Employer's Misleading Statements Preclude Defense

Workers' compensation funds deposited into an individual retirement account (IRA) more than 60 days after they were received are not subject to an offset if the employer lulled the worker in a false sense of security about the protection of his benefits, a Pennsylvania court ruled. In Gadonas v. WCAB, 1943 C.D. 2006, 08/01/2007, the Commonwealth Court ruled that the employer's deception collaterally estops the employer from charging that employee Glen Gadonas deposited his funds into an IRA too late to protect it from an offset. "... there is no question that one of Gadonas' primary co...