| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Commerce & Labor Committee | |
SSB 5676
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Revising provision for receipt of temporary total disability.
Sponsors: Senate Committee on Labor, Commerce, Research & Development (originally sponsored by Senators Keiser, Kohl-Welles, Murray, Prentice, Hatfield and Kline).
Brief Summary of Substitute Bill |
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Hearing Date: 3/22/07
Staff: Sarah Beznoska (786-7109).
Background:
Loss of Earning Power
The Industrial Insurance Act allows an employer to provide a light or modified job to an injured
worker while the worker is recovering from his or her injury. The light duty job must be
approved by the worker's physician. If the worker returns to a job paying less than 95 percent of
the worker's earning power, the worker is entitled to partial benefits paid in proportion to the
worker's loss of earning power.
The loss of earning power calculation is different in situations when a claim has been closed and
then reopened. If a claim is reopened, the worker is not entitled to loss of earning power benefits
in the reopening unless the worker shows that he or she has suffered a decrease in earning power
proximately resulting from the injury's aggravation. If the worker is entitled to loss of earning
power in a reopening, loss of earning power benefits are determined by comparing the worker's
current earning power to the worker's earning power at the time the claim was last closed.
Kept-on-Salary
If a worker suffers a temporary total disability, an employer may choose to continue paying the
worker wages that he or she was earning at the time of injury. In these situations, the worker is
not entitled to temporary total disability benefits (time-loss benefits) during the period in which
the employer continues to pay wages.
Summary of Bill:
The prior closure of the claim or the receipt of permanent partial disability benefits does not
affect the rate at which loss of earning power benefits are calculated upon re-opening of a claim.
If an employer continues to pay a worker, during a period of temporary total disability, wages
that the worker was earning at the time of injury, holiday pay, vacation pay, sick leave, or other
similar benefits are not considered payments by the employer.
Rules Authority: The bill does not address the rule-making powers of an agency.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.