depleting Natural Resources in Pennsylvania

Tried and Tested


by Johanna Marmon

Victor Pribanic has been securing justice for wronged individuals for more than four decades.

Victor Pribanic Best Lawyers 2020

One Reason Why Uber Is Fighting to Classify Drivers as Contractors


by Stephen Hasner

How Workers' Compensation Is Setting Up a Legal Battle

 Why Uber Wants Drivers as Contractors

In the News: Pennsylvania


by Best Lawyers

A legal news roundup of listed lawyers in Pennsylvania.

Pennsylvania Legal News Roundup

Teamwork and Strategy


by Justin Smulison

In 2018, Block O'Toole & Murphy continued to secure multimillion-dollar results for injured victims and workers.

Block O'Toole & Murphy Gets Results

Education by Trial: Cultivating Legal Expertise in the Courtroom


by Margo Pierce

The intricacies of complex lawsuits require extensive knowledge of the legal precedent. But they also demand a high level of skill in every discipline needed to succeed at trial, such as analyzing technical reports and deposing expert witnesses.

Cultivating Legal Expertise in the Courtroom

The Workers’ Compensation System as a Prescription for Addiction


by Karen Gail Treece

While estimates vary, it is believed that the top 5 percent of opioid users likely account for more than half of total opioid use.

Prescription for Addiction

Colorado Broadens Scope of Workers’ Comp, but There’s More to Be Done


by Nick Fogel

When the law goes into effect in July, Colorado will join 32 other states in allowing PTSD claims for first responders without a physical component to the claim.

Colorado Workers' Compensation

Key Minnesota Workers’ Compensation Cases of 2017


by Thomas P. Kieselbach

A rundown of important workers' compensation cases in Minnesota over the past year.

Minnesota Workers' Compensation

Trending Articles

The 2024 Best Lawyers in Spain™


by Best Lawyers

Best Lawyers is honored to announce the 16th edition of The Best Lawyers in Spain™ and the third edition of Best Lawyers: Ones to Watch in Spain™ for 2024.

Tall buildings and rushing traffic against clouds and sun in sky

Best Lawyers Expands Chilean 2024 Awards


by Best Lawyers

Best Lawyers is pleased to announce the 14th edition of The Best Lawyers in Chile™ and the inaugural edition of Best Lawyers: Ones to Watch in Chile™, honoring the top lawyers and firms conferred on by their Chilean peers.

Landscape of city in Chile

The Best Lawyers in Spain™ 2023


by Best Lawyers

Announcing Spain's recognized lawyers for 2023.

Flag of Spain

Announcing The Best Lawyers in South Africa™ 2024


by Best Lawyers

Best Lawyers is excited to announce the landmark 15th edition of The Best Lawyers in South Africa™ for 2024, including the exclusive "Law Firm of the Year" awards.

Sky view of South Africa town and waterways

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

The Best Lawyers in Portugal™ 2024


by Best Lawyers

The 2024 awards for Portugal include the 14th edition of The Best Lawyers in Portugal™ and 2nd edition of Best Lawyers: Ones to Watch in Portugal™.

City and beach with green water and blue sky

The Best Lawyers in Peru™ 2024


by Best Lawyers

Best Lawyers is excited to announce the landmark 10th edition of The Best Lawyers in Peru, the prestigious award recognizing the country's lop legal talent.

Landscape of Peru city with cliffside and ocean

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

The Best Lawyers in Chile™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms in Chile.

White star in blue box beside white box with red box on bottom

The Best Lawyers in Colombia™ 2024


by Best Lawyers

Best Lawyers is honored to announce the 14th edition of The Best Lawyers in Colombia™ for 2024, which honors Colombia's most esteemed lawyers and law firms.

Cityscape of Colombia with blue cloudy sky above

Announcing the 2024 Best Lawyers in Puerto Rico™


by Best Lawyers

Best Lawyers is proud to announce the 11th edition of The Best Lawyers in Puerto Rico™, honoring the top lawyers and firms across the country for 2024.

View of Puerto Rico city from the ocean

The 2023 Best Lawyers in Portugal™


by Best Lawyers

Announcing the elite group of lawyers recognized in Portugal for 2023.

Green and red Portuguese flag

Unwrapping Shrinkflation


by Justin Smulison

Through the lens of the United States, we take a closer look at the global implication of companies downsizing products while maintaining and often raising prices.

Chocolate bar being unwrapped from foil

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

2021 Best Lawyers: The Global Issue


by Best Lawyers

The 2021 Global Issue features top legal talent from the most recent editions of Best Lawyers and Best Lawyers: Ones to Watch worldwide.

2021 Best Lawyers: The Global Issue

Announcing the 2023 The Best Lawyers in Canada Honorees


by Best Lawyers

The Best Lawyers in Canada™ is entering its 17th edition for 2023. We highlight the elite lawyers awarded this year.

Red map of Canada with white lines and dots