Tag Archive for L&I

L&I Launches “Stay at Work” Program

Employers who give injured workers the opportunity to stay at light-duty jobs during their recovery may be eligible for reimbursement through the Department of Labor & Industries.  This incentive has emerged out of a new program in Washington State designed to keep injured workers in their jobs, while supporting employers who make this possible.

Washington’s new Stay at Work program is open to employers who pay workers’ compensation premiums to L&I. The program partially reimburses those businesses for the cost of returning employees with a work injury to light-duty jobs before they have medical clearance to return to their primary positions.

While the program was just launched yesterday, the legislation that produced it went into effect in June of 2011.  L&I claim managers anticipate that thousands of reimbursement requests from businesses who’ve already been offering light-duty jobs to employees with work-related injury during the period since the legislation passed.

The new program is one of a number of historic workers’ compensation reforms to come out of the 2011 Washington legislative session. These reforms are intended to lower costs and improve the recovery rates for workers with on-the-job injuries.

“The Stay at Work program gives us a unique opportunity to give Washington businesses an active role in their injured workers’ recoveries and return to productive employment,” said L&I Assistant Director for Insurance Services, Beth Dupre. “Most important, we have a much better chance of helping injured workers stay on salary and in the game while they recover under their doctor’s care.”

Employers participating in the Stay at Work program help injured workers by creating light-duty or “transitional” jobs that adhere to physician’s recommendations and medical restrictions. Some workers will need to undergo an Independent Medical Examination as part of this process. During the prescribed recovery time, the injured worker earns wages from the employer rather than receiving time-loss compensation from L&I.  For example, a worker with a construction site injury might take an inventory job while recovering from a back injury. Then through the Stay at Work program, L&I reimburses the employer for half of the worker’s base wage, plus some additional expenses (not to exceed $10,000 per L&I claim).

The program has already proved effective in Oregon, showing a tendency to speed recovery time and reduce long-term disability for a given workers compensation injury.  Medical studies indicate that many workers recovering from an injury are less likely to suffer from long-term disability when they remain active and engaged.

“This is a win-win for our employers,” Dupre said.  “It’s a strategy that will help their businesses and workers, and it won’t negatively impact their premium costs.”

If you need help with your L&I injury claim, contact a Seattle L&I Attorney.

 

Department of Labor Sets New Goal to Improve Employment for Americans with Disabilities

The U.S. Department of Labor has proposed a historic new rule that could require federal contractors and subcontractors to establish hiring goals that 7 percent of their workforce be people with disabilities. The Office of Federal Contract Compliance Programs is currently soliciting public comment on this proposal, and plans to publish responses in the forthcoming edition of the Federal Register.

The OFCCP’s prospective rule would bolster affirmative action requirements set forth in Section 503 of the Rehabilitation Act of 1973, and obligate federal contractors / subcontractors to give equal employment opportunities to qualified workers with disabilities. The potential regulatory changes also include particular actions that contractors would be required to take in recruiting, training, record keeping and policy dissemination — much like those already required to foster workplace equality for minorities and women.

In an announcement released by the Labor Department, Secretary of Labor Hilda L. Solis stated that the proposed rule represents “one of the most significant advances in protecting the civil rights of workers with disabilities since the passage of the Americans with Disabilities Act. President Obama has demonstrated a commitment to people with disabilities. This proposed rule would help federal contractors better fulfill their legal responsibility to hire qualified workers with disabilities.”

While Section 503 policies have already been in place for decades, people with disabilities are presently experiencing an unemployment rate of 13 percent, which is one and a half times higher than those without disabilities. Even more alarming is the data released last week by the Bureau of Labor Statistics, which confirms blatant disparities for working-age Americans with disabilities, with 79% completely outside the labor force, compared to 30% of those without disabilities.

“For nearly forty years, the rules have said that contractors simply need to make a ‘good faith’ effort to recruit and hire people with disabilities. Clearly, that’s not working,” said OFCCP Director Patricia A. Shiu. “Our proposal would define specific goals, require real accountability and provide the clearest possible guidance for employers seeking to comply with the law. What gets measured gets done. And we’re in the business of getting things done.”

Setting a 7% hiring goal for hiring Americans with disabilities provides a tool for contractors to assess the effectiveness of various affirmative action efforts. The proposed rule would also improve requirements for data research and documentation to enhance accountability. Additionally, it would institute annual self-reviews of employers’ outreach and recruitment efforts, and include a new requirement for contractors to post job openings to broader pools of qualified candidates.

Learn more about Disability Benefits through the Labor and Industries website.

If you believe you are the victim of employment discrimination, contact a Seattle employment attorney for help with your case. Emery Reddy also represents Washington workers with L&I claims and workers compensation claims.

Workers’ Compensation Required for Taxi and Limo Businesses in 2012

Effective Jan. 1, 2012, all for-hire drivers in Washington will be required to carry workers’ compensation insurance. Under Washington law, “for-hire vehicles” include taxis, cabulances, and limousines.

In Washington State, workers’ compensation insurance coverage is offered through L&I (the Department of Labor & Industries).

This new mandate regarding for-hire drivers was passed in the 2011 Washington Legislature’s House Bill 1367.

What do taxi drivers need to know about L&I claims?

Washington residents who are either owner-operators, or who own a “for-hire vehicle” driven by an employee are responsible for paying workers compensation insurance premiums and reporting workplace injuries directly to L&I.  The 2012 base premium rate has been set at 55 cents/hour.

Do I have to pay workers’ compensation premiums?

Yes. Businesses or self-employed drivers who fail to pay L&I premiums will have their for-hire certificates suspended – and potentially revoked – by the Department of Licensing.

Why do I have to carry workers’ compensation insurance?

Carrying workers compensation insurance will allow drivers of for-hire vehicles to file L&I claims and receive approved medical care and wage compensation if they are injured on the job or develop a work-related illness.  This coverage will also give vehicle owners protection from potential lawsuits by drivers who sustain an injury while operating that vehicle.

How do I sign up for Workers’ Compensation Insurance?

L&I is the agency that establishes workers’ compensation accounts for businesses.  Employers can expect a package in the mail including:

  • A Certificate of Coverage for each vehicle you own (this must be carried in each separate vehicle-for-hire).
  • Guidelines for how to report a workplace injury to L&I.
  • A schedule of your insurance rates.

Businesses that have not received these materials by January 31, 2012, should immediately contact L&I manager Ethan Shaefer at 360-902-4620, or ethan.shaefer@Lni.wa.gov.  You are also advised to consult an L&I attorney if you have a denied L&I claim or other disputes involving a workers compensation claim.

Employee Misclassification as Independent Contractors

The Department of Labor’s recently-launched Misclassification Initiative – initiated though Vice President Joe Biden’s Middle Class Task Force – is showing signs of early success in cracking down on businesses that misclassify workers to cheat them of workers’ compensation benefits and other benefits to which they are entitled. The misclassification of employees as “independent contractors,” for example, harms both workers and the economy as a whole, denying individuals access to important benefits and protections like family and medical leave, overtime, minimum wage and unemployment insurance. Employee misclassification also has a negative impact on L&I’s workers compensation funds.

The Misclassification Initiative is restoring rights to those who have been cheated through their employer’s improper practices. In September of 2011, Secretary of Labor Hilda L. Solis signed the Memorandum of Understanding between the Labor Department and the IRS. This arrangement enables agencies to work more closely and share information that will reduce the overall incidence of employee misclassification.

The Wage & Hour Division and the State of Washington Department of Labor & Industries joined forced with the shared goal to provide clear, reliable, and accessible outreach to employers, workers, and other Washington residents. To this end, L&I and the Labor Department will share resources and increase enforcement of worker classification laws by conducting joint investigations and providing ease-of-access to information pertinent to the enforcement of such laws.

Click here for a recent CBS story on Misclassification of Independent Contractors.

If you feel you are a misclassified worker, and have been denied benefits as a result, contact an L&I Attorney to represent your rights.

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.