HOUSE BILL REPORT

HB 1300

BYRepresentatives Vekich, Winsley, Leonard, Baugher, R. King, Gallagher, Sayan, Cole, Walk, Prentice and Heavey

Repealing worker liability for industrial insurance medical aid fund premiums.

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, O'Brien and Prentice.

Minority Report:  Do not pass.  (4)

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

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 17, 1989

BACKGROUND:

The industrial insurance law requires all employers, other than self-insured employers, to deduct one-half of the medical aid fund premium from the wages of their workers.  An employer who makes or attempts to make an unauthorized premium deduction is guilty of a gross misdemeanor.

SUMMARY:

SUBSTITUTE BILL:  The provision is deleted that requires state fund employers to deduct one-half of the medical aid fund premium from a worker's wages.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill reinserts the gross misdemeanor penalty for an employer who takes unauthorized industrial insurance deductions from the workers' wages.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Bob Dilger, Washington State Building and Construction Trades Council; Gerry Marsh, Carpenter's District Council; and Sam Kinville, Washington State Council of County and City Employees.

House Committee - Testified Against:      Doug Connell, Department of Labor and Industries.

House Committee - Testimony For:    Washington is the only state that requires workers to pay a share of their medical aid premium.  The worker, unlike the employer, cannot pass these costs on to the business' customers. The employees have every incentive for safety -- they are the ones that suffer the injuries.

House Committee - Testimony Against:      The requirement for workers to pay part of the medical aid premium is an incentive for safety, especially now that the medical aid fund is experience rated.