A company cannot be penalized for failing to comply with the Workers’ Compensation Act if it is not later defined as the claimant’s employer, a split Commonwealth Court panel has ruled in an issue of first impression.
A three-judge panel of the court held in Ayerplace Enterprises v. Workers’ Compensation Appeal Board (Royal) that, although Ayerplace Enterprises failed to make certain workers’ compensation payments after the company was initially determined to be an employer, Ayerplace could not be penalized under the Workers’ Compensation Act for the delay, since it was later determined on appeal not to be the claimant’s employer.
