‘Lump-sum’ a major sticking point in Washington state

We’ve been following legislative battles over workers’ compensation system in several states, especially Washington, Montana and Illinois, and also in West Virginia.

Around the nation, workers’ comp impasses abound

An April 22 piece at Huffington Post picks up on the topic, focusing on a battle in Maine over psychological injuries received in the line of duty (a particular concern for first responders), but concluding with an overview of nationwide perspective:

There’s a flurry of legislative activity around the country — notably in Maine, North Carolina, Illinois, and Montana — geared towards reining in the costs to employers of workers compensation claims. Maine Governor Paul LePage (R), who’s already sparked a high-profile battle with the state’s labor groups, went so far as to mention workers comp reform in his inaugural address. Illinois Governor Pat Quinn (D) recently told his state’s enthusiastic Chamber of Commerce that workers comp reform will happen “this year.”

While some bipartisan efforts exist, Republicans generally push the reforms, which business groups and insurance trade associations support. And though many of these discussions have been brewing for years, the ongoing efforts seem to dovetail nicely with the anti-labor zeitgeist fostered in Wisconsin and Ohio, as stories of able-bodied workers gaming the system now abound in legislative halls.

Evergreen State battles over budgets and ‘lump-sum’ proposal

In Washington state, legislators are struggling with three huge, interrelated issues–the state’s operating budget, its construction budget and workers’ comp reform. House and Senate leaders are so divided that they failed to reach agreement last week when the regular term ended, so Gov. Chris Gregoire has called a special session to revisit the issues beginning April 26.

A ‘permanent battleground’

An April 23 article in the Seattle Post-Intelligencer had this to say about the longstanding feud:

A permanent battle ground for organized labor and business groups, the fight to reform the state’s compensation system for injured workers is heading into overtime after Gregoire deemed it a special session issue and the Senate backed that by putting a bill they want to move forward in their budget. Indeed, business groups and the Senate aren’t giving up a measure that would establish the option of lump sum settlements to the system — a move they will save hundreds of millions of dollars in costs. But labor remains opposed any kind of settlement, saying it undermines the point of the system — one created in 1911 to provide injured workers with money as they heal. The House has proposed its own package of bills that nip-and-tuck the system to streamline it, and they say those changes would add up to about half a billion in savings in the next six years.

Workers’ comp system faces insolvency

As we wrote in earlier in the year, “The Seattle Times calls “one of the most contentious issues in the legislative session.” In February, an emergency rate hike was pushed through, and in January the governor was being praised for a ‘bold plan’ to revamp the system.

“Now, despite progress on different bills, officials are saying hard choices loom ahead, with chances of having a bankrupt system within five years, according to a Feb. 26 piece in the Seattle Post Intelligencer, which reports that the governor, ‘the head of the state Department of Labor and Industries and the state auditor have all said the system is heading toward bankruptcy. In a December report, the auditor’s office said the state’s fund for workers compensation has a 95 percent chance of becoming insolvent in the next five years.’ ”

According to the DLI, about 8 per cent of workers’ comp claims account for nearly 85 per cent of costs, due both to injuries requiring longterm recovery and rehab and also for those awarded lifetime pensions.

Editorial calls for letting workers decide

An editorial in today’s Tacoma News Tribune argues that organized labor has stubbornly drawn a line in the sand and that the lump-sum option has plenty of worker safeguards:

Unions’ attacks on the proposal have a decidedly paternalistic tone. Critics essentially argue that workers don’t know what’s good for them and if given the option of settling their claims for about 80 cents on the dollar, they might just foolishly take it.

Lump-sum settlements would no doubt prove popular here, just as they have in the 44 states that offer them. Many injured workers prefer to get their money upfront rather than have it dribble out in regular checks. In some places, labor has embraced the choice as a worker benefit, which it is.

The settlements would be strictly voluntary, and several safeguards are built into the proposed system to ensure workers make the decision with their eyes open.

The new House proposal improves worker protections even further. Workers would have to wait six months to settle their claims to ensure that they weren’t pressured into premature decisions. Settlements couldn’t be offered to workers who already have pensions, and lump-sum settlements would be allowed for lost earning power only, not medical claims.

Those changes reduce the possible savings to the workers’ compensation system while still retaining a settlement option that would lend the system greater predictability.

Doing nothing should be out of the question. The status quo – a system in which Washington grants lifetime pensions at an unrivaled clip and where about 85 percent of compensation costs come from only 8 percent of all claims – is not sustainable without huge increases in payroll taxes.

Maybe the Governor can push the lege to finally reach consensus and get this problem solved for the workers of Washington State.

Next time: an update on other battles around the country.

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Frequently enough, a worker’s compensation case may be so complex as to demand legal representation. However, sometimes what seems like a cut-and-dried situation to an injured worker may result in a smaller award than envisioned–or even a denial. Have you, a friend or a loved one been injured on the job? Whether you’re merely seeking answers about your rights or believe a lawsuit may be necessary, be sure to seek counsel with attorneys trained and experienced in workers’ compensation. Here’s some resources:

Workers compensation basics

Injury on the job

Filing a claim

One thing about workers comp cases–the issues can be so broad that you never know what oddity may pop up.

For example, regular readers are aware that most states include undocumented workers in workers comp protection. We discussed a couple of such cases here, one from Michigan and one from Nebraska.

Undocumented workers protest in Michigan

Now Michigan is back in the news. Posted March 11 at WILX.com, this brief describes a protest at the state Capitol, including “[s]ome [who] were illegal immigrants, rallying for the state to grant them rights to workers’ compensation.”

State Rep. Rashida Tlaib (D-Detroit) has introduced a bill that would grant such coverage and was quoted as saying, “We’re only one of two states in the nation that does not allow workers that are undocumented to compensate when they are injured on the job.”

As might be expected, not all her colleagues agree with the idea, indicating its passage has a snowball’s chance…

Rep. Rick Jones (R-Grand Ledge) said, ““The only thing we should be giving illegal immigrants is a bus ride home.”

Jones, taking a “Michigan-workers-first” stance, brought up bogus Social Security IDs and the expense to companies to pay into the workers comp system.

But Tlaib “and others” countered with a point to ponder: pointing out “that requiring companies to pay workers’ comp might discourage them from hiring illegal immigrants in the first place.”

Ex-Deputy Warden cites nepotism as stressful

Now here’s a doozy, from a March 10 post with a Wilkes-Barre (PA) dateline: everybody knows somebody who’s felt disadvantaged by on-the-job nepotism. But in this case, former Deputy Warden Sam Hyder,  Luzerne County Correctional Facility, says nepotism was a major reason for the workplace problems that should leave him eligible for $800 a week in workers comp benefits.

“Hyder claims he suffers from work-related stress due to pressures brought on by” County Commissioner Chairwoman Maryanne Petrilla’s “hiring requests and threats, the suicide of a co-worker, his attendance at an inmate’s autopsy and the publicity he received for outing a drug-dealing prison guard.”

Petrilla has denied not only pushing Hyder to hire unqualified cronies but also says she did not single out Hyder for political reprisal.

According to the article, “Hyder was on medical leave from Aug. 28, 2009 until he was laid off from his $74,263 job in late January 2010. He testified Feb. 2 about how he ‘blacked out’ one day at work from the stress and suffers from anxiety, panic attacks and nightmares. On Tuesday, the county countered with five defense witnesses.”

At least one other employee, a secretary promoted to assistant business manager, seems to back up Hyder’s version, indicating that a “hiring list of the politically connected trumped applications from other qualified candidates.”

Said Jaqueline Grimes: “Everybody, commissioners, judges, magistrates, police officers, would be saying, ‘Give this person a shot. (Prison management) wanted to know, whose person it was. ‘John Doe is my guy, this one is (former Manager/Chief Clerk) Sam Guesto’s.’”

Fired workers say boss pushed her religion on them

And from Ohio, a March 3 AP account reminds us that freedom of religion just might encompass freedom from religion:

“After a sweeping scandal nearly five years ago that cost the state’s insurance fund for injured workers $300 million because of investments in Beanie Babies, rare coins and other risky assets, Ohio beefed up oversight and created a panel to help lawmakers look out for the health of the fund.

“Now, three years after lawmakers created the Ohio Workers’ Compensation Council to advise them on bills involving workers comp issues, the council finds itself entangled in chaos with a director accused of firing the entire staff amid allegations that she pushed her religion on employees.

“The three fired workers each sent letters to council members Tuesday accusing Director Virginia McInerney of wrongful discharge, religious discrimination and harassment, age discrimination and retaliation.”

Described as an occasional guest on “The 700 Club” who also was active in a large evangelical church,  McInerney was said to have led prayers at work and to have passed out religious CDs and at least one religiously themed book.

The piece quotes a former staff attorney as writing in a letter that “It became increasingly clear that the Director was judging employees not on professional performance but on the quality of their faith, according to her beliefs.”

McInerney denies the allegations and says she can’t comment on an ongoing case, but “that she saw no alternative under the law but to fire them.”

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Whether you’re an injured employee or an aggrieved employer, if you’re facing legal problems regarding workplace injuries, be sure to seek counsel with attorneys trained and experienced in workers’ compensation. Here’s some resources:

Workers compensation basics

Denial of benefits

Choosing an attorney