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Submitted: February 8, 2002

Belay Gereyes petitions for review of the Workers’ Compensation Appeal Board order reversing the reinstatement of his full compensation benefits and award of penalties against New Knight, Inc. (Employer) for unilaterally reducing his benefits in violation of Section 413(b) of the Workers’ Compensation Act (Act). *fn1

Gereyes began receiving compensation pursuant to a notice of temporary compensation payable dated May 4, 1999 in connection with his tendonitis in both wrists; payments began as of April 11, 1999, the date on which Gereyes first incurred a wage loss. Gereyes returned to work with a wage loss sometime thereafter. On June 28, 1999, the Employer issued its last compensation check under the notice, covering the period from June 22 to 29, and on June 29, the Employer issued a notice stopping temporary compensation and a notice of compensation denial. The notice of compensation denial states that the Employer controverted the claim on the ground that “the employee is not disabled as a result of this injury within the meaning of the Workers’ Compensation Act.” *fn2 On October 6, 1999, Gereyes filed a penalty petition, alleging that the Employer violated Sections 406.1 and 413(b) *fn3 of the Act, 77 P.S. ��717.1 and 774.1, having illegally reduced and suspended the payment of compensation benefits.

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