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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October 2021

Tennessee Enacts New Telehealth Regulations and New Medical Panel Form

Effective October 19, 2021, the Tennessee Bureau of Workers’ Compensation adopted new regulations addressing the use of telehealth in the context of workers’ compensation claims. The purpose of the rules is to provide Tennessee workers’ compensation claimants with an option to utilize telehealth while treating for their injuries.

Under the regulations, telehealth may only be provided with the voluntary consent and agreement of the injured worker and the willingness of the healthcare provider. However, telehealth is not permitted for conditions which require an in-person physical examination. The regulations provide several examples of such conditions, including chest pain, significant burns, deformity of an extremity or suspicion of a fracture, and any bleeding that has not already stopped by direct pressure. However, this list is not exhaustive.

The treatment provided via telehealth is subject to utilization review and must follow all Tennessee standards of medical practice. The use of telehealth does not change any of the requirements for causation, date of maximum medical improvement, or permanent impairment ratings.

Employers are still subject to the same requirement to provide a medical panel to injured workers, and the panel must still include at least three medical providers who are qualified, willing, and able to timely treat the worker’s injury
in person, but the panel doctors may also provide their services via telehealth with the employee’s consent. Before receiving medical benefits in the form of telehealth, the injured worker must be given an opportunity to receive in-person treatment. An injured worker may refuse a telehealth encounter at the time of the panel choice without affecting future care to which the injured worker is entitled. 

The newly revised C-42 Medical Panel form also includes a space for an optional fourth choice of physician, which is a telehealth-only provider. However, this does not alleviate the employer’s obligation to still list three medical providers who can see the employee in person.

At any point during the initial visit or follow-up medical visits, the injured worker may refuse telehealth and request in-person care. If the authorized treating physician who is chosen from the medical panel declines to see the injured worker in person, the worker must select a new authorized treating physician from the names remaining on the original panel. The subsequent choice will become the new authorized treating physician.

The Tennessee Medical Fee Schedule applies to providers of telehealth services, and coding and billing regulations must follow the Medicare guidelines in effect for the date of service with no geographic qualifier.

These new regulations will have several practical effects on the way that employers, carriers, and third-party administrators handle their Tennessee claims, including:

Medical panels must now be provided on the newly revised medical panel form C-42, which may be found at https://www.tn.gov/content/dam/tn/workforce/documents/Forms/c42.pdf. 

- Regardless of these new telehealth rules, the medical panel still must include three or more doctors, surgeons, chiropractors, or specialty practice groups who are located in the employee’s community, and who are able to treat the employee
in person. 

When completing the medical panel form C-42 with the three medical providers who can see the injured worker in person, the medical panel form also requires that the employer indicate whether those providers also have a telehealth option, and if so, document that on the panel.

In addition to the three “in-person” medical providers, employers now have the option of including a fourth option, which is a telehealth-only option.
  However, note that there are several types of medical conditions that cannot be treated by telehealth, and that the injured worker always retains the right to refuse the telehealth option.


For any questions, please contact:

Fredrick R. Baker, Member
Wimberly Lawson Wright Daves & Jones, PLLC
1420 Neal Street, Suite 201
P.O. Box 655
Cookeville, TN 38503-0655
Phone: 931-372-9123
Fax:  931-372-9181
fbaker@wimberlylawson.com
www.wimberlylawson.com



Claimant filed a Petition seeking 14% permanency to the right upper extremity (shoulder), as rated by Dr. Rodgers. Following a Hearing, the Board issued a Decision, commenting that although they felt that there was likely some applicable permanency rating due to the work injury, Claimant had not met his burden of proof as to there being 14% impairment. The Board specifically noted that it was uncomfortable with Dr. Rodgers’ permanent impairment rating when his testimony made it clear that he had not reviewed medical records documenting prior right shoulder injuries and treatment. 
Claimant then provided Dr. Rodgers with the pre-existing medical records. Dr. Rodgers issued an addendum maintaining the same rating. Claimant re-filed the Petition.
Following a Legal Hearing, the Board dismissed the Petition, finding the same was precluded by res judicata and/or collateral estoppel.
Should you have any questions regarding this Decision, please contact John Ellis or any other attorney in our Workers’ Compensation Department.
St. James v. State, IAB Hrg. No. 1490378 (Oct. 28, 2021)(ORDER)

Some West Virginia businesses have implemented COVID-19 vaccine mandates for employees. While the West Virginia COVID-19 Jobs Protection Act (W. Va. Code § 55-19-1 through § 55-19-9) protects people, businesses, and entities from some COVID-19 related claims, the Act does not address whether employees who suffer an injury from a COVID-19 vaccine mandated by their employers may bring a workers' compensation claim. This issue has not yet come before West Virginia courts and there is no state case law on the subject.

 

To receive benefits under West Virginia workers’ compensation law, an employee must show the employee sustained (1) a personal injury (2) in the course of employment and (3) resulting from that employment. W. Va. Code §23-4-1(a). Arguably, if a COVID-19 vaccine is a required condition of employment and an employee receives the vaccine pursuant to that mandate, an employee injured by the vaccine may be able to show that they were injured in the course of and as a result of that employment. Relevant factors may include whether the vaccine was received by the employee on-site and during work hours or on the employee’s personal time and at a different location other than the employee’s work location.  

 

Vaccine injuries are rare, and even if the employer mandates the vaccine, causation may be difficult to prove. The employee must prove that the injury was a direct result of the vaccine rather than some other source. Because of the rarity of COVID-19 vaccine injuries beyond the typical vaccine after-effects (sore arm, fever, mild symptoms), true injury resulting from an employer-mandated COVID-19 vaccine will likely be infrequent and difficult to attribute to the vaccine. Workers’ compensation insurance carriers and third-party administrators should require proof of a definitive diagnosis or injury directly related to the COVID-19 vaccine before holding the injury compensable.

 

While some employees may attempt to avoid the exclusive remedies provided by workers' compensation by asserting a deliberate intent claim, the West Virginia COVID-19 Jobs Protection Act may insulate employers from such claims. The Act specifically insulates employers from deliberate intent claims for COVID-19 infections and may also apply to injuries from vaccine mandates. This issue has not been litigated in West Virginia.

 

Employers should also be mindful of the West Virginia Legislature's recent passage of House Bill 335 that will allow employees to obtain medical or religious exemptions from their employers’ vaccine mandates. The bill was signed by Governor Jim Justice on October 22, 2021, and will go into effect 90 days thereafter.

By:

Charity Lawrence

304-720-4056

clawrence@spilmanlaw.com

 

Dill Battle

304-340-3823

dbattle@spilmanlaw.com

 

Spilman Thomas & Battle, PLLC

300 Kanawha Blvd, E.

Charleston, WV 25301

 

Spilman Thomas & Battle, PLLC is the West Virginia member of the National Workers' Compensation Defense Network. The NWCDN is a nationwide network of defense firms specializing in protecting employers and carriers in workers' compensation claims and regulatory matters. For more information, visit www.nwcdn.com.

Written by: Lindsay Underwood

Originally posted on Teague Campbell Dennis & Gorham website.

While COVID-19 continues to spread, many businesses are working to keep their doors open and stave off another shutdown. As part of that effort, and because of the recent full FDA approval of the Pfizer vaccine, we are seeing a trend toward mandatory vaccination policies. This raises questions about how mandatory vaccines, and possible adverse reactions, could result in new workers’ compensation claims. We can reference existing vaccine policies to determine when insureds could bear the responsibility for providing benefits where an employee sustains an adverse reaction to a mandatory vaccine. We will argue that when a vaccine is encouraged, but not mandated, any adverse reaction does not arise out of the employment. However, once it is mandated, it is nearly impossible to argue that any compensable occupational disease or injury by accident arising out of that mandatory vaccine no longer arises out of the employment.

N.C.G.S. § 97-53 (13) provides that an occupational disease must be “due to causes and conditions which are characteristic of and peculiar to a particular trade, occupation or employment, but excluding all ordinary diseases of life to which the general public is equally exposed outside of the employment.” The NC Supreme Court has held that this provision requires that the disease is (1) characteristic of persons engaged in the particular trade or occupation in which the claimant is engaged; (2) not an ordinary disease of life to which the public generally is equally exposed with those engaged in that particular trade or occupation; and, (3) there must be a causal connection between the disease and the claimant’s employment. Rutledge v. Tultex Corp./Kings Yarn, 308 N.C. 85, 93-94, 301 S.E.2d 350 (1983).

In cases where the employment exposed the employee to a greater risk of developing the disease than the general public, the first two elements listed above are satisfied.  Thus, any employee arguing an entitlement to benefits after sustaining an adverse reaction from a mandatory COVID-19 vaccine will have to prove they are at an increased risk of developing their condition as a result of the employment, and also establish a causal connection between their reaction and employment. NC courts require a link between the nature of the employment and the alleged disease.

If an employee is required to receive a COVID-19 vaccine as a term of their employment, any medically connected adverse reaction to that vaccine would likely be determined to have placed the employee at an “increased risk” of developing that reaction due to the employment. The third element of the Rutledge test is satisfied where the occupational exposure “significantly contributed to, or was a significant causal factor in, the disease’s development.” The NC Supreme Court has held that where expert opinion testimony is based upon speculation and conjecture, it is not sufficiently reliable to qualify as competent evidence on medical causation. The evidence must take the case out of the realm of conjecture and remote possibility.

In one case, Kai-Ling Fu v. UNC Chapel Hill, 188 N.C. App. 610, 655 S.E.2d 907 (2008), the employee reported an adverse reaction after being required to be vaccinated against a Venezuelan virus as part of her research position. The employee reported that, after the vaccination, she experienced headaches, fever, and shortness of breath. She was prescribed an inhaler and was referred to counseling due to anxiety. She was also instructed to remain out of work due to fatigue. The Court of Appeals held that the employee was at a higher risk than the general public of developing her symptoms. It was specifically noted that when an individual has to take a vaccine because of their employment they are likely at an increased risk for having systemic side effects, as opposed to that of the general public.

Based on the above, it is likely that any adverse reaction from a mandatory COVID-19 vaccine would result in exposure for a workers’ compensation claim. As in any other alleged occupational disease claim, the employee would still need to prove the elements of the Rutledge test, to include showing a causal relationship between any symptoms and the vaccine. We may also have a defense under the “peculiar sensitivity” theory, where an employee’s sensitivity to a vaccine makes their reaction unique. Though that defense is difficult to prove, it should be part of any post-injury investigation. Although most of the cases will be analyzed under the occupational disease standard, we may end up with injury by accident exposure as well. If the vaccine itself is not administered properly and the employee is injured during the administration of the vaccine, that could be seen as an injury by accident. Under either argument, the main investigation will be whether the alleged adverse reaction is truly from the vaccine and not from some other pre-existing condition that the employee might have.

Have questions on the compensability of adverse reactions to mandatory vaccines or other workers’ compensation issues? Reach out to our workers’ compensation team!

By Attorneys AlisonStewart and Nick Cooling, and Law Clerk Jordan Gehlhaar

Recent arbitration decision, Rife v. P.M.Lattner Manufacturing Company, reviewed apportionment of disability and an employer’s right to a credit. The issue in this case was whether the employer was entitled to a credit for 29.6 percent industrial disability it paid as settlement of a prior shoulder injury.

Claimant Rife worked as a welder at P.M. Manufacturing for most of his career. In 2009 he experienced a work-related right shoulder injury resulting in surgery and permanent functional impairment. Rife and P.M. entered into a full commutation settlement in 2010, which stipulated to a permanent disability of 29.6 percent to the body as a whole. At this time, the shoulder was not a scheduled member, so all shoulder injuries were to the body as a whole. Three different doctors provided impairment ratings, but it was not clear which rating was the basis of the settlement. Rife returned to work for P.M. after this injury.

Claimant Rife had no issues with his right shoulder until experiencing another work-related injury in 2018.  He underwent another surgery and was diagnosed with adhesive capsulitis, partial thickness tears of the rotator cuff and labrum, and impingement. The claimant obtained an independent medical examination (IME) that assessed a 19 percent right upper extremity impairment, or 11 percent of the whole person. Importantly, the doctor did not distinguish between the 2009 and 2018 injuries when assessing the claimant’s impairment.

The employer sought apportionment of disability under Iowa Code 85.34(7) for successive disabilities, which provides, in part:

“An employer is not liable for compensating an employee’s preexisting disability that arose out of and in the course of employment from a prior injury with the employer, to the extent that the employee’s preexisting disability has already been compensated under [workers’ compensation law].”  

The Deputy found the employer was not entitled to a credit for the loss assigned to the first injury “under the version of Iowa Code section 85.34(7) that is now in effect.” Previous versions of this statute explained how an offset was to be calculated. But in this version, the legislature provided no mechanism for apportioning the loss between a present injury and prior injury.

Additionally, it was reasoned: (1) the settlement agreement for the first injury did not specify what impairment rating the parties adopted, (2) the employer did not obtain an impairment rating for the second injury or an expert opinion apportioning the two injuries, and (3) a claimant with a prior unscheduled shoulder injury and a subsequent scheduled shoulder injury would likely not receive any additional compensation.

The opinion suggests that an employer is more likely to receive a credit where it is clear what impairment rating was used for both the first and second injuries, the second rating doctor differentiates the percentages for each injury, and the employer provides an expert on the issue.  However, based on the Agency’s interpretation of the statute, apportionment credit is not likely absent legislative amendment.


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Peddicord Wharton Legal Updates are intended to provide information on current developments in legislation impacting our clients. Readers should not rely solely upon this information as legal advice. Peddicord Wharton attorneys would be pleased to answer any questions you may have about this update. ©2021 Peddicord Wharton. All Rights Reserved.

By:  Jeannette Herrera (Associate Attorney - Sacramento)

The Federal Occupational Safety and Health Administration (OSHA) published its highly anticipated Emergency Temporary Standard (ETS). As expected, employers with 100 employees or more are required to ensure their workforce is fully vaccinated or provide a negative test result at least once a week. In a likely effort to to encourage employees to choose vaccination over testing, the ETS does not require employers to pay for testing to workers who decline the vaccination.

Employers are further required to pay for employee time off to get vaccinated and provide sick leave for workers for any recovery time following the vaccination.

Health care workers must be vaccinated and are not provided the option of weekly testing. Unvaccinated employees must continue to wear face coverings. Employers also must obtain specified vaccatination documentation; a self-attestation is only allowed if the vaccination record is lost/cannot be produced along with acknowledgments of criminal penalties.

OSHA submitted its proposed ETS to the White House for the Office of Management and Budget to complete a regulatory review, and OSHA published a draft to the public yesterday, November 4. Today, November 5, the ETS was published in the Federal Register and is effective immediately. For those states subject to OSHA, the vaccination and testing implementation requirement deadline is January 4, 2022.

Although not subject to OSHA, California employers should expect a similar and applicable regulatory standard. Cal/OSHA has thirty (30) days, or until December 4, to adopt a standard that is at least as restrictive of the anticipated federal ETS. California employers may also see a similar January 4, 2022 implementation deadline for mandatory vaccination or testing.

Learn more here:  https://www.npr.org/2021/11/04/1048939858/osha-biden-vaccine-mandate-employers-100-workers


Written by: Elizabeth Ligon

On October 7, 2021, Deputy Commissioner Wes Saunders issued an Opinion and Award in Tapper v. Penske Logistics, LLC, awarding the claimant extended benefits. This is the seventh decision on extended benefits that has been issued at the Deputy Commissioner level.

By way of background, the claimant sustained two compensable injuries to his back while delivering newspapers for Defendant-Employer. The claimant was 64 years old when the Opinion and Award was issued. His first date of disability was July 25, 2011. Following several surgeries, Dr. Dennis Bullard opined that the claimant was totally disabled and precluded from gainful employment. The claimant was referred to Rex Pain Clinic for pain management, but his care was subsequently transferred to his primary care provider, Dr. Kirsten Avery, due to a lack of improvement. Dr. Avery saw the claimant once every three months for medication refills. She testified that the claimant lacked the functional capacity to return to work in any capacity. Deputy Commissioner Saunders found her testimony credible based on her familiarity with the claimant and her status as the claimant’s primary care provider for over twelve years.

Prior to the hearing, the claimant obtained a second opinion evaluation with Dr. Charles Goodno and retained Michael Fryar as an expert in vocational counseling. Dr. Goodno did not have a complete copy of the claimant’s medical records and did not consider that the claimant was recovering from several unrelated surgeries when he tested the claimant’s physical abilities. Consequently, Dr. Goodno’s testimony was given less weight by Deputy Commissioner Saunders because his opinions were based on incomplete information. However, Mr. Fryar testified that because the claimant had not been released to return to work in any capacity by any of his medical providers, his search for employment would be futile. Deputy Commissioner Saunders found Mr. Fryar’s testimony credible and concluded the claimant had carried his burden of proving a total loss of wage earning capacity through Dr. Avery and Mr. Fryar’s expert testimony. Plaintiff was awarded extended benefits and ongoing medical compensation.

What can we take away from this case?

This claim is a good reminder that defendants need solid expert opinions, both medical and vocational, that support a finding that a claimant is capable of participating in some form of employment. It is not enough to merely attack the credibility of claimant’s expert witnesses. It is also helpful to have a detailed understanding of claimant’s job history, educational background, and daily activities, including volunteer activities.

Our team will continue to monitor extended benefits cases as they work their way through our court system. If you have any questions about extended benefits, contact a member of our workers’ compensation team.

For a more detailed list of practical takeaways when defending against extended benefits cases see our article Early Trends in North Carolina Extended Benefits Cases and How Comparable Jurisdictions in the Southeast Have Analyzed Similar Statutory Caps.

H&W New York Workers' Compensation Defense Newsletter
Vol. 6, Issue 1

Hamberger & Weiss LLP Celebrates 30 Years! 

July 1, 2021 marked our firm’s 30th anniversary. At our founding in 1991, we were eight attorneys. Over three decades we, along with our partner clients, have been witness to enormous changes in the New York Workers’ Compensation system, including the 1996 reforms with the adoption of Section 32 Settlements, the creation of e-Case in 1999, the Medicare Set-Aside issues which arose in 2001, the 2007 Reform Legislation with durational caps on PPD benefits and the Rocket Docket, the closure of the Second Injury and Stale Claims Funds and, most recently, the implementation of the Virtual Hearing system which allowed for nearly uninterrupted adjudication of claims during the COVID-19 pandemic.

Over these thirty years we have worked side-by-side with you, our valued clients, to navigate through all of these changes and opportunities. In the process our firm has grown to forty attorneys, representing our clients at hearings statewide through the Virtual Hearing system, as well as the related work of 32s, MSAs, Conditional Payment resolutions and Loss Transfer arbitrations.

It has been our privilege to serve you for all these years, and we look forward to continuing our relationships for the next 30 years! 

Board Requires Affidavit of No Separate Agreements with Section 32s

Earlier this month, the Board announced a new policy, effective 12/6/21, that will require the person signing a Section 32 agreement on behalf of a carrier/self-insured employer or third-party administrator to also sign an affidavit attesting that there are no separate agreements between the parties not reflected in the Section 32 agreement and that the claimant was not required, as a condition to entering into the Section 32 agreement, to enter into a separate agreement or contract in the future. The Board is concerned about employers that require claimants to sign a separate release of liability or other contract, the terms of which are not included in the Section 32 agreement submitted to the Board. The Board’s stated reason for the Board’s concern is that it is not able to determine whether a Section 32 agreement is “unfair, unconscionable, improper as a matter of law or was the result of an intentional misrepresentation of material fact” if all of the terms and conditions between the parties are not written in the Section 32 settlement agreement. 

One important issue overlooked by the Board is that, generally, Section 32 settlement agreements are signed by the carrier, third-party administrator, or defense counsel for one of those entities. The agreements that the Board is concerned with are between the employer and the claimant. This will, in most cases, put the person who has historically signed the agreement, usually an adjuster or attorney for the carrier, to have to attest under the penalty of perjury to the non-existence of an agreement between the claimant and the employer even though that adjuster or attorney might not be aware of such an agreement. We submit that the claimant would have direct knowledge as to any side agreement and the ability to affirm that  no such side agreements exist beyond those cited in the Section 32. As of this moment, however, the Board has not adopted a form affidavit for signature by the claimant to so attest. 

The Board said that it would not approve any Section 32 agreement conditioned upon the claimant signing a separate agreement or contract that contains terms which are not included in the Section 32 agreement submitted to the Board. That said, the Board noted that a Section 32 agreement which included terms providing that a claimant would release an employer from liability would not necessarily be invalid. However, the Board would give “significant scrutiny” to such terms due to what the Board called the “disparity in bargaining power and financial resources between individual claimants and insurance carriers/self-insured employers.” The Board previously used such language in prohibiting provisions of a Section 32 agreement that require the claimant to indemnify and hold the carrier harmless for any payment made by Medicare for treatment of claimant’s work-related injuries prior to the execution of the Section 32 Waiver Agreement.  SeeSubject Number 046-372 (3/2/2020).

Although the Board appears to be allowing employers and carriers to include release language in the Section 32 agreement (notwithstanding the Board’s extra scrutiny of such language), it remains to be seen whether the Board will allow or require separate contracts to be appended to the Section 32 agreement as an exhibit. Our expectation is that the Board will not allow this as the Board’s announcement was written with the intent of curtailing such language by allowing release language only within the Section 32 agreement and, even then, giving strict scrutiny to such language when included. 

Employers that wish to continue to use side agreements and general releases in conjunction with Section 32 settlement will need to be prepared to have the language of these agreements reviewed by the Board and consider whether they will be willing to proceed with a Section 32 agreement in the event that the Board invalidates the release language as “unfair, unconscionable, improper as a matter of law.” 

Additionally, coordination with the claimant's attorney before the Section 32 hearing will be needed in order to prepare the claimant to answer the Law Judge’s questions about any side agreements. If the claimant testifies that he or she understands the side agreement, wants the Section 32 agreement to be approved, and believes the overall deal is fair, we think that it would be difficult for a Law Judge to find the agreement unfair or unconscionable. The Law Judge's refusal to approve a Section 32 agreement despite such testimony may provide a good basis for an appeal.

Please do not hesitate to contact any of our attorneys with questions about this new policy.

Court of Appeals Denies Motion for Leave to Appeal in Quigley - Medical Marijuana Permitted in New York Comp

On 9/14/21, the Court of Appeals denied the carrier’s motion for leave to appeal the Appellate Division’s 2/25/21 decision in Quigley v. Village of East Aurora. Recall that the Quigley case affirms authorization and use of medical marijuana for treatment of injuries in the New York Workers’ Compensation system. The Appellate Division had held that Federal law classifying marijuana as a Schedule 1 controlled substance did not inherently preempt New York State legislation regarding the prescription and use of medical marijuana. It also held that reimbursing a claimant for out-of-pocket costs associated with purchasing medical marijuana legally prescribed under New York State law is unlikely to be considered aiding or abetting Federal controlled substance crimes. Furthermore, the Appellate Division ruled that authorization and use of medical marijuana in the New York Workers’ Compensation system does not conflict with other New York State legislative provisions outside the Workers' Compensation Law stating that insurance carriers are not responsible for payment for medical marijuana. The Court distinguished those other legislative provisions outside the Workers Compensation Law, because Section 13 of the Workers' Compensation Law explicitly states that workers' compensation insurance carriers are liable for essentially all forms of causally related medical treatment arising from a compensable injury.

Given the Court’s refusal to hear the case, the Appellate Division’s decision in Quigley is controlling. Medical marijuana is permitted in the New York Workers’ Compensation system, subject the Board’s rules and regulations. 

Court of Appeals Grants Motion for Leave in Case Allowing PPD Benefits After Death

On 9/24/21, the Court of Appeals granted the employer leave to appeal the Appellate Division’s decision in Green v. Dutchess County BOCES, which we reported on back in March 2020. Our readers will recall that the Green decision found that when a claimant with a capped permanent partial disability (“PPD”) dies for reasons unrelated to established injuries, any remaining weeks on the PPD cap are payable to the deceased claimant’s surviving relatives enumerated in WCL §15(4). The employer’s initial motion for leave to appeal to the Court earlier this year was dismissed

We continue to believe that this decision is wrongly decided and fails to apply long-standing precedent requiring causally related lost time / lost wages as a prerequisite to permanent partial disability awards. In light of the pending appeal before the Court of Appeals, we recommend that carriers and employers continue to object to such awards. None of our firm’s pending appeals on this issue have been decided by the Board, which we presume is awaiting a decision from the Court of Appeals before resolving the pending appeals. 

Changes in WAMO Section 32 Procedure

The Board’s Waiver Agreement Management Office (“WAMO”) has advised of changes regarding WAMO settlements. Future Section 32 agreements involving established WCL Section 15(8)(d) claims will be processed by the Special Funds Group.  Settlements will be paid by the carrier or self-insured employer to claimants, then reimbursed by the Special Funds Group, rather than paid to claimants directly from WAMO.  

The Board has not issued a formal announcement on this as of this writing. Presently, the Board website simply states, “WAMO Section 32 process is being revised.”  We were advised of the change by an attorney in the Board’s Special Funds Group / Waiver Agreement Management Office. We await further guidance from the Board, as the change is likely to affect the WAMO application process and the format of WAMO settlement agreements. 

Reminder - Board Allows Direct Deposit of Indemnity and Death Benefits

As of July 1, 2021, injured workers and those persons entitled to a death benefit will have the right to have indemnity payments directly deposited into at least two bank accounts.  The Board adopted a new direct deposit regulation, 12 NYCRR 300.26, which requires carriers, self-insured employers, third party administrators and Special Funds, including the UEF, to make direct deposit available to all injured workers or persons entitled to a death benefit pursuant to an Election Form to be prescribed by the Board. The Board also requires that a one-time Notice be provided to all such persons. Neither the Election Form nor the specific format of the Notice are published to date, but the requirements of both are delineated in the new regulation. Carriers/SIEs/TPAs may use the current Direct Deposit and Debit Card Authorization Form (DD-1) already available and may include whatever additional elements they find appropriate, as long as the regulation requirements are met.  

While we recommend detailed review of the regulation, of note are the following: 

  • The one-time Notice and Election Form must be provided to the injured worker or person entitled to a death benefit within 14 days of the submission of a FROI.  
  • The new regulation applies to ongoing awards directed prior to 7/1/21 as well as those directed thereafter. If the FROI was due prior to 7/1/21, then the Notice and Election Form will be due with or before the next SROI is due or submitted after 7/1/21. 
  • The Notice must be published on the carrier, SIE or TPA’s website, along with instructions for submission of the Election Form.  
  • The carrier, SIE, TPA or Special Fund may set a minimum amount for direct deposit into a single account, not to exceed $20 per biweekly payment. 
  • The Notice and Election Form are not required for payments to injured workers or persons entitled to death benefits in lieu of workers’ compensation benefits, schedule loss of use awards, Section 32 settlement proceeds, or awards made without direction to continue payments. 

Should you have any questions about this issue, please do not hesitate to contact our partner Susan Parzymieso at 716-852-5200 or sparzymieso@hwcomp.com.

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716-852-5200
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Rochester, NY 14614
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By: Kelly Hamilton (Managing Attorney - Redding Office)

Although there had been a prior notice that there would be no change to the temporary total disability  (TTD) rates for 2022, that notice had been rescinded as the final State Average Weekly Wage (SAWW) information had not been compiled.  This has now been completed and there was a 13.5213% increase, thereby causing an increase in the TTD minimum and maximum rates.

Full Announcement:  https://www.dir.ca.gov/DIRNews/2021/2021-109.html


By Attorneys Alison Stewart and Nick Cooling and Law Clerk Jordan Gehlhaar 

The issue in Masterbrand Cabinets, Inc. v. Simons was whether a tear of the claimant’s right quadriceps tendon was a scheduled injury of the leg or a whole body injury. The employer argued this was scheduled under 85.34 (2)(p) because it only involved the knee and thigh, and the claimant never reported hip pain to his surgeon. The claimant argued the injury was to the body as a whole due to loss of hip flexion, range of motion, and strength.  The Court of Appeals affirmed the lower court’s industrial award, finding that although this was a scheduled injury to the leg, the effects or disability extended beyond that member, resulting in impairment to the body as a whole.

If a timely appeal has not been filed, any party in interest may file a decision of the Commissioner with the district court for entry of judgment. This statutory provision was at issue in Reinsbach v. Great Lakes Cooperative. In 2013, after a review-reopening hearing, the Commissioner ordered the employer to pay over $250,000 for medical expenses and transportation; the order also provided defendants were to provide future care and treatment of the back condition as recommended by claimant’s doctor. The employer paid all past expenses. In 2019, the claimant filed with the district court a request for entry of judgment under Iowa Code 86.42 to enforce the 2013 Commissioner ruling. The proposed judgment stated the employer and insurance carrier shall provide “all future care and treatment modalities for his back condition recommended by [his doctor].” The employer challenged entry of judgment based on the monetary portion being satisfied, and alternatively proposed the following language: “provide all causally related, reasonable, and necessary care for Petitioner’s 04/15/2005 work-related back condition.” Judgment was entered resembling the employer’s proposed language and the employee appealed. The Court of Appeals upheld the judgment, finding that removal of “reasonable and necessary” would modify the Commissioner’s ruling – which is beyond the power of the court.

Substantial evidence must support a work injury for compensability. The claimant in Tew v. Sparboe Farms, Inc. challenged the Commissioner’s finding that there was not substantial evidence to support a cumulative work injury. Evidence revealed that Claimant Tew had occasional flare ups from a preexisting back condition, had reported several non-employment related causes of pain to his supervisor, asked about disability leave stating he did not qualify for workers’ compensation, and did not mention a work-related injury to treating physicians until after he filed his petition. When there are contradicting accounts of an event, the Commissioner’s decision is based upon weight of the evidence and credibility of witnesses. The supervisor was found more credible than the claimant, who failed to meet his burden of proving a work-related injury. Therefore, denial of benefits was affirmed.


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