SENATE BILL REPORT

EHB 1396

BYRepresentatives Wang, Patrick and Cole; by request of Department of Labor and Industries

Revising industrial insurance disability benefits.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 24, 1988; February 26, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Anderson, Vice Chairman; Conner, Deccio, McMullen, Smitherman, Warnke, West.

Senate Staff:Dave Cheal (786-7576)

                  February 26, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 26, 1988

BACKGROUND:

The amount of basic workers' compensation disability and death benefits paid monthly to workers or beneficiaries is based on a schedule that varies depending on the marital status of the worker and the number of children.  The amount is limited by statute to 75 percent of the state average monthly wage.  Minimum amounts are also established in the dependent schedule.

Compensation for an occupational disease claim is based on the payment schedule that was in effect at the time the worker contracted the disease or was last exposed to injurious substances.  For many occupational diseases, the disease does not manifest itself for many years after the date that the worker was last exposed to the injurious substance. 

If a worker is awarded a permanent partial disability award based on a back injury that does not have marked objective clinical findings, the award is automatically reduced by 25 percent.

SUMMARY:

The schedule is deleted that bases workers' compensation disability and death benefits and minimum benefits on the number of dependents of the injured worker.  The basic disability or death benefit monthly payment to an injured worker or surviving spouse is established at 66-2/3 percent of the injured worker's wages at the time of injury. The maximum monthly benefit is increased from 75 percent of the state average monthly wage (SAMW) to 100 percent of SAMW beginning July 1, 1988, and to 150 percent of SAMW beginning July 1, 1990.  The minimum benefit is eliminated. 

The rate of compensation for occupational disease claims filed on or after July 1, 1988, is established as of the date that the disease requires medical treatment or becomes disabling, whichever occurs first, without regard to the date on which the disease was contracted or the date the claim was filed.

The reduction in the permanent partial disability award for back injuries that do not have marked objective clinical findings is deleted.

Technical changes are made to remove references to the compensation payable for children, in conformity with the deletion of the dependent schedule. It is clarified that death benefit payments made on behalf of a child of a deceased worker are to be made to the person having legal custody of the child.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The maximum benefit level for disability and death benefits is reduced from 150 percent of the state average monthly wage to 100 percent of the state average wage.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 5, 1988

Senate Committee - Testified: Melanie Stewart, Self-Insurers (pro with amendments); Joe Dear, Director, Dept. of Labor and Industries (pro); Paul Kerbat (pro); Cliff Finch, AWB (con); Robert Taylor, Alcoa (con)