Workers’ comp finally gets overhaul

By DEBORAH A. MILES
Gov. Eliot Spitzer signed into law on March 13 a new reform plan that will increase benefits for injured workers and provide automatic cost-of-living increases in the future.

The maximum weekly benefit for an injured worker will jump to $500 this year, up from $400. The new minimum benefit rises to $100, from $40.
According to workers’ compensation attorney Ed Pitts, who addressed nearly 100 participants at a joint PEF/NYS health and safety conference in March, the reforms are the first since 1996, and the benefit increases are the first since 1992.

Pitts told the audience the NYS AFL-CIO, the Business Council of New York and legislative staffs had worked since December 1 to put the deal together.

Jonathan Rosen, PEF director of occupational safety and health, said organized labor fought for the cost-of-living increase for more than a decade.

“For the past 15 years, efforts to increase benefits and institute automatic cost-of-living increases failed because they were tied to unacceptable give-backs at the expense of injured workers,” Rosen said.

Funding source
Reducing the length of time “permanent partial disability” benefits will be paid to injured workers will offset the cost of the increases and should save employers up to 15 percent in workers’ compensation premiums.

“The law will be applied prospectively to allow current recipients to continue receiving compensation,” Pitts said. “Partially disabled people will continue to receive lifetime medical services and will get training to help them return to work.”

Pitts said the savings would allow the maximum payments to increase annually, up to $650 in 2009. The payment would be two-thirds of the state’s average weekly wage in 2010. After that, the benefit will rise with the cost-of-living index.

Rocket docket speeds claims
Conference panelist William Donovan, assistant council leader of PEF Division 285 at the Workers’ Compensation Board, said the new reform will create a “rocket docket” to speed up the currently slow claim process. He advised members who get injured to file a claim as soon as possible and no later than two years after the accident date.

Dr. Jean McMahon, another panelist, said those injured should consider using the state’s network of occupational health clinics and to make sure their physicians realize the injury or illness is work-related.

“This legislation will allow those injured to return to work sooner because it provides for prompt medical treatment,” said PEF President Ken Brynien. “It also allows the state to penalize employers who lack workers’ compensation insurance and includes anti-fraud measures that are expected to save $100 million a year by forcing more employers to pay into the system.”

Time will tell
Bernie Kahn, a longtime PEF health and safety activist at the state Insurance Fund, said, “I’m leery of the capping of the permanent partial disability because ‘the devil is in the details.’ I’ve seen details kill the intent of the law. I hope it’s not going to happen this time.

“You don’t know until you see the legislation, the promulgation of rules by the comp board, and what the courts will say,” Kahn said. “That will take one, three or five years to play out.”

The Communicator April 2007

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