In the recent Pennsylvania Commonwealth Court case of Dollar Tree Stores Inc. v. WCAB, the court held that an employer is not entitled to recoup an overpayment of indemnity benefits under �413(a) of the state Workers’ Compensation Act unless an incorrect agreement to modify compensation benefits had been executed. The overpayment that the insurance company had made was a result of an incorrect average weekly wage and corresponding compensation rate.

The facts of Dollar Tree are fairly common. Consequently, all workers’ compensation practitioners should be aware of the case and its effect on potential requests for a credit against future compensation.

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