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What's Hot in Workers' Comp

TOP 10 DEVELOPMENTS IN PENNSYLVANIA WORKERS’ COMPENSATION IN 2025

What’s Hot in Workers’ Comp, Vol. 29, No. 12, December 2025

December 1, 2025

by Francis X. Wickersham

1.    Pennsylvania Supreme Court holds that the compensation rate for specific loss benefits is controlled by Section 306(c) of the Act, not Section 306(a)
Jennifer Jackiw v. Soft Pretzel Franchise, 329 A.3d 1152 (Pa. Cmwlth. 2025) 

The claimant crushed her arm in a pretzel machine at work and needed it amputated. She and her employer agreed that this injury was a specific loss of the forearm, entitling her to compensation benefits for 390 weeks total: 370 weeks paired with 20 weeks of a healing period. The parties disagreed on how to calculate the weekly benefit amount. The claimant claimed that the employer’s position on her compensation rate, rooted in Section 306(a) of the Act, was too low. She argued that Section(c)(25) for specific loss benefits should apply. The workers’ compensation judge found that Section 306(a) should apply, and the Appeal Board and the Commonwealth Court affirmed. However, the Supreme Court reversed, finding that Section 306(c) was the proper formula for calculating the compensation rate for loss of use of a forearm. The court held that the General Assembly intended for the Act to utilize one formula for calculating total disability benefits and another for calculating specific loss benefits. 

 

2.    Pennsylvania Supreme Court: Treatment plan items, including cannabinoid oil, count as “medicines and supplies”; cost rules apply to providers, not claimants
Mark R. Schmidt v. Schmidt, Kirifides & Rassias, P.C., 333 A.3d 310 (Pa. 2025)

The claimant sustained a lower back injury while loading files into a trial bag. The workers’ compensation judge found that this aggravated the claimant’s pre-existing degenerative disc disease. The claimant filed a Penalty Petition against the employer for not covering his out-of-pocket expenses for CBD products to treat pain. The judge granted the petition, deeming CBD oil a “supply” under Section 306(f1)(1)(i) of the Act. Upon the employer’s appeal, the Appeal Board held that CBD oil is not a “supply” without FDA approval and the claimant did not provide necessary bills and records for payment. The Supreme Court affirmed what the Commonwealth Court held on appeal, that CBD oil is a “medicine” and “supply” under the Act, and said Act mandates providers to submit bills on specified forms for payment, not employees. Further, the Act does not require FDA approval for a “supply.” Thus, the claimant was entitled to full reimbursement from the employer for his out-of-pocket expenses. 

 

3.    Pennsylvania Supreme Court holds that a specific loss award is survivable and payable to claimant’s estate, even though claimant’s death was related to work injury 
Kristina Steets v. Celebration Fireworks, Inc., 335 A.3d 1076 (Pa. 2025)

The workers’ compensation judge granted the claimant’s Claim and Review Petitions that requested specific loss benefits, and the Appeal Board and Commonwealth Court affirmed. However, the claimant died from her injuries while the decision from the Commonwealth Court was pending. The claimant’s estate filed petitions seeking payment of the specific loss award by the judge that was under appellate review when the claimant died. The judge denied the estate’s petitions, notwithstanding the claimant’s funeral expenses. The Board and Commonwealth Court affirmed, but the Supreme Court reversed, holding that the decedent’s pending benefits were survivable and payable to her estate. Per Sections 306, 307 and, in particular, the plain language in 410 of the Act, specific loss benefits may be awarded after a death caused by a work-related injury where benefits are pending at the time of the claimant’s death. 

 

4.    Commonwealth Court upholds employer’s full subrogation lien; refusal to negotiate not bad faith
Martha Garduno Mondragon v. Jo Jo Pizza, 329 A.3d 790 (Pa. Cmwlth. 2025) 

The claimant sustained slip and fall injuries on ice in the employer’s parking lot. Her Claim Petition was granted, and the workers’ compensation case was settled by a Compromise and Release Agreement (C&R), which recognized the employer’s right to subrogation against the property owner to the extent of the employer’s lien. Claimant’s counsel then began negotiations with the employer to voluntarily release its lien. However, the employer declined and filed a petition to recover its full lien. The employer also filed a petition in civil court to enforce a judge’s subpoena for the claimant to produce all copies of checks, releases and distribution sheets, which the claimant refused to do. The trial court held claimant’s counsel in civil contempt for willful noncompliance with the subpoena, and the Commonwealth Court rejected the claimant’s appeal, remanding the case to the workers’ compensation judge. The judge granted the employer’s petition, and the Appeal Board affirmed. The Commonwealth Court affirmed, holding that the employer’s refusal to reduce or negotiate its subrogation lien does not constitute bad faith, emphasizing that the claimant agreed in the C&R that the employer’s subrogation lien was intact.

 

5.    In seeking to add a distinct, consequential injury to NCP and to reinstate indemnity payments for related disability, petitions must be filed within three years of the date of most recent compensation payment, per Section 413(a) of the Act
Matthew Grow v. PECO Energy Company (WCAB), 329 A.3d 819 (Pa. Cmwlth. 2025) 

The claimant sustained a neck injury at work in 2013, and the employer suspended his benefits upon his return to work in 2014. The claimant underwent cervical surgery in 2021 and filed Reinstatement and Review Petitions in 2022. The workers’ compensation judge granted the petitions, and upon the employer’s appeal, the Appeal Board reversed. The claimant appealed, and the Commonwealth Court affirmed the Board’s decision, concluding that the claimant was untimely in filing the petitions. The court held that the 2021 surgery, while related to the accepted work injury of contusions and fractures at the C3-C4 level, was a distinct and consequential injury. Thus, the claimant had to file his petitions within three years of the date of the most recent compensation payment, which he did not file.

 


6.    Claimant’s receipt of administrative time while out on leave for COVID-19 is not payment in lieu of workers’ compensation benefits 
Jaime Brown v. City of Philadelphia (WCAB), 330 A.3d 12 (Pa. Cmwlth. 2025) 

The claimant, a police officer, was out of work for a work-related physical injury. The day after his November 3, 2020, return to work, he claimed that he contracted COVID-19 while in the office. He was off from work from November 4, 2020, until April 1, 2022; and at no point did he file a Claim Petition for COVID-19. While on leave, he received full pay without depleting sick or vacation time and was under the impression that his time off equated “E-time” (“excused time”/ET), which ended on March 5, 2022; from March 5 to April 1, 2022, the claimant received his normal salary through accrued vacation time. The employer then filed a Notice of Compensation Denial for the alleged COVID-19 exposure. The workers’ compensation judge dismissed the claimant’s Reinstatement and Penalty Petitions, finding that the ET payroll designation did not constitute payment of wages in lieu of workers’ compensation, that the employer did not intend to use ET pay as an agreement to pay workers’ compensation benefit and that discontinuation of ET did not constitute a unilateral cessation of benefits. The claimant appealed, and the Appeal Board and the Commonwealth Court affirmed, stating COVID-19 counts as E-time, regardless of whether the exposure is work-related. 

 

7.    Payments made by an employer to a claimant for a COVID-19 diagnosis were not in lieu of workers’ compensation’ therefore, unilaterally stopping them does not violate the Workers’ Compensation Act 
William Bolds v. City of Philadelphia, 333 A.3d 765 (Pa. Cmwlth. 2025) 

The claimant alleged that he contracted COVID-19 while working as a police officer in May 2020. He designated his time off from work due to COVID-19 as “E-Time” (“excused time”/ET), and he received full salary, with no loss of sick or vacation time. Payments continued through March 5, 2022, at which point the claimant began using accrued sick/vacation time. He did not return to work. On January 31, 2022, the claimant filed Reinstatement and Penalty Petitions, alleging the employer unilaterally terminated benefits in January 2022 and paid wages in lieu of workers’ compensation benefits. The employer filed a Notice of Workers’ Compensation Denial, denying liability for work-related COVID-19. The workers’ compensation judge denied the claimant’s petition, holding that payments made under E-Time do not constitute the employer’s agreement that the claimant had a work-related COVID-19 diagnosis. On appeal, the Appeal Board affirmed, as did the Commonwealth Court, which held that the employer’s signing off on E-Time was intended to protect workers as an emergent response to COVID-19 in 2020, regardless of whether the disability was work-related.

 

8.    Commonwealth Court: no reimbursement mechanism for insurers’ overpayments to pharmacies under Workers’ Compensation Act
Pioneer Construction Company, Inc., Eastern Alliance Insurance Company, and Employers Alliance, Inc. v. Insight Pharmaceuticals, LLC d/b/a Insight Pharmacy, 338 A.3d 234 (Pa. Cmwlth. 2025) 

A workers’ compensation carrier (the insurer) filed a Petition to Review Medical Treatment and/or Billing (Billing Review Petition), seeking reimbursement for an overpayment they made to a pharmacy for compound pain creams previously found to be not reasonable or necessary for treatment of the claimant’s work injury in a prior Utilization Review (UR) Determination. The insurer argued that the workers’ compensation judge had equitable powers under the Act to order the reimbursement. The pharmacy argued the judge lacked jurisdiction to order the reimbursement as the pharmacy could not be a party to the UR and that the Act contained no reimbursement provision for insurers who overpay providers. The judge granted the petition. The insurer then filed an enforcement action in the Court of Common Pleas, and the pharmacy’s motion to dismiss the action was denied. The pharmacy appealed to the Commonwealth Court, which held that because the pharmacy was not, and could not be, a party to the UR and the judge’s proceedings, the trial court erred by not striking the judgment against the pharmacy. The court further held that the reimbursement awarded by the judge was not contemplated by the Act, even as a matter of equity. The court said there was no mechanism in the Act, either expressly or by implication, for an employer/insurer to recoup monies it mistakenly paid or overpaid to a pharmacy.

 

9.    Commonwealth Court affirms claimant’s electrocution injury; employer received timely and adequate notice under Sections 311 and 312 of the Act
Kimberly-Clark Mill v. William Moss, Jr. (WCAB), 344 A.3d 443 (Pa. Cmwlth. 2025) 

The claimant worked for the employer for 17 years as a machine operator and firefighter. He filed a Claim Petition alleging he was electrocuted in 2018 while vacuuming at work, causing severe tremors and worsening tremors from a prior work-related electrocution in 2013. The workers’ compensation judge granted the Claim Petition, and the Appeal Board affirmed. The employer then appealed to the Commonwealth Court, primarily arguing that the claimant failed to establish that he gave timely notice of his work injury. The court, however, rejected this argument and dismissed the appeal, holding that under Sections 311 and 312 of the Act, which work together as to the timing and content of notice, the employer was provided with information concerning the time and place of injury, that it occurred at work and that a reasonable description of the injury was given.


 
10.    Commonwealth Court recognizes firefighter’s PTSD claim; infant CPR incidents were a singular, extraordinary event and deemed an abnormal working condition
Brian Ganley v. Upper Darby Township (WCAB), --- A.3d ---, (Pa. Cmwlth. 2025)

In his job as a firefighter, the claimant experienced two events within a period of roughly two and a half years in which he performed cardiac pulmonary resuscitation (CPR) on infants, both of whom were not resuscitated. The first event involved a two-week-old infant, and the claimant suffered mental issues related to the incident but continued working for the employer. The second incident involved a nine-month-old infant brought to the fire station who was not breathing. The claimant’s mental health symptoms from the first incident worsened after the second, and the claimant filed a Claim Petition, alleging he sustained post-traumatic stress disorder (PTSD). The workers’ compensation judge dismissed the petition, finding that administering CPR was not an abnormal working condition. The Appeal Board affirmed, but the Commonwealth Court reversed, holding that the incidents collectively were a singular, extraordinary event and, thus, constituted an abnormal working condition. 


What’s Hot in Workers’ Comp, Vol. 29, No. 12, December 2025 is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2023 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

The Search-Incident-to-Arrest Doctrine Does Not License Strip Searches

In Beatty v. Gardner, No. 25-2860 (3d Cir. Sept. 16, 2026), Kyle Beatty sued police officers Clinton Gardner and Calvin Irvin under 42 U.S.C. § 1983 after they stopped, arrested, and searched him three times during a drug investigation in Williamsport, Pennsylvania. The officers initially smelled marijuana coming from the car in which Beatty was sitting and observed marijuana residue, giving them probable cause to arrest him. Beatty consented to the first pat-down, and the second search was conducted incident to his lawful arrest; neither search uncovered weapons or contraband. The officers then transported Beatty to the police station solely to strip-search him, but the strip search also revealed nothing. The District Court granted the officers summary judgment, concluding that the initial stop, arrest, and first two searches were reasonable and that qualified immunity protected the officers from liability for the strip search. The Third Circuit affirmed, but held that the strip search itself violated the Fourth Amendment. The court concluded that the search-incident-to-arrest doctrine does not automatically permit officers to strip-search an arrestee outside the jail or prison setting. Because strip searches are highly intrusive and the traditional justifications for searches incident to arrest (officer safety and preservation of evidence) did not justify the search of Beatty, the officers generally needed either the arrestee’s consent, exigent circumstances, or a warrant supported by probable cause to believe that a search beneath the clothing would reveal weapons, contraband, or evidence. Here, the officers had none of those justifications. Nevertheless, the court held that qualified immunity barred damages liability because, at the time of the search, the right against a warrantless strip search of an arrestee outside the institutional setting was not clearly established by Supreme Court or Third Circuit precedent. The court likewise upheld qualified immunity on Beatty’s First Amendment retaliation claim and affirmed summary judgment for the officers.

Thought Leadership

Pennsylvania Supreme Court to Review Whether Legal Malpractice Claims May Be Recast as Breach of Contract Claims

The Pennsylvania Supreme Court recently granted allowance of appeal to consider whether a plaintiff may pursue a breach of contract claim against an attorney based on allegations that the attorney failed to provide competent legal services. The issue is significant in professional liability litigation because it concerns whether a plaintiff may avoid the statute of limitations applicable to professional negligence claims by characterizing the alleged misconduct as a breach of contract. Antoine Poteat retained attorneys Gary Asteak and Nino V. Tinari to represent him in a criminal matter. After his conviction was subsequently overturned through a Post Conviction Relief Act proceeding, Poteat filed suit against his former attorneys alleging that they breached their retainer agreements by failing to provide competent legal services. The attorneys argued that the claims sounded in professional negligence, rather than breach of contract, and were therefore time-barred. The trial court dismissed Poteat’s complaint, but the Superior Court, sitting en banc, reversed. The Superior Court held that the gist-of-the-action doctrine did not bar Poteat’s breach of contract claim because the alleged failure to provide competent legal services could constitute a breach of the parties’ agreement. The Court further held that a legal-services agreement contains an implied duty requiring an attorney to provide competent legal services, even where the agreement does not contain an express provision requiring such services. The Pennsylvania Supreme Court granted review in July 2026 and will consider whether the Superior Court’s decision conflicts with Pennsylvania precedent distinguishing contract and tort claims, including Bruno v. Erie Insurance Co. The Supreme Court will also address whether a plaintiff may maintain a breach of contract claim based on an implied duty to provide competent legal services without identifying a specific contractual provision that was breached. The Supreme Court’s decision could have significant implications for professional liability litigation in Pennsylvania, particularly where plaintiffs seek to characterize claims arising from alleged professional negligence as contractual claims.

Thought Leadership

Two Tracks, No Preclusion: Ohio Supreme Court Preserves Separate Damages Claims After Chapter 2506 Appeals

The Supreme Court of Ohio has clarified that an administrative appeal under Ohio Revised Code Chapter 2506 does not bar a separate action for damages and declaratory relief that could not have been pursued in the administrative appeal. The Ohio Supreme Court considered Sheetz, Inc. v. Centerville (2026-Ohio-3531) as a result of a certified question from the Southern District of Ohio. The question was whether Sheetz, the gas station/convenience store brand, was barred from seeking damages in a separate action since damages were not sought in their administrative appeal. Ultimately, the Ohio Supreme Court ruled that res judicata does not bar a separate action for damages after ruling on an administrative appeal because R.C. Chapter 2506 is limited to judicial review and cannot grant affirmative relief. The case arose after Centerville’s city council rejected a site plan proposed by Sheetz, Inc. that had received unanimous approval from the City’s planning commission. Sheetz filed an administrative appeal pursuant to R.C. 2506 in the Montgomery County Court of Common Pleas, and two months later filed a complaint for damages and declaratory relief under 42 USC § 1983 as a takings action with the city, city council, and other objectors as improper takings and a violation of due process, as well as interference with business and contractual relationship. The city and city council removed the § 1983 action for damages to federal court. Montgomery County Court of Common Pleas reversed the city council’s denial, and allowed the Sheetz project to move forward. Upon that ruling, the federal court issued a show-cause order questioning whether the § 1983 action was barred by the doctrine of res judicata via claim preclusion (which includes all theories of recovery).  Sheetz argued that Ohio courts of common pleas do not have authority to award damages or declaratory relief as party of the R.C. Ch. 2506 appeal, therefore res judicata could not be triggered to apply to the § 1983 action. Additionally, Sheetz moved to certify the issue to the Ohio Supreme Court, citing differing results between the second and sixth districts on this same issue. Centerville approached the question, not from a claim preclusion standpoint, but from the holding in Grava v. Parkman, Twp which states that a final judgment rendered on the merits bars all subsequent action based on the same transaction or occurrence.  In yet another approach, an objector argued that claim preclusion was satisfied because Sheetz could have raised its damages claims in the administrative appeal – Sheetz disagrees. In their analysis, the Supreme Court of Ohio broke down the elements of a claim preclusion analysis: 1) a prior final, valid decision on the merits by a court of competent jurisdiction; (2) a second action involving the same parties, or their privies, as the first; (3) a second action raising claims that were or could have been litigated in the first action; and (4) a second action arising out of the transaction or occurrence that was the subject matter of the previous action. The Court held that R.C. Ch. 2506 does not permit a party to argue damages as R.C. Ch. 2506 limits the common pleas jurisdiction as if it were sitting on appeal, and therefore can only affirm, reverse, vacate, or modify the appealed order, or can remand the case to the administrative body. Further, the Court held that Grava’s conclusion that a final judgment precludes additional litigation for different relief is inapplicable under this fact pattern because it was meant only to apply to those matters in which the plaintiff brings the exact same case twice, but for new relief. The Court found Grava was inapplicable because Sheetz could have requested damages or declaratory relief in the R.C. 2506 appeal. Therefore, Grava would be nothing more than dicta if it even did apply. Going further, the Ohio Supreme Court disavowed Sixth Circuit precedent which, in reliance on Grava and other district court decisions, permitted an owner to seeking relief under 42 U.S.C. § 1983 alongside an administrative appeal. See Moore v Hiram Twp., 988 F.3d 353 (6th Cir.2021). The Ohio Supreme Court found that the Sixth Circuit had disregarded a critical decision in Community Concerned Citizens, Inc. v. Union Twp. Bd. of Zoning Appeals, 1993-Ohio-115, which clearly held that a R.C. Ch. 2506 appeal cannot be combined with a complaint seeking other claims for relief. Id. at ¶ 11. To that end, the Ohio Supreme Court has determined that the decisions Moore relied on (outside of Grava) are no longer good law, and that Moore was wrongly decided. The decision draws a clear procedural boundary: Chapter 2506 provides judicial review of an administrative decision, not a forum for independent claims seeking affirmative relief. Although Grava may place claims arising from a single transaction within the potential scope of claim preclusion, those claims are not barred unless the complete claim-preclusion test is satisfied. Because Sheetz could not have pursued damages or declaratory relief in its Chapter 2506 appeal, the separate action was not precluded. The remaining question for practitioners looking to apply or defend against this exception is when does the statute of limitations begin to run on damages and declaratory relief claims related to an administrative decision on appeal? A takings action in federal court has a 2-year statute of limitations, or as a state claim, 4 years (like the other tortious claims raised therein). Correlating this case with others, an administrative appeal will not likely toll the statute of limitations on claims based on a final decision by a municipal authority. Therefore, practitioners should look for these cases to be brought simultaneously.