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.


Now Considering Firms for Our Network in

On Thursday, August 11 and Friday August 12, 2016, the workers’ comp bar descended on Austin for the

Workers’ Compensation Section’s Annual Conference for a two-day event of continuing legal education,

networking, and camaraderie. In addition to several other informative presentations, attendees were regaled

with knowledge about the Division’s rule-making authority by our own Jane Stone, and provided with a

thorough update on the designated doctor system by our DD guru, Erika Copeland. The social events this year

included a bowling tournament presented by the Workers’ Compensation Section. Led by David “The

Kingpin” Swanson, SLS tied for first place in the tournament.

Preparations for the Inaugural Reception for Kids’ Chance of Texas are being completed and we are

excited! SLS Partner Jane Stone is in charge of the event which will be held October 22, 2016 at

The Bullock Texas State History Museum in Austin from 6 to 8 p.m. Governor Greg Abbott, TDI

Commissioner David Mattax, DWC Commissioner Ryan Brannan, and our first scholarship

recipients (we already have two!)are among the invited speakers. There will be food, drink, a

presentation and a silent auction. If you would like to attend, please send your name, mailing

address, and email address directly to jstone@slsaustin.com and we will send you an invitation.

Individual tickets are $150. If you cannot attend but would like to make a donation, you can go to

www.kidschanceoftexas.org for PayPal, or send a check to P. O. Box 30111, Austin, Texas 78755.

Rabiat Ngbwa has been hired as the newest Hearing Officer in the Division of Workers’

Compensation. Most recently, Ms. Ngbwa served as a reviewing attorney at the Texas Workforce

Commission, where she was a Hearing Officer. Between her stints at the TWC, Ms. Ngbwa worked

as a consultant at the Equal Employment Opportunity Commission and then as an attorney with

Synergy Legal Professionals. She received her B.A. from Texas Lutheran University in 1997 and

her J.D. from Houston College of Law in 2003. She is also certified in both human resources and

mediation. Ms. Ngbwa will be the third traveling Hearing Officer in the Division’s central office.

Last month we informed you of Commissioner Brannan’s decision to authorize contested case

hearings to be held in the Metro Center Building, a.k.a., “Austin Central.” The expansion of

hearings sites was initiated as a “quick fix” to the surplus of recent work comp claims in the Austin

area and the Division’s inability to set disputes within the statutorily-mandated 60-day deadline for want of docket space. Officially, Austin has just one Hearing Officer, and the field office has only

one hearing room. Originally this temporary solution was to have extended only into September,

but because the high volume of cases has continued without abatement, the project has been

extended through at least December. How much longer this “temporary” remedy remains temporary

is anyone’s guess.

Maximum Attorney Fees Rate MIGHT Increase. The proposed rule would establish a new

maximum rate of $200/hour for attorneys and $65/hour for legal assistants. The proposed change

serves as the Division’s recognition that the cost of goods and services has increased significantly

in the last quarter-century. However, the Division’s hourly rate for legal services, which it adopted

in 1991, has not been updated until now. The low rates were beginning to discourage attorneys from

taking workers’ compensation cases when other, higher paying work is available. The increased rate

will provide injured workers with greater access to quality representation which is important to the

health of the system. The proposed new attorney fee rules will be found at DWC Rules 152.3, 152.4,

and 152.6.

DD Requests to be Attached to the DD Orders . . . Finally. Over the last few years, the DWC has

more than once reminded (admonished?) system participants to exchange the DWC 32 with the

opposing party when a DD request is made to the Division so that all are informed of what

information is being asked of the DD. The reminders were ineffective. Frequently, Carriers would

receive an order for a DD exam on extent of injury, for example, without having received the DWC

32. In the absence of the DWC 32, the Carriers were left without an understanding of what was the

injury the DD was asked to address. To resolve the “failure to exchange” problem, the Division has

elected a practical solution. Effective September 1, 2016, the Division will attach the DWC 32 to

the DD Order. Despite this practical solution, system participants are reminded that DWC 32s must

still be exchanged with all parties.

The Hearing Officer determined that the claimant, a truck driver, who stopped to assist a motorist

injured in an accident that did not involve the claimant sustained a compensable injury when his

knee later began to swell. The road on which he had been traveling was still blocked by the

accident, so after he rendered his aid, the claimant turned around and followed an alternate route to

his office. The Appeals Panel disagreed with the Hearing Officer’s determination that the claimant

had remained in the course and scope of his employment when he stopped to assist the motorist.

Although such aid rendered in the event of an emergency could arise during the course and scope

of employment if the employment is not deserted and the claimant’s actions are reasonable for

advancing the employer’s work interests, there was no evidence in this case that the claimant was

performing any action that he thought necessary for the employer’s business interests. His assistance of the motorist did not serve to clear the road, and an alternate route was available to him

to proceed with his work duties.

No Way Around it: Evidence of Impairment is Limited on Judicial Review is Limited to that

Presented to Division

The long-running litigation related to injured worker Daniel Samudio’s correct impairment rating

continues following the Texas Supreme Court’s decision in American Zurich Ins. Co. v. Samudio,

370 S.W.3d 363 (Tex. 2012) (Samudio I). TEXAS LABOR CODE § 410.306(c), provides, “Except as

provided by Section 410.307, evidence of extent of impairment shall be limited to that presented to

the division. The court or jury, in its determination of the extent of impairment, shall adopt one of

the impairment ratings under Subchapter G, Chapter 408.” In Samudio I, the Court held that if on judicial review a trial court finds that no valid impairment rating was presented to the Division in

the underlying contested case, the trial court may remand the claim to the Division to determine a

valid rating. Samudio I, at 368. The case was remanded to the trial court following Samudio I.

On remand, Mr. Samudio filed a motion for summary judgment on the issue of the correct

impairment rating. Attached to the motion was an affidavit and medical report supporting the 20%

impairment rating awarded by the Division in the contested case. The Carrier objected that this

evidence of impairment was not admissible because it was not presented to the Division. The trial

court overruled the objection, admitted the evidence, and granted summary judgment for Samudio.

The Houston Court of Appeals reversed and rendered explaining, “the evidence that Samudio

presented at summary judgment is precisely the type of evidence that the statute forbids, and

therefore, the trial court could not consider it.” American Zurich Ins. Co. v. Samudio, No. 01-15-

00478-CV, 2016 WL 4485818 *6 (Tex. App.–Houston [1st Dist.] Aug. 25, 2016) (Samudio II). The

court held that the Carrier had established as a matter of law that the 20% impairment rating was

invalid. Id.

An analysis by the Texas Department of Insurance shows that Texas’ use of the closed formulary

for prescription drugs in the workers’ compensations system is having a positive impact on both

Carrier’s wallets and on injured workers. Reporting on the study, www.workerscompensation.com

noted that total drug costs fell by 15%, N-drug costs fell by 80%, and prescriptions for N-drug

opioids fell 81%. The combination of lower costs and better care through less addictive prescriptions

shows the closed-formulary is working in Texas. For more information, visit here. In regard to

states which legalized marijuana, reports are that although opioid use is down, accidental poisonings

of children are on the rise.

The 2016 Rio Olympic Games brought the Zika virus to the forefront of national worry. The tropical

disease can cause brain damage and birth defects to infants of mothers infected in the womb, and

new studies suggest that Zika may cause brain damage in infected adults as well. As Zika creeps its

way into the United States from the tropical climates to our south, employers and carriers will likely

be presented with claims from injured workers alleging they contracted the disease in the course and

scope of employment. These claims will likely be very fact specific and require a challenging

causation analysis showing if, when and how the claimant contracted the disease while working.

On Monday May 23, 2016, the U.S. Supreme Court denied lien claimants’ petition for certiorari in the case ofAngelotti v. Baker. The denial effectively ends the litigation over the constitutionality of the lien activation fee imposed by SB 863, now Labor Code section 4903.06.                                                                                      

Labor Code section 4903.06 required payment of an activation fee of $100.00 to the Division of Workers’ Compensation prior to January 1, 2014 if the lien was filed prior to January 1, 2013. If the fee was not paid, the lien was subject to dismissal as a matter of law as of January 1, 2014. Due to litigation in the Angelotti case, the final day to pay the activation fee was extended to the end of December 31, 2015.

In Angelotti, several medical providers filed challenges to the constitutionality of the activation fee at the U.S. Ninth Circuit Court of Appeals. They argued that the activation fee was a forfeiture penalty and a governmental deprivation of their right to be paid.  However, the circuit court found that a lien is only an expectation of payment, so there was no governmental “taking” with the imposition of a fee. The expectation of payment was not property subject to governmental taking.  The DIR argued that the fee was akin to a user fee. The circuit court found that the activation fee was constitutional.

The plaintiffs requested reconsideration by the Ninth Circuit, which was denied. The only option remaining was to file a petition for certiorari to the U.S. Supreme Court, which they did.  The California Department of Industrial Relations submitted a waiver of its right to respond, but the U. S. Supreme Court requested a response, which was filed. After receipt of the response, the Court issued notice on May 23, 2016 that it was declining to hear the case. Thus, the circuit court decision stands.

What does this mean in practical terms?   Lien claimants subject to the activation fee who did not pay by the end of December 31, 2015 are deemed dismissed by operation of law without further action by the parties.  Select medical liens are exempted from the activation fee as follows:

  • A Health care service plan under Health and Safety Code section 1349
  • A Group disability insurer under Insurance Code, section 10270.5
  • A Self-insured employee welfare benefit plan under Insurance Code section 10121
  • A Taft-Hartley health and welfare fund
  • A Publicly funded program providing medical benefits on a nonindustrial basis.

Additionally, non-medical lien claimants are not subject to the activation fee, including liens for attorneys’ fees, living expenses, burial expenses, spousal and child support expenses, Employment Development Department liens, and Victims of Crime liens.

Questions?  Find your local Hanna Brophy attorney: www.hannabrophy.com/offices/