State News

NWCDN is a network of law firms dedicated to protecting employers in workers’ compensation claims.


NWCDN Members regularly post articles and summary judgements in workers’ compensations law in your state.  


Select a state from the dropdown menu below to scroll through the state specific archives for updates and opinions on various workers’ compensation laws in your state.


Contact information for NWCDN members is also located on the state specific links in the event you have additional questions or your company is seeking a workers’ compensation lawyer in your state.


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On Friday, February 4, 2022, Minnesota Governor Walz signed a bill into law that extended the workers’ compensation presumption for certain frontline professions through 2022. The prior law addressing this presumption expired on December 31, 2021. As of now, the new law is not retroactive to January 2022, but there may be legislation that addresses this later this year.

This law extends the presumption that has been in place for much of the pandemic. By way of reminder, this presumption indicates that employees working in first responder or healthcare occupations will be presumed eligible for workers’ compensation benefits if they either test positive for COVID-19 or are diagnosed by a licensed physician, physician’s assistant, or APRN without a test. In situations where a test has not been done, a copy of written documentation of the diagnosis shall be provided to the Employer and Insurer. The following occupations fall into this presumption:

·    Firefighter

·    Paramedic

·    Nurses or Healthcare Worker

·    Correctional Officer/Security Counselor at Minnesota Correctional Facilities

·    Emergency Medical Technician

·    Healthcare provider, nurse, or assistant employed with home care or long-term setting

·    Workers required to provide childcare to first responders and health care workers under certain Executive Orders

In summary, if an employee shows that he or she works within one of these occupations and either tests positive for or is diagnosed with COVID-19, the burden of proof will shift to the Employer and Insurer to rebut the presumption. Employers and Insurers will still be able to show that the employment was not a direct cause of the disease, but it will be much more difficult to prevail on a denial of liability when one of these types of employees contract COVID-19. To note, the date of injury in these situations shall be the date the employee is no longer able to work due to a diagnosis of COVID-19 or due to the symptoms later diagnosed as COVID-19, whichever occurs first.

Please contact CWK Attorney Parker Olson at (952) 525-6930 or parker.olson@cwk-law.com with any questions. 

Written by: Tracey Jones

Originally appeared on the Teague Campbell website.

Mary Betts v. North Carolina Department of Health and Human Services – Cherry Hospital

On February 1, 2022, the North Carolina Full Commission released a decision in the second extended benefits case since the Reform in 2011. The case was originally heard by Deputy Commissioner Robert Harris, who found that the claimant had proven by the preponderance of the evidence that she “sustained a total loss of wage-earning capacity” because of her compensable long-term ankle condition. The underlying facts are as follows: claimant, a 53-year-old healthcare technician, sustained an injury to her ankle while trying to restrain a combative patient.  Her injury required multiple surgeries. Claimant was a high school graduate with CNA qualifications, was involved in several volunteer activities, including Girl Scouts and the PTA, cut her own grass, and did crafts, including making flowerpots out of old car tires.  Claimant’s authorized treating orthopedic physician gave claimant sedentary work restrictions; however, claimant’s pain management physician, Dr. Elizabeth Bagsby, testified claimant would need a sedentary job that could accommodate elevating her leg above her heart and repositioning herself throughout the day.

Claimant’s vocational expert testified that claimant’s past employment history and education, as well as her sedentary work restrictions and need to elevate her leg throughout the workday, prevented her from being employable. Defendant’s vocational expert testified that claimant was employable and felt her need to elevate her foot could be accommodated in a sedentary position. The expert also identified several positions in the medical field that were sedentary in nature, which she believed claimant could perform.  The Deputy Commissioner noted in his Opinion and Award that the Defendant’s vocational expert did not meet or speak with the claimant, nor contact any of the identified employers to discuss claimant’s ability to perform the jobs.

The Full Commission panel, consisting of Wanda Blanche Taylor, James Gillen, and Adrian Phillips, gave greater weight to the testimony of claimant’s long-time treating physician rather than the pain management physician as it relates to claimant’s work restrictions.  The Full Commission noted that Dr. Thompson, the authorized treating physician, at no time opined that claimant needed to elevate her leg above her heart.  Additionally, the Full Commission noted there was no expert testimony or opinion that claimant was incapable of performing work. Furthermore, the Full Commission gave greater weight to the Defendant’s vocational expert as her testimony was consistent with the medical evidence indicating claimant had the ability to perform sedentary work and was more consistent with claimant’s demonstrated ability to perform valuable services, including organization, scheduling, supervision, and her reliability in her continued volunteer work.  The Full Commission noted that claimant was a likely candidate to perform flexible work from home or part-time work. The Full Commission went on to note that at oral argument, claimant’s counsel conceded that she could perform one to two hours of work a week for wages.

The Full Commission concluded that the extended benefits statute in N.C.G.S. § 97-29(c) does not invoke “disability” as defined in N.C.G.S. § 97-2(9), nor does it require the employee to prove that she is unable to obtain competitive employment. The Full Commission noted that the statute on its face requires the employee to prove “by a preponderance of the evidence that the employee has sustained a total loss of wage-earning capacity.”  The Full Commission interpreted this statutory language by using the plain, ordinary, and literal meaning of the words contained in the statute.  The Full Commission cited the Webster Dictionary which defined “total” as “complete;” “utter” and “loss” as “to bring to ruin or destruction;” and “capacity” as “ability.”  The Full Commission concluded using these definitions that claimant must prove by a preponderance of the evidence that she sustained a complete destruction of the ability to earn wages [emphasis added]. The Full Commission noted claimant’s ability to perform sedentary work in her volunteer activities, and claimant’s claim for extended benefits beyond the 500 weeks was denied.

Practical Takeaways for Defendants

This case is an excellent indication of how difficult it should be for claimants to prove they are entitled to extended benefits beyond the 500-week cap. If the injured employee has any ability to earn wages, albeit small, defendants should prevail assuming all the Commissioners follow the standard articulated above.  No doubt this case is probably heading to the North Carolina Court of Appeals, and we will keep you updated on its potential path through our Appellate Courts.

In the meantime, some practical takeaways when defending these extended benefit cases include:

    • Have a detailed understanding of the claimant’s job history, educational background, and daily activities, including volunteer activities.
    • Obtain detailed testimony, including dates, times, and follow-ups, from the claimant regarding their job search, or lack thereof.
    • Use credible experts.
      • Solid expert opinions, both medical and vocational.
      • The vocational expert should meet with the claimant in person to identify jobs within the claimant’s labor market that are readily available considering their work restrictions and educational and vocational background.
      • The vocational expert should contact potential employers to determine the likelihood that the claimant can secure employment within their work restrictions.

Our team will continue to monitor the developments as this issue works its way through our court system. If you have questions or wish to discuss how to best position yourself in potential extended benefits matters, please reach out to Tracey Jones or a member of our Workers’ Compensation Team. 

Income Benefits

O’Bryan v. Zip Express, (2020-SC-02620WC, not final) – The Supreme Court of Kentucky

Claimant was found by the ALJ to be permanently and totally disabled following a work-related motor vehicle accident. Claimant was 65 on the date of accident. Claimant appealed the award, arguing the age 70 cap on indemnity benefits under KRS 342.730(4) is an unconstitutional violation of equal protection.

The Court of Appeals found KRS 342.730(4) and the age 70 cap is constitutional both on its face and as retroactively applied (applies to all cases not fully and finally adjudicated as of the effective date of the act, 7/14/2018). The Supreme Court affirmed, consistent with its opinion in Kroger v. Cates, 627 S.W.3d 864 (Ky. 2021).

Employee v. Independent Contractor

AIG v. Oufafa, et. al., (2020-CA-0942-WC, not final); Taxi, LLC d/b/a Taxi 7 v. Oufafa, et. al., (2020-CA-0946-WC, not final) – Kentucky Court of Appeals

Taxi 7’s business is leasing taxicabs and related services, including dispatch and credit card processing to individuals, corporations, partnerships and other entities. Claimant signed a Lease agreement with Taxi 7 agreeing to pay $405 weekly for a cab lease, dispatch services, and credit card processing services, as well as $30 weekly for vehicle insurance. He also signed a paper titled “Status as a Self-Employed Businessperson,” in which he clearly acknowledged he was not an employee and not entitled to workers’ compensation benefits. Claimant could operate the cab as he saw fit, choose his hours, charge his own rates, and keep his collected fares.

Claimant filed for worker’s compensation benefits after being shot while driving. ALJ found Claimant was an independent contractor and Taxi 7 was a taxicab leasing company. While the ALJ did find that cab driving was an integral part of Taxi 7’s business of leasing cabs, the ALJ concluded that driving passengers was a distinct occupation different than the leasing of cabs.

The appellate Board reversed, finding that the ALJ incorrectly concluded that Taxi 7 was a taxicab leasing company rather than a taxicab company that employed the Claimant as a driver. The Court of Appeals reversed the Board, stating that the ALJ’s finding of fact that Taxi 7 was a taxicab leasing business and Claimant was not an employee was supported by the facts and not clearly erroneous. The Court emphasized Claimant received no remuneration from Taxi 7 and his earnings all came directly from his customers.

 

Should you have any questions or wish to discuss any related matters, please contact us at your convenience.

H. Douglas Jones, Esq. – djones@jsbattorneys.com, 859.594.4200

Margo Menefee, Esq. – mmenefee@jsbattorneys.com, 859.594.4200

DWC Shows HCPs Some Love and a Friendly Reminder

 
In January, the DWC announced new training opportunities for health care providers and their medical staff who participate in the workers’ compensation system.  The Division’s on-demand training topics for HCPs include reimbursement policies and methodologies and billing and reimbursement for DDs, RMEs and other MMI/IR providers. The DWC also announced upcoming HCP Lunchtime Webinars.  February topics include Medical Fee Dispute Resolution and The Preauthorization Process: Utilization Review and Medical Necessity.  

You can take a look at the on-demand training topics here
 
Fun Fact:  No where in any of the DWC materials is there a provision for a designated doctor to seek reimbursement for a no-show appointment.  If you are seeing bills for claimant’s failing to attend a DD examination – you should not be!
 
The Division reminded HCPs that they need to disclose their financial interests (and those of their immediately family members) in imaging centers, physical therapy and work hardening clinics and other facilities if they refer patients to those facilities.  The reason for such disclosure – reducing the likelihood of HCPs making unnecessary referrals in order to pad their own wallets. 
 

Lonely Hearts' Club


Blame it on supply chain issues, COVID or Zoom BRCs, but we recently ran into one of the saddest things we have seen lately.  The winner of the Lonely Hearts’ Award February 2022 is this lonely vending machine in the corridor of the Lubbock Field Office of the DWC.
 

A Time for Love and A Time for Audit


Carriers:  It’s that time again.  Every two years, the DWC audits insurance carriers through PBO.  The majority of the audit focuses on timely payment of TIBs and processing of initial medical bills. Other measures include timely processing of requests for reconsideration of medical bills and timely submission of EDI data for initial payments and medical bill processing. The relevant time frame for the audit: 1/1/22 through 6/30/22. You can get more information here

HCPs: The DWC announced its approval of the 2022 Medical Quality Review audit this month. This year, the audit will focus on the reasonableness of return-to-work decisions and recordkeeping and the use and effectiveness of spinal cord stimulators.

We gave you a sneak peak of the proposed Shoulder Surgery Plan-Based Audit in our November newsletter. On 1/13/22, the DWC announced that audit plan was approved. It will be interesting to see if the audit results in a curtailing of distal clavicle resections in routine shoulder surgery as those procedures can, without careful monitoring and/or litigation, result in significantly higher impairment ratings for shoulder injuries.
 

 


Who Doesn't LOVE Safety?


The Division recently announced its 2022 Safety Pro Seminars.  New safety professionals and coordinators can enjoy free online courses in Safety and Health Program Development and Recordkeeping beginning in February.  

More information is available here.

Exclusive Love


On 1/25/22, in Reyes v. Lubrizol Corp., the Texas 14th Court of Appeals upheld an exclusive remedy defense asserted by a property owner in a lawsuit filed by a welder who alleged he suffered injuries as a result of the negligence of two employees.  The court addressed “the nuanced but not uncommon situation where a non-employer secures - by written agreement - workers’ compensation employer’s status over the employees of others.”  The court held that it was proper for the trial court to grant summary judgment dismissing the complaint made by the welder asserting the exclusive remedy. This was a classic scenario where a general contractor entered into a written agreement to provide workers’ compensation insurance coverage to the subcontractor and its employee. That agreement made the general contractor the employer for purposes of workers’ compensation law and, by extension, covered the actions of the subcontractor’s employees under the exclusive remedy provision of the Workers’ Compensation Act. See the entire opinion here.
 

Do We Love This Change?


The Division recently solicited comments on proposed changes to EDI Rules. According to our good friend Steve Nichols of Sentinel Governmental Affairs, the biggest issue is the short window of time provided for testing of the submission of claims EDI data.  In comments to the rule, Steve proposed additional time for testing so that insurance companies, EDI trading partners and the DWC could ensure successful claims data reporting. Steve cautioned the DWC and stakeholders to avoid a repeat of the NPI EDI data element change that resulted in enforcement actions, that could have been eliminated with adequate testing.  We await the DWC rule changes and hope that adequate consideration is given to these concerns.
 

No Love for this Fraudster


Earlier this month, DWC announced the arrest and indictment of a Houston area businessman who ran a $1.1 million insurance fraud scheme over a period of seven years. Kunal “Sonny” Puri had been charged with hiding employees and their payroll information under different companies in order to lower workers’ compensation insurance premiums payable to Texas Mutual, Service Lloyds and Travelers. If convicted, Puri faces up to 99 years in prison.