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.

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.

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.

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.

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.

The Department of Labor & Industries (L&I) recently announced that no increase to workers’ compensation rates will occur in 2012. This marks the first time since 2007 that L&I has refrained from an annual rate increase.

Earlier this fall, the department proposed a 2.5% increase for L&I rates. Yet following public testimony regarding the impact of the recession – as well as positive trends in the claims duration – L&I ultimately determined to hold rates flat next year.

An online L&I rate table has been published on the Labor and Industries website; employers can also expect to receive a rate notice soon.

The decision to hold rates flat next year, coupled with savings from the 2011 workers’ compensation reforms, will save Washington businesses $150 million.

However, while there will not be a general rate increase, individual employers may experience rates increases or decreases depending on L&I claim histories and changes in the number and cost of claims in their particular industry.

A total of 171 risk classes will experience a rate increase in 2012, while rates for 146 risk classes will drop or remain the same. For example:

• Construction and forest products – 3% increase
• Agriculture – no increase
• Retail and restaurants – decrease by 3%

Past years have seen large variations in workers compensation rates for L&I claims. While higher than expected investment returns in 2007 led to a 2% rate cut, the Department of Labor and Industries began hiking rates in 2008, first incrementally (by 2 or 3%) and then dramatically: in 2010 L&I implemented a 7.6% average rate increase, which then jumped another 12% in 2011. Officials at the Department of Labor and Industries claimed that, “L&I kept the increase as low as it did by aggressive cost-cutting measures, budget reductions and drawing down the reserves by another $117 million.” However, many businesses were debilitated by the increase in costs   With the passage of Workers’ Compensation Reforms in 2011, $1.1 billion in savings is projected over the next four years, enabling the stabilization of Workers’ Compensation rates for 2012.

General Information about the Department of Labor & Industries and 2012 Workers’ Compensation rates

L&I in Washington State

Washington’s workers’ compensation system is the 7th largest workers’ compensation insurer in the U.S.  L&I insures 162,000 employers and 2.3 million workers; the money to pay work injury claims comes from premiums and investment income. The State Fund does not receive money from state taxes that go into the state General Fund or from the federal government. Each year, about 100,000 L&I claims are filed for work injuries and work-related illnesses. The Department of Labor and Industries maintains administrative costs for managing and processing claims at about 10%, which is approximately one-third of the administrative costs found in many other state funds.

How does L&I help employers meet their obligations?

L&I’s Employer Assistance Program assists Washington businesses that are struggling to pay premiums. L&I can establish a payment plan, and in some cases will agree to waive late penalties and/or interest.

Why did my rates go up when I’ve never had a claim?

In Washington State, all employers that perform similar operations and have similar exposures are classified and grouped together within the same workers’ compensation risk class. Premium rates are set according to the total costs for the risk class. Medical costs and wage compensation for lost workdays also drive up premium rates for an industry risk class. Therefore, if your risk class had higher costs overall, the general rate will be higher for everyone, even if a particular workplace has a good safety record and workers do not file L&I claims as often as other businesses.

Making sense of workers’ compensation law in Washington State generally boils down to a few key things: businesses need to avoid expensive lawsuits that could hurt their bottom line or even shut them down. So when employees are injured, the Workers Compensation system – overseen and administered by the Department of Labor and Industries here in Washington State – acts as a kind of insurance policy against that outcome.  L&I pays for medical treatment and covers the costs of missed workdays so that workers don’t have to take their claims to court.

Workers’ compensation law was originally conceived as a “no fault” system, meaning that workers are entitled to workers’ compensation benefits no matter who is responsible for a job-related accident or injury. There are, however, some cases where this principle can be waived; for instance, if a worker injures herself due to drug or alcohol abuse, or if a worker intentionally inflicts and injury upon himself, he or she may be ineligible to file a claim. The precise number and nature of rules governing workers’ compensation law varies from state to state.

In many states, employees in particular lines of work are ineligible for workers’ compensation benefits. This may include volunteers, domestic workers, contractors, farmers, consultants and others.  Oftentimes part-time employees do not qualify for benefits from work injuries either.  Workers are advised to consult with their employer and their attorney for full details, especially if they work in a dangerous position with a higher risk of workplace injury, occupational illness or death.

While the basic principles of this system may seem simple at first glance, the actual procedures for dealing with L&I and obtaining one’s full injury benefits and needed medical treatment can be overwhelming. Injured workers in Washington State must navigate through a complicated bureaucratic system where they are left to sort through hundreds of L&I regulations and forms, and locate the right contacts in the midst of thousands of administrators who are themselves bogged down by the complex demands of the process. Getting tangled up in the details of Workers’ Compensation statutes

lcan compromise your personal recovery and jeopardize your full financial compensation. The Washington L&I attorneys at Emery Reddy can give you the Workers Compensation expertise you need during every step of process, and help you receive the maximum benefits to which you are entitled in your L&I claim.

Under state law, a “willful” violation occurs when an employer knowingly breaks a rule and exhibits an obvious indifference to correcting that violation; a “serious” violation is an incident involving a substantial probability of serious worker injury or death.

The accident occurred at Tesoro on April 2, 2010.  L&I concluded that the explosion was located in the refinery’s Naphtha Hydrotreater Unit, and occurred as workers were restoring a bank of 40-year-old heat exchangers into service after they had been shut down for maintenance. One of the heat exchangers ruptured, releasing hydrocarbon gas that quickly ignited.  Investigators determined that equipment was never tested in any way that would have indicated the problem.

L&I also found that for years, the exchangers had leaked extremely volatile and flammable vapor and liquid from its connections, particularly when the machinery was being started up or following a shutdown.  The company’s repair efforts, which included very simple clamps, were shockingly inadequate.  When these failed to correct the problem, Tesoro’s workers were forced to disperse the flammable vapors with tubes known as “steam lances” in order to try to prevent ignition. Employees carried out this hazardous work wearing hard hats, gloves, goggles and basic flame-resistant coveralls, which was insufficient protection for the hazards to which they were exposed.

According to the agency’s press release, “L&I inspectors found that Tesoro disregarded a host of workplace safety regulations, continued to operate failing equipment for years, postponed maintenance, inadequately tested for potentially catastrophic damage and failed to adequately protect their workers from significant risk of injury and death.”

Killing seven workers, the Tesoro explosion was the worst industrial tragedy since L&I began enforcing the state’s workplace safety law 37 years ago under the Washington Industrial Safety and Health Act.

Governor Chris Gregoire was among several officials to remark on the workplace accident and tragic loss of lives.  “The loss of seven lives is a tragedy not just for their loved ones but for our entire state. What makes the loss of these lives all the more painful is that these deaths could have been prevented,” she said. “I believe the action L&I is announcing today and the record fine they have assessed against Tesoro sends a clear message that these tragedies are not acceptable.”

Addressing a group of Seattle workers’ compensation attorneys,  Dr. Michael Silverstein—the assistant director of the Division of Occupational Safety and Health—reiterated the Governor’s remarks: “If Tesoro had tested their equipment appropriately and had followed their other safety requirements, we believe that they would have found the cracks that caused this explosion and, either by replacing the equipment or repairing it, prevented this from happening.”

Historically, New Jersey’s maximum workers’ compensation has increased by modest increments on a yearly basis. The decrease slated for 2011 indicates a significant faltering of the state’s economy.  And while there will be a decline in scheduled disability rates, skyrocketing medical costs will continue to go uncapped.  The financial consequences of that disparity remain unclear in a period of declining payrolls and smaller premium collections on workers’ compensation benefits.
2011’s maximum workers’ compensation benefits for temporary disability, permanent partial disability and permanent total disability rates are based upon the States’s Average Weekly Wage (SAWW) for the prior year. Currently, New Jersey allows a maximum benefit of 75 percent of the state’s average weekly wage.

Maximum workers’ compensation benefit rates in New Jersey have been regarded as rather low in relation to other states in the U.S., and many workers’ compensation attorneys and workers’ rights advocates have purchased for a higher adjustment.

The new payment schedules will apply to workers who suffer on the job injuries and deaths in 2011.

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.