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Washington Workers’ Compensation Reform Center of New Struggle

Yesterday, the Washington Department of Labor & Industries announced that the recent reforms signed into law by Governor Gregoire in May and covered extensively in this Blog were on track to save the state $1.1 billion and even allow the L & I system to break even as early at 2012.  Despite this, L & I also wants to raise rates by 3.5 percent to bulk up the reserves that support the system.

This proposal was announced by Labor & Industries Director Judy Schurke at a briefing for the Workers’ Compensation Advisory Committee.  News like this tends to make business groups nervous as they tend to argue that any rate increase will directly affect their ability to hire in this shaky economy.

However, noting how the recession deeply impacted the workers’ compensation system reserves, Schurke insisted the rate increase was necessary.  She noted, “It’s critical that we restore the workers’ comp reserves.  Savings from the reforms create an opportunity to do this without large rate increases,” Shurke noted.

Kris Trefft, general counsel for the Association of Washington Business, countered “On the one hand I understand what they are saying.  On the other hand I can’t believe now is a good time to raise rates when the department’s own data shows they don’t have to because of these…reforms.”

However, Labor Advocate Kathy Cummings released a statement saying “We think that restoring the reserves is the responsible choice…Employers have strong financial incentive to aggressively market these lump-sum buyouts, but it’s anybody’s guess how often workers will sign on the dotted line.”

The Department of Labor & Industry will announce proposed rates on September 20 and public hearings will be held in October.  Whatever the outcome, it’s clear that the struggle over reforming Washington’s workers’ compensation system is far from over.

If you are an injured worker preparing to file a claim, be sure to contact an experienced Washington Workers’ Compensation Lawyer at Emery Reddy today.

 

“Bad Faith” : Insurance, Injured Workers, and Workers’ Comp

Recently, a court decision in Texas eroded some worker rights with respect to the Workers’ Compensation Act by scrutinizing what it means when an insurer or employer acts in “bad faith.”

In the case of Texas, a rising tide of lawsuits claiming “bad faith” motives for all Texan insurance carriers were peaking in the courts. It was in this climate that Texas Mutual Insurance Company v. Timothy J. Ruttiger was filed in 2004.

Texas Mutual initially refused Mr. Ruttiger’s claim for compensation because his employer claimed that he suffered the injury at a softball game that was unrelated to work. However, Texas Mutual did come to a compromise with Mr. Ruttiger.

Later, a trial court decided that the company’s insurance adjuster had too readily believed the claims of Texas Mutual over Mr. Ruttiger, thus acting in “bad faith.” As such, the court compensated him over and above the amount Texas Mutual had already dispensed to cover medical costs and lost wages.  In effect, the extra money was awarded for “mental anguish.”

Although a Court of Appeals upheld the decision, the cased case was appealed to the Supreme Court.  Unfortunately, the Texas Supreme Court sided with Texas Mutual, arguing that allowing employees to receive compensation for dealing with unwarranted obstacles, delay, and obstructions to just compensation amounted to a burden on the Workers’ Compensation system.

Predictably, Mary Barrow Nichols, Counsel for Texas Mutual, declared the decision a “significant victory for Texas employers.”

Still, advocates for workers’ rights note that this decision reinforces the unpleasant reality that in many ways “bad faith” decisions  by insurers are very much built into the system in favor of employers.

If you are an injured worker preparing to file a claim, be sure to contact an experienced Washington Workers Compensation Attorney at Emery Reddy to serve as your advocate in this important process.

OSHA Criticizes Yale’s Safety Standards after Student Tragedy

According the New York Daily News, a Yale University student was killed in an accident at a chemistry lab when her hair was drawn into a piece of lab machinery.  According to official reports, when fire firefighters responded around 2:30 a.m., they discovered the Michele Dufault sitting at a lathe with her hair entangled in the machine.  She apparently died after her hair was caught in the lathe, a rotating machine that spins rapidly to shape various materials.

Ms. Dufault studied astronomy and was due to graduate next month.

The U.S. Occupational Safety and Health Administration has reported that the lathe that killed Ms. Dufault was missing required safeguards and that the accident highlighted several issues with Yale’s system of safety policies.

Interestingly, OSHA didn’t fine Yale for the accident, citing that it lacked jurisdiction.  Essentially, there is no employer-employee relationship between graduate students working in labs and the University that governs them.  The murky status of graduate students laboring for universities has come under scrutiny of late.  There have been several movements by graduate students to seek unionized status when they are forced to labor as teachers as requirement of a scholarship package.

Nevertheless, OSHA did issue a letter obtained by the Associated Press that found many problems and ongoing safety issues in the machine shop where Ms. Dufault, who was an undergraduate, died.

According to OSHA, the lathe was built in 1962 and lacked a means to turn power off in an emergency.  In addition, warnings and rules for operating the equipment were not posted.  Most importantly, students should never work alone on dangerous machinery an should be trained in a formal safety program.

Ultimately, this unfortunate tragedy brings up a number of important issues that are of interest to labor rights activists and advocates for workers’ compensation: is a student injured while completing required work eligible for compensation?  What about graduate students laboring on behalf of a university?

If you are a worker or student worker injured in a situation where the obligations of your employer or higher leaning institution are unclear, be sure to first seek medical assistance.  Then seek out the experienced Washington workers’ compensation lawyers at Emery Reddy for guidance.

 

 

 

Drop in Workers’ Comp Claims in Sync with Shaky Recovery

A 2009 report on workers’ compensation provides a fascinating meditation on the way unemployment effects the number of injured workers.

According to the National Academy of Social Insurance there has been a 4.4 percent drop in workers covered by workers’ compensation as of 2009.  If the numbers hold up, this downturn will represent the largest drop in coverage in nearly two decades.

Unsurprisingly, the costs to employers for benefit also fell to $73.9 billion in 2009, representing a decline of nearly 7.6 percent.  Both of these trends are yet another feature of a recession and shaky recovery characterized by massive unemployment.

While less injured workers as a result of less employed workers is a small silver lining to the economic suffering experienced by much of the company, there is also a solid positive labor rights indicator in the report.  John F. Burton, Jr., chair of the panel that oversees the report, noted that although the cost to employers dropped significantly, benefits did increase slightly to $58.3 billion, up by nearly 0.4 percent.

These statistics can sometimes be hard to process when the employment environment is so dynamic.  After all, traffic fatalities and injuries have decreased significantly during the recession and recovery…but this is due, in part, to high gas prices and consumers seeking other forms of transportation.  On an environmental note, the high gas prices end up being a boon, but for spurious reasons.

On a similar, although bewildering note, there were 4,551 fatal work injuries occurring in 2009, the lowest since 1992.  While this is certainly a positive outcome, a key goal for the Occupational Safety and Health Administration is for fatalities to drop while employment rises.  This would signify a true improvement in worker safety.

If you are an injured worker, you should first seek medical care.  You should then seek the advice of an experienced Washington Workers Compensation Attorney at Emery Reddy to serve as your advocate as you file your workers’ compensation claim.

Urgent: Important Workers’ Compensation Case Reversed

A California court of appeals has reversed an earlier decision that sent waves through California’s Workers’ Compensation system.

On July 29, the appellate court of California’s 1st District reversed the outcome of the Ogilivie vs. the Workers’ Compensation Appeals Board, sending the original case back for review.

The original case surrounded one Wanda Ogilivie, who suffered a work injury that eventually led to a knee replacement.  She also suffered an injury to her spine, although she chose not to have a spinal fusion.  She never returned to work.  At issue is whether the method for adjusting workers’ compensation awards to reflect diminished future capacity could be challenged.

The original decision in 2009 ultimately ruled that in some cases, certain evidence could be used to rebut rating permanent disabilities.

The California Workers’ Comp Board decision had an unsettling effect on the workers compensation system, with businesses and insurers making the usual noises about how this expansion of worker rights would impact their bottom line.

As the case has gone back for further review, it is uncertain what the outcome might be.

If you are an injured worker, let the experienced Washington workers comp attorneys at Emery Reddy navigate the ever shifting landscape of workers comp law on your behalf.  Contact us today for all workers compensation and labor rights queries.