HOUSE BILL REPORT

HB 2701

BYRepresentatives Leonard, R. King, Prentice, Cole, Jones, Rector and Dellwo

Providing civil penalties for prohibited practices in industrial insurance.

House Committe on Commerce & Labor

Majority Report:  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 Smith, Ranking Republican Member; Forner, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR JANUARY 31, 1990

BACKGROUND:

Various penalties have been established under the industrial insurance act for violation of the act or rules adopted under the act.  Employers are subject to a penalty of up to $250 for failing to report the injury or illness of an employee if the employee has received medical treatment or is disabled from work and if the employer has notice or knowledge of the injury or illness. Physicians who fail to file a report required by the Department of Labor and Industries are subject to a penalty of up to $250.  Any person who violates a rule adopted by the department under the industrial insurance act is subject to a penalty of up to $500.

Self-insured employers may be subject to decertification or corrective action if the employer (1) intentionally or repeatedly induces employees to fail to report injuries, induces the employee to treat the injury as an off-the-job injury, persuades the employee to accept less than the benefits due, or unreasonably makes it necessary for the employee to resort to proceedings to obtain compensation; (2) habitually fails to comply with department rules; or (3) habitually engages in arbitrarily or unreasonably refusing employment to applicants because of nondisabling bodily conditions.

SUMMARY:

It is unlawful for any person to:

(1)  Induce or coerce an employee not to report an industrial accident.

(2)  Induce or coerce an employee to treat an industrial accident as an off-the-job injury.

(3)  Persuade an employee to accept less than the benefits due under the industrial insurance law.

(4)  Unreasonably make it necessary for the employee to resort to proceedings against the employer to obtain industrial insurance compensation.

(5)  Fail to comply with the rules of the Department of Labor and Industries regarding reports or other requirements under industrial insurance.

(6)  Engage in a practice of arbitrarily or unreasonably refusing employment to applicants for employment or discharging employees because of non-disabling bodily conditions.

(7)  Unduly influence the employee's attending physician with regard to releasing the employee for return to work.

(8)  Communicate with the attending physician, the department, or the employee's vocational rehabilitation counselor without first notifying the employee or employee's representative.

A person who violates any of these provisions is subject to a civil penalty of $1,000 for each offense.

An application for industrial insurance compensation is exempt from the one year filing requirement if the failure to file within the time limit resulted from an act prohibited by these provisions.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Jeff Johnson, Washington State Labor Council.

House Committee - Testified Against:      Wayne Williams, Washington Self-Insurers Association.

House Committee - Testimony For:    The bill is needed to allow the Department of Labor and Industries to raise the penalties for certain activities.  For some particularly harmful practices, the current penalties are too low.

House Committee - Testimony Against:      Many of the provisions of the bill are already grounds for decertifying a self-insured employer.  Some of the provisions are unworkable and would prevent effective adjudication of a claim. Others are so vague that it is difficult to know who the provisions apply to.