Tag Archive for Labor and Industries Claims

Gregoire Announces Good News on Workers’ Compensation Rates

Good news from the Governor’s office: Christine Gregoire has announced that the unemployment tax and workers’ compensation reform bills from last legislative session will help businesses weather the continuing economic slump by lowering next year’s unemployment tax rates and holding workers’ compensation rates flat through 2012.  The steady rates through the Department of Labor and Industries will save businesses an estimated $150 million.

Earlier this year, the Department of Labor & Industries projected a double-digit increase for workers compensation rates in 2012. Yet Gregoire’s reforms, along with improving trends in L&I claims indicating lower future cost, have resulted in overall workers’ compensation rates remaining flat. L&I projects that the governor’s reform will save $1.1 billion over the next four years.

Judy Schurke, Director of the Department of Labor and Industries, stated that “During the public hearing process we heard that we need to do all we can to reduce or hold the line on the cost of providing a job. That’s why this flat rate is so important.”

While there will be no general rate increase, individual employers may see rates go up or down, depending on their recent claims history, and changes in the frequency and cost of claims in their industry. For example, a 3% increase is slated for the construction industry, while the retail sector will experience a 3% drop.

Gregoire commented that the news “couldn’t come at a better time for Washington businesses and workers. Thanks to the reforms we passed earlier this year and the hard work of our state employees, businesses will have more money to hire and get Washingtonians working again.”

The Employment Security Division originally estimated that February’s unemployment tax reform bill would save businesses more than $300 million in 2011. Less than a year later, the effectiveness of these reforms seems to have surpassed initial expectations:
• Updated estimates indicate that businesses will save more than $500 million in the two-year period — $300 million in 2011 and $207 million in 2012.
• 88% of Washington’s employers will pay lower unemployment tax rates in 2012 than what they pay now.
• The overall average unemployment tax rate will drop by 13%.
• For the 77,338 employers that have had no layoffs in the past four years, the tax rate will decrease by 71%.

Employment Security Commissioner Paul Trause has been unreserved in expressing pride for this outcome: “The stability of our unemployment benefits fund and tax system is the envy of many other states. No other state has been able to reduce taxes and provide temporary benefit increases in this economy.”

New workers’ compensation and unemployment tax rates will both take effect January 2012.

 

Oklahoma Senate Passes Workers’ Comp Bill

Recently the full Oklahoma Senate approved a series of bills ostensibly designed to reduce the cost of doing business in Oklahoma.  As states compete to bring in companies amidst a slowly recovering economy, the usual suspects have emerged as siren songs of the “pro-business” community: lower corporate taxes, heavy deregulation, and limitations on workers’ compensation claims.  These proposals often have ramifications beyond their stated goals.  Lowering corporate taxes creates gaps in state budgets already suffering from lack of revenue leading to cuts in social and public services.  Deregulation can lead to abuses of corporate power, as exemplified by the mortgage crisis that kicked off the current recession.  And heavy-handed reforms to workers’ compensation can limit the ways workers can lawfully pursue and receive legitimate injury claims.

Oklahoma Senate Bill 878 purports to be a comprehensive approach to workers’ compensation reform.  Brian Bingman, R-Salupa said, “We are committed to reducing Oklahoma’s workers’ compensation rates and making our state more competitive for job creation in every way.  This bill is progress towards a goal of making Oklahoma more competitive economically with surrounding states.”

The provisions of the Bill include mandating a judge to render a decision within 60 days, mandatory annual reviews of disability recipients, placing more authority in the hands of medical experts when reviewing claims, and encouraging early return to work as a form of rehabilitation.

Critics are skeptical of bill’s true intent.  Barbara Hoberock reports that the bill could limit injured workers’ access to medical treatment. It ties rates of compensation for doctors treating injured workers to 120 percent of Medicare. She quotes Dr. William Gillock, who practices occupational medicine in Tulsa. “We are concerned it would eliminate access to care and affect the quality of care we can provide,” he said.  The primary concern is that the reduction of compensation would make it difficult for doctors to refer their patients to specialists who charge higher raters.

Another measure passed by the Oklahoma Senate is aimed at limiting the amount workers’ compensation lawyers can be paid to represent injured workers.  Critics like Senate Minority Leader Charles Laster argue that the resolution would force injured worker’s to stand alone against the well-funded legal teams representing insurance companies.  Although supporters argue the measure would motivate workers’ compensation lawyers to work harder on behalf of their clients to obtain larger compensation, another possible outcome is reluctance to take cases in the first place.

The Washington State legislature is also pushing major changes in workers’ compensation benefits under the banner of reducing costs to the State.  While Governor Chris Gregoire’s proposal to push workers back into “light duty” while still recovering from injuries and to offer buy-outs to injured workers does not go as far the Oklahoma measures, it does reflect the national trend to push injured workers back into the workplace perhaps before they are ready.  The Seattle Times reports the “idea is to reconnect the worker with his boss, co-workers and paycheck, instead of having him sit at home on state benefit.”  One should note that the Times’ description of a worker sitting “at home” reflects an ugly prejudice in the mass media and by politicians against the plight of the injured worker.  As anyone who has suffered a workplace injury will tell you, recovery is a physically and emotionally exhausting process.

Labor and Industries laws continue to change across the nation.  Injured workers should consult with a Washington Workers Compensation Lawyer to ensure they receive the full protection of the law.

Tucson Tragedy Highlights Workers’ Comp Issues

The tragic shooting of Congresswoman Gabrielle Giffords, members of her staff, and several constituents in Tucson last month has highlighted many issues confronting our country today: questions of gun control, the level of vitriol in political discourse, and, interestingly, many questions of public health services and workers’ compensation.

It is well known that the suspect in the shooting, Jared Lee Loughner, suffered from various mental health issues and many sources in the Arizona Mental Health community commented that he might have received help had he sought it.  While this can never be known, his mental illness has prompted several discussions about the many cuts proposed to health care budgets as states tighten their belts across the country.

The flip side of this issue of access to health care is the fact that Representative Gabrielle Giffords was injured while on the job and her closely scrutinized recovery could be the result of Federal workers’ compensation.

According to Rebecca Shafer, President of Amaxx Risks Solutions, “As Congresswoman Giffords and the members of her staff are federal employees, and as they were at an official function for Congresswoman Giffords, she and her staff would be covered for workers compensation by the U.S. Department of Labors Office of Workers Compensation Programs, which administers the Division of Federal Employees Compensation.”  Shafer notes this kind of workers’ compensation is known as FECA – Federal Employees’ Compensation Act.

The next step in Giffords’ recovery will be a lengthy rehabilitation process. On January 21 she was transferred to the Memorial Hermann Medical Center in Houston, Texas and then moved to the Institute for Rehabilitation and Research.   Many experts have assured the public that she is receiving the absolute best care possible for someone with her severe neurological injuries.

The Federal Workers’ Compensation that covers Giffords and her staff is often singled out as a kind of “gold standard” by which other workers’ compensation programs are measured. Still, even Federal workers’ compensation benefits are under greater scrutiny in the current fiscal climate.

Joe Davidson writes in the Washington Post that Senator Susan M. Collins wants “the Government Accountability Office to study the program that provides income to injured federal workers.” Collins argues elderly workers who have no intention of returning to work continue to collect workers’ compensation benefits at taxpayer’s expense.

As Representative Giffords continues to recover under the best medical care available and with the well wishes of the Nation, it seems important to reflect on how her recovery stands in relation to the thousands of other injured workers who struggle to receive the same benefits guaranteed to them under the law.  As states continue to slash entitlement budgets, workers injured in preventable workplace incidents will need to find workers’ compensation attorneys who are abreast of the rapidly changing landscape of workers’ compensation law.  Injured workers should consult a Washington Worker’s Compensation Lawyer at Emery Reddy.

OSHA Cites Business for Misreporting Worker Injuries

Last month the U.S. Occupational Safety and Health Administration (OSHA) issued 83 citations to Goodman Manufacturing Company for deliberately failing to document and improperly documenting workplace injuries and illnesses at their Houston air-conditioning plant.  Fines and penalties have been assessed at $1.2 million.

In a conference announcing the proposed penalties, Secretary of Labor Hilda L. Solis stated that “Accurate workplace injury and illness records are vital tools for identifying hazards and protecting workers’ health and safety. Workers and employers need this information to recognize patterns of injuries and illnesses, and prevent future hazards.”

OSHA’s investigation of Goodman Manufacturing began in March 2010 after the agency received a series of complaints that Goodman had violated OSHA’s regulations by systematically failing to properly document workplace injuries and occupational illnesses. The investigation determined that from January 2008 to March 2010, the company had inaccurately recorded—or simply declined to document altogether—nearly 75 percent of employee injuries and illnesses on its premises.

Workers and regulators have commented that Goodman is highly knowledgeable of OSHA’s recordkeeping procedures, but nevertheless persisted in the decisions and actions resulting in the alleged violations.  Critical information pertaining to the degree and duration of its workers’ injuries and illnesses have been inaccurately documented, including the duration of their time off the job.  Such figures are vital to properly handling and treating injured workers in a workers’ compensation claim.

As OSHA’s Assistant Secretary of Labor, Dr. David Michaels explains, “OSHA takes these violations extremely seriously. We need accurate data to effectively target inspections and resources, and to measure the impact of OSHA’s actions on workplace safety. Employers and workers need to understand how important accurate data are to workplace safety and health.”

According to OSHA regulations, the definition of a willful violation is one that is committed with gross indifference to or intentional neglect for a worker’s safety and health.
Goodman Manufacturing was given 15 business days after the citations were issued to comply with OSHA’s protocol and request a consultation with the agency’s Houston director.  Goodman can also contest the citations with the independent Occupational Safety and Health Review Commission.

OSHA recently implemented a National Emphasis Program on Recordkeeping to evaluate the accuracy of employer documentation of worker injury and illness.

All workers are urged to immediately report accidents, fatalities or dangerous workplace conditions to OSHA’s toll-free hotline at 800-321-6742. 
 Injured workers should also consult a Washington Workers’ Compensation Lawyer at Emery Reddy.

Workers’ Compensation Boards Debate Disability Guidelines

The default rate among self-insured group trusts has produced an alarming level of assessments on small businesses throughout the country. Workers’ compensation boards in states like New York are increasingly deliberating “safety programs” that would lower workers’ compensation costs.

Certain critics—notably the insurance industry itself—have long argued that the injury benefits awarded by state workers’ compensation boards are overinflated, and do not accurately reflect the true costs of a given injury.

While cases of fraud and “presumptions” are significant factors, many claim that the inability of workers’ compensation boards to objectively assess and quantify disability is a much greater problem. For years, many WCBs have not had a working definition of levels of disability or percentage-based schedules of loss. These boards have used arbitrary and every-changing criteria to calculate hundreds of millions of dollars’ worth of permanent damages benefits. On top of this there have been the massive cost of trials and testimonies to calculate what WCBs claimed had no definition in the first place.

At the present moment, workers’ compensation boards across the nation are once again involved in debates over the creation and use of more standardized, objective guidelines to evaluate disability. Yet for generations, the workers compensation system has carried on profitably by not having such standards. In short, disputes have been resolved by an arrangement in which worker’s compensation attorneys and insurers must engage in expensive and inefficient disputes until both sides are worn down and settle for a number around 50%, giving the misleading impression of a fair and reasonable outcome.

According to Seattle Workers’ Compensation Attorney Theodore Ronca, this state of affairs has come about through the unique history of workers comp boards.  In New York State, for example, the board has employed a medical advisor since its very first days. The initial advisors established guidelines that were widely accepted and implemented, until they eventually came to be considered obsolete in the 1950s.  After that point, the New York State workers’ compensation board had no working guidelines, and attempts to create new criteria came to a state of deadlock through stubborn opposition on all sides.

The New York Workers’ Compensation Board continued to operate (unofficially) with the older guidelines, and then later with no criteria at all for the next forty years. Responding to pressure in the 1990s, it produced new written guideline for workers’ compensation benefits, but failed to make these binding.  In practice, they were generally ignored when negotiating workers’ compensation claims.

This, of course, raises the question as to whether guidelines would automatically solve anything. As Ronca points out, “unless the guideline can be tested to determine if it can measure what it purports to measure it remains a blank yardstick masquerading as a set of calipers.”  Calculations of workers’ compensation disability, ultimately, result in the final settlements of injury claims, some that currently stand above $200,000 (and rising).  Whether these numbers are too high or too low is a question for which many workers’ compensation boards still have no satisfactory answer.