Summer is ending and another school year is about to begin. In the DiMeo household, we are preparing for three children to start the school year. Recently, we received bus information, teacher assignments, reminders about required medical forms and the dreaded list of items to purchase before the first day of school. Soon we will receive a reminder for back to school night and do not forget the contact paper to cover those books. So as I received those reminders and prepared for the first day of school, it made me think about an important reminder in the realm of Workers’ Compensation, sending the LIBC Employee Verification Form.
The Act provides the insurer right to send an Employee Verification Form (LIBC 760) to a claimant to verify earnings while receiving disability benefits. The form also requires the claimant to report any change of physical condition. The claimant is required to complete, sign and return the form to the insurer within 30 days. The executed document is a certification by the claimant that the information is true and correct, and that he or she is aware of potential penalties provided under the law for false statements. We are permitted to send the form every six months. Unbelievably, sometimes Claimants return to work and do not tell us. I know another shocking Workers’ Compensation tale.
If the claimant fails to return the form within the 30-day timeframe, we can issue a Notification of Suspension for Failure to Return the 760 (LIBC 762). More importantly, once we file the LIBC 762 we can suspend indemnity benefits. Moreover, what makes this even better is the fact that we do not have to reinstate benefits until the Claimant returns the fully executed LIBC 760. Once claimant returns the form, we have to reinstate, but only as of the date, the form is completed and returned, not retroactively. When the Claimant returns the form, we need to issue the LIBC 763, Notification of Reinstatement and begin paying benefits as of the date returned.
In addition, although the LIBC 756 form does not possess the same power of suspension as the 760 form, always remember to send this form as well. The 756 form requires the claimant to report the receipt of other benefits, including Unemployment, Social Security, Pension and Severance. Receipt of these benefits may result in an offset to claimant’s benefits.
In conclusion, in anticipation of the first day of school, here is the first lesson:
Send the LIBC 760 and 756 forms to claimant every six months.
Be sure to copy Claimant’s counsel, if represented.
Diary for 30 days for the return of the LIBC 760.
If not returned in 30 days, issue the LIBC 762 and suspend claimant’s benefits
Once the form is returned completed, reinstate benefits as of that date, not retroactively utilizing the LIBC 763.