Voluntary Withdrawal from the Workforce in Pa. 

Do You Know the Rule?

A worker whose injury has forced him to retire generally may continue to receive workers’ compensation benefits in Pennsylvania. An employer may file a petition seeking to terminate a claimant's employment on the basis that the employee has voluntarily withdrawn from the workforce. But it will have to prove that the employee left the job market for reasons other than his injury. 

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Burden of proof 

The employer has the burden of proving that the claimant has voluntarily left the workforce. Some examples of proof that can help an employer make it’s case are: 

• The claimant’s receipt of a pension. 

• The claimant's own statements relating to voluntarily withdrawing from the workforce, 

• The claimant's lack of effort to seek employment. 

• The claimant’s refusal to accept a suitable job that fits the claimant’s restrictions 

Totality of circumstances standard 

A WCJ will not presume that, because a claimant is applying for or taking a pension, that he has voluntarily retired.  

Instead, this is one piece of evidence a court make consider. A judge must consider such evidence in the context of the totality of the circumstances. The judge must also evaluate all the other relevant and credible evidence before ruling that the employer has carried its burden of proof. 

If employer fails to meet burden 

If the employer fails to present sufficient evidence to show the claimant has voluntarily retired, then the employer must proceed as in any other case involving a proposed modification or suspension of benefits. 

Shifting burden to employee 

If the employer produces sufficient evidence to support a finding that the claimant has voluntarily left the workforce, then the burden shifts to the claimant to show there has been a compensable loss of earning power.  

Lessons for employers 

Employers that want to terminate benefits based on the employee’s voluntary withdrawal from the workforce should ensure they have a strong case before filing a petition. They should: 

• Gather proof 

• Avoid relying solely on the claimant’s acceptance of retirement benefits 

• Focus on what motivated the claimant to leave the workforce 

Employers should keep in mind that filing a petition to stop benefits could end up saddling them with even more financial burden they don’t have a solid case. It’s important to remember that the employer bears the initial burden of establishing a reasonable basis for terminating benefits.  

If an employer’s challenge is found to be unreasonable, it will have used resources paying its own attorneys. But it may also end up having to pay the claimant’s legal fees. The workers’ compensation act affords a claimant the ability to receive a reasonable sum for attorney fees when an employer pursues an unreasonable contest against her.   

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