H-1638.1 _______________________________________________
HOUSE BILL 2041
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State of Washington 55th Legislature 1997 Regular Session
By Representatives Honeyford, Thompson, Sherstad, Mielke and Koster
Read first time 02/18/97. Referred to Committee on Commerce & Labor.
AN ACT Relating to employers failure to pay industrial insurance premiums; adding a new section to chapter 51.32 RCW; adding a new section to chapter 51.04 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that there is a continuing problem of employers illegally failing to pay industrial insurance premiums. When an employee of an illegally uninsured employer files a claim for benefits, the department of labor and industries is forced to pass on the cost of the benefits provided to other legally insured employers in the same risk classification. It is the intent of the legislature to place the financial burden of paying for the industrial insurance benefits provided to the injured employee on the illegally uninsured employer.
NEW SECTION. Sec. 2. A new section is added to chapter 51.32 RCW to read as follows:
(1) If an employee employed by an illegally uninsured employer makes a claim for industrial insurance benefits, the department may pay only for the medical benefits of the injured employee. The department may not pay for the injured employee's lost employment time, vocational services, or other nonmedical industrial insurance benefits.
(2) The department must charge all expenses related to a claim by an employee not covered by industrial insurance to the illegally uninsured employer. If the illegally uninsured employer is unwilling to pay the charges for the benefits provided, the department may file a lien on the illegally uninsured employer's assets for the estimated or actual cost, whichever is greater, of the benefits provided to the employee.
(3) The employee must provide payroll records, canceled checks, pay stubs, or other documentation or proof to substantiate a presumption by the employee that industrial insurance premiums were paid on his or her behalf.
NEW SECTION. Sec. 3. A new section is added to chapter 51.04 RCW to read as follows:
The director shall report biennially to the legislature concerning the amount of money paid out by the department, and not recovered under section 2(2) of this act, for industrial insurance benefits provided to employees of illegally uninsured employers.
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