NEW CASTLE, PA - Workers injured on the job face additional challenges when their employer fails to carry required workers' compensation insurance, but Pennsylvania law provides multiple avenues for recovery. New Castle workers' compensation attorney Lawrence M. Kelly of Luxenberg Garbett Kelly & George P.C. (https://www.lgkg.com/what-happens-if-a-company-does-not-have-workers-comp-insurance/) explains the legal options available to injured workers when companies violate state insurance requirements.
According to New Castle workers' compensation attorney Lawrence M. Kelly, Pennsylvania law requires virtually all employers to provide workers' compensation coverage, regardless of company size. Under the Pennsylvania Workers' Compensation Act, businesses with even one employee must maintain insurance to protect workers who suffer workplace injuries. When employers fail to meet this legal obligation, injured workers can still pursue benefits through the state's Uninsured Employers Guaranty Fund or file civil lawsuits for full damages.
New Castle workers' compensation attorney Lawrence M. Kelly emphasizes that the Uninsured Employers Guaranty Fund serves as a critical safety net for injured workers. The UEGF pays the same medical benefits and wage replacement that workers would receive from a private insurance carrier. After providing benefits to injured workers, the fund pursues the uninsured employer to recover all costs plus interest and penalties. The UEGF has broad authority to collect these costs, including filing liens against business property, garnishing bank accounts, and pursuing personal assets.
"The UEGF provides comprehensive benefits including medical treatment, wage replacement at two-thirds of average weekly wages, and disability benefits," Kelly explains. "While the process may take longer due to verification of the employer's uninsured status, workers still receive the full range of benefits they need."
Workers' compensation attorney Lawrence M. Kelly notes that injured workers at uninsured companies also have the right to file personal injury lawsuits in civil court. This represents a major exception to the exclusive remedy rule that normally prevents workers from suing their employers. Because the employer violated Pennsylvania law by failing to maintain coverage, injured workers can seek damages not available through workers' compensation, including pain and suffering, emotional distress, loss of enjoyment of life, and full lost wages without the two-thirds cap.
Kelly adds that uninsured employers face severe consequences under Pennsylvania law. Employers must reimburse the UEGF for all benefits paid plus interest and penalties. The fund charges interest from the date benefits are first paid and continues accruing until full reimbursement occurs. Additional penalties based on payroll and the length of time without coverage can escalate costs into hundreds of thousands of dollars. Operating without workers' compensation insurance is also a criminal offense punishable by up to one year in prison and fines of up to $2,500 for each day of operation without coverage.
The attorney emphasizes the importance of immediate action following workplace injuries at uninsured companies. Workers should seek medical attention promptly, report injuries to employers in writing within 120 days, and verify insurance status through the Pennsylvania Bureau of Workers' Compensation. Gathering evidence including pay stubs, medical records, and witness statements helps support both UEGF claims and potential lawsuits.
"Workers injured at uninsured companies must take steps to protect their rights immediately," Kelly advises. "Documenting the injury, verifying coverage status, and consulting with legal counsel ensures that workers understand all available options."
Attorney Kelly notes that the Pennsylvania Department of Labor & Industry and Bureau of Workers' Compensation actively enforce penalties against uninsured employers. Stop-work orders can shut down businesses until proper insurance is obtained. Law enforcement agencies throughout Pennsylvania, including prosecutors in Lawrence County, pursue criminal charges against employers who intentionally avoid insurance requirements.
For workers facing decisions about pursuing UEGF benefits versus civil lawsuits, Kelly explains that the choice depends on multiple factors including injury severity, the employer's ability to pay judgments, and the need for immediate financial support. In some cases, filing a UEGF claim for immediate benefits while exploring lawsuit options provides the most comprehensive recovery. If damages are recovered through lawsuit, the UEGF may place a lien on settlements to recover benefits already paid, preventing double recovery while ensuring full compensation.
Workers injured throughout New Castle, Lawrence County, and Western Pennsylvania can file claims through the Pennsylvania Bureau of Workers' Compensation or pursue civil lawsuits in courts including the Lawrence County Court of Common Pleas. Proper legal representation helps injured workers navigate the UEGF claim process, meet filing deadlines, and build strong cases against uninsured employers.
Workplace injuries at uninsured companies create complex legal situations requiring immediate attention and strategic decision-making. For those facing these circumstances, consulting with experienced legal counsel provides clarity on available options and ensures employers are held accountable. To schedule a consultation, contact Luxenberg Garbett Kelly & George P.C. at (724) 658-8535.
About Luxenberg Garbett Kelly & George P.C.:
Luxenberg Garbett Kelly & George P.C. is a New Castle-based law firm dedicated to representing injured workers in workers' compensation claims and personal injury lawsuits. Led by attorneys Lawrence M. Kelly and Joseph A. George, the firm serves clients throughout New Castle, Lawrence County, Butler County, Beaver County, Allegheny County, and Western Pennsylvania. For consultations, call (724) 658-8535.
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Email: lmkelly@lgkg.com
Website: https://www.lgkg.com/
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Company Name: Luxenberg Garbett Kelly & George P.C.
Contact Person: Lauren Kelly Gielarowski
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Phone: (724) 658-8535
Address:315 N Mercer St
City: New Castle
State: Pennsylvania 16101
Country: United States
Website: https://www.lgkg.com/
