HOUSE BILL REPORT

HB 1269

BYRepresentatives Vekich, Cole and Leonard

Revising provisions for workers' compensation.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (7)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard, Prentice and Wolfe.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Patrick, Ranking Republican Member; Smith and Walker.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 8, 1988

BACKGROUND:

Injured workers or workers with occupational diseases may receive workers' compensation benefits until the medical condition has stabilized and the worker is released to return to work or the claim is closed.  A worker who is released to return to work may no longer be employed or only may be able to obtain employment at wages less than his or her wages at the time of injury.  Under the vocational rehabilitation program, a worker may be considered employable if the worker is able to work at a job that pays at least the higher of the state or federal minimum wage.

SUMMARY:

SUBSTITUTE BILL:  Payment of temporary total disability (time-loss) benefits to an injured worker must continue until the worker is able to obtain employment that pays a monthly wage, including benefits, at least equal to the monthly wage the worker was earning at the time of injury or until the worker has completed or otherwise properly terminated a vocational rehabilitation program.

If an employer requests that a worker return to work at a light duty job, the worker's time-loss benefits may not be terminated until the physician has determined whether the worker is physically able to perform the job and the worker begins the job.

The definition of "gainful employment" for the purposes of vocational rehabilitation is amended to provide that employment is gainful only if the monthly wage, including benefits, provided by the employer is at least equal to the wage that the worker was earning at the time of injury.  The requirement is deleted that vocational rehabilitation determinations are made in the sole discretion of the supervisor of industrial insurance.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill adds language to clarify that temporary disability payments will continue until (1) the worker has completed or otherwise properly terminated a vocational rehabilitation program and (2) the worker has begun the light duty job made available by the employer.

If an employer requests the physician to evaluate a light duty job, the description of the available work must be furnished to the Department of Labor and Industries as well as the worker.

Additional sections of the bill are amended to eliminate "sole discretion" authority for the supervisor of industrial insurance in making vocational rehabilitation program determinations.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Wayne Lieb, Washington State Trial Lawyers Association; Dennis Martin, Washington State Trial Lawyers Association; Jeff Johnson, Washington State Labor Council; and Bob Dilger, Washington State Building and Construction Trades Council.

House Committee - Testified Against:      Lee Eberle, Washington Self-Insurers Association; Clif Finch, Association of Washington Business; and Bob McCallister, Department of Labor and Industries.

House Committee - Testimony For:    Injured workers are suffering two injuries because they may be forced to return to minimum wage jobs even though the worker may have had substantial earnings prior to the injury.  Other states have provided a return-to-work standard that is based on the wage at injury and that better compensates the worker for the loss of earning power resulting from the injury.

House Committee - Testimony Against:      Requiring workers to remain on time-loss until the pre-injury wage can be replaced will be extremely costly to the industrial insurance system.  It will also prohibit returning workers to entry level positions that will ultimately lead to a better wage than the pre-injury wage.  The bill does not recognize jobs that may have a lower wage but liberal benefit packages.