HB426 • 2026

Workers' compensation; employer's offset in event of recovery.

An Act to amend and reenact § 65.2-313 of the Code of Virginia, relating to workers' compensation; employer's offset in event of recovery.

Healthcare Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: LeVere Bolling
Last action: 2026-04-13
Official status: Acts of Assembly Chapter
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Workers' compensation; employer's offset in event of recovery.

What This Bill Does

Workers' compensation; employer's offset in event of recovery.
Amends provisions related to an employer's offset for recovery in certain actions brought under the Virginia Workers' Compensation Act.
The bill requires that lifetime medical award benefits and ongoing indemnity award benefits shall remain in full force and effect if the claimant is under such an award at the time that recovery is effected, subject to the employer offset provisions.
Under the bill, an employer's credit shall be applied as a continuing, pro rata reduction to benefits otherwise payable under an existing award until the employer's required credit is exhausted.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB426AHC1

2026-01-22

Labor and Commerce Amendment

Plain English: OFFERED FOR CONSIDERATION 1/22/2026 HB 426 SUBCOMMITTEE 1.

OFFERED FOR CONSIDERATION 1/22/2026 HB 426 SUBCOMMITTEE 1.
Line 32, introduced, after ratio strike the remainder of line 32 and all of line 33 insert .
In addition, during the offset period, the claimant may make payment for medical expenses that fall under the medical award, and if so, the employer shall reimburse the claimant's proportionate share of attorney fees and costs on any and all payments made by the claimant as provided in this section until the employer's credit is exhausted.

HB426AH1

2026-01-22 • Committee

Subcommittee #2 Subcommittee Amendment

Plain English: 1/22/2026 HB 426 SUBCOMMITTEE 1.

1/22/2026 HB 426 SUBCOMMITTEE 1.
Line 32, introduced, after ratio strike the remainder of line 32 and all of line 33 insert .
In addition, during the offset period, the claimant may make payment for medical expenses that fall under the medical award, and if so, the employer shall reimburse the claimant's proportionate share of attorney fees and costs on any and all payments made by the claimant as provided in this section until the employer's credit is exhausted.

Bill History

2026-04-13 Governor
Approved by Governor-Chapter 923 (effective 7/1/2026)
2026-04-13 Governor
Acts of Assembly Chapter text (CHAP0923)
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Signed by Speaker
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Fiscal Impact Statement from Department of Planning and Budget (HB426)
2026-03-30 Senate
Signed by President
2026-03-30 House
Enrolled
2026-03-30 House
Bill text as passed House and Senate (HB426ER)
2026-03-11 Senate
Read third time
2026-03-11 Senate
Passed Senate
2026-03-11 Senate
Passed Senate
2026-03-11 Senate
Passed Senate Block Vote (39-Y 0-N 0-A)
2026-03-11 Senate
Reconsideration of Senate passage agreed to by Senate Block Vote (40-Y 0-N 0-A)
2026-03-11 Senate
Passed Senate Block Vote (40-Y 0--N 0-A)
2026-03-10 Senate
Rules suspended
2026-03-10 Senate
Passed by for the day
2026-03-10 Senate
Constitutional reading dispensed Block Vote (on 2nd reading) (37-Y 0-N 0-A)
2026-03-10 Senate
Passed by for the day Block Vote (Voice Vote)
2026-03-09 Commerce and Labor
Reported from Commerce and Labor (14-Y 0-N)
2026-02-03 Senate
Constitutional reading dispensed (on 1st reading)
2026-02-03 Commerce and Labor
Referred to Committee on Commerce and Labor
2026-02-02 House
Read third time and passed House Block Vote (99-Y 0-N 0-A)
2026-02-02 House
Fiscal Impact Statement from Department of Planning and Budget (HB426)
2026-01-30 House
Read second time
2026-01-30 House
committee amendment agreed to
2026-01-30 House
Engrossed by House as amended
2026-01-29 House
Read first time
2026-01-27 Labor and Commerce
Reported from Labor and Commerce with amendment(s) (22-Y 0-N)
2026-01-22 House
Fiscal Impact Statement from Department of Planning and Budget (HB426)
2026-01-22 Subcommittee #2
Subcommittee recommends reporting with amendment(s) (7-Y 0-N)
2026-01-22 Subcommittee #2
House subcommittee offered
2026-01-19 Subcommittee #2
Assigned HCL sub: Subcommittee #2
2026-01-12 House
Prefiled and ordered printed; Offered 01-14-2026 26102423D
2026-01-12 Labor and Commerce
Referred to Committee on Labor and Commerce

Official Summary Text

Workers' compensation; employer's offset in event of recovery.
Amends provisions related to an employer's offset for recovery in certain actions brought under the Virginia Workers' Compensation Act. The bill requires that lifetime medical award benefits and ongoing indemnity award benefits shall remain in full force and effect if the claimant is under such an award at the time that recovery is effected, subject to the employer offset provisions. Under the bill, an employer's credit shall be applied as a continuing, pro rata reduction to benefits otherwise payable under an existing award until the employer's required credit is exhausted. The bill also removes language limiting an employee's entitlement to compensation and expenses for medical, surgical, and hospital attention and funeral expenses.

Current Bill Text

Read the full stored bill text

An Act to amend and reenact §
65.2-313
of the Code of Virginia, relating to workers' compensation; employer's offset in event of recovery.
Be it enacted by the General Assembly of Virginia:
1. That §
65.2-313
of the Code of Virginia is amended and reenacted as follows:
§
65.2-313
. Method of determining employer's offset in event of recovery under §
65.2-309
or §
65.2-310
.
A.
In any action or claim for damages by an employee, his personal representative or other person against any person other than the employer under §
65.2-310
, or in any action brought, or claim asserted, by the employer under his right of subrogation provided for in §
65.2-309
, if a recovery is effected, the employer shall pay to the employee a percentage of each further entitlement
as it is submitted
equal to the ratio the total attorney's fees and costs bear to the total third-party recovery until such time as the accrued post-recovery entitlement equals that sum which is the difference between the gross recovery and the employer's compensation lien.
If, at the time such recovery is effected, the claimant is under an award for lifetime medical benefits, the lifetime medical benefits award shall remain in full force and effect and the claimant shall not be required to file additional claims for medical care and treatment that is causally related to the injury or occupational disease with an authorized treating physician. If, at the time such recovery is effected, the claimant is under an award for ongoing indemnity, the indemnity award shall remain in full force and effect, subject to the offset provided pursuant to this section.
B. No award following recovery of compensation under §
65.2-309
or
65.2-310
shall be suspended, modified, or terminated solely on the basis of an employee's third-party recovery or the existence of an employer's credit pursuant to this section. The employer's credit pursuant to this section shall be applied as a continuing, pro rata reduction to benefits otherwise payable under an existing award until the employer's required credit is exhausted. During the offset period, the employer shall remain liable to make periodic payments to the claimant, reduced by the pro rata ratio
. In addition, during the offset period, the claimant may make payment for medical expenses that fall under the medical award, and if so, the employer shall reimburse the claimant's proportionate share of attorney fees and costs on any and all payments made by the claimant as provided in this section until the employer's credit is exhausted.
C.
In ordering payments under this section, the Commission shall take into account any apportionment made pursuant to §
65.2-311
.
For the purposes of this section, "entitlement" means compensation and expenses for medical, surgical and hospital attention and funeral expenses to which the claimant is entitled under the provisions of this title, which entitlements are related to the injury for which the third-party recovery was effected.