SENATE BILL REPORT

SB 5751

BYSenators Matson, Anderson, Owen and Smitherman

Regarding industrial insurance disputes.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 15, 1989

Senate Staff:Jonathan Seib (786-7427)

AS OF FEBRUARY 13, 1989

BACKGROUND:

Disputes between employers under the Industrial Insurance Act regarding who is responsible for the payment of benefits to a particular claimant are resolved by the Department of Labor and Industries following an investigation.  Pending resolution of the dispute, claimants are paid from the state fund.  Following resolution, if appropriate, the department must get reimbursed by the responsible party.

SUMMARY:

Disputes between two or more employers insured with the Department of Labor and Industries and one or more self-insured employers regarding who is responsible for the payment of industrial insurance benefits may be brought directly to the Board of Industrial Insurance Appeals for resolution.

When requested, the board must join the Department of Labor and Industries, any former employers of the claimant, and the claimant as a necessary or proper party.  A joined claimant is required to participate in the proceedings only if the claimant's entitlement to benefits is at issue.

Prior to final determination of the party responsible for payment of benefits, and if there is no dispute as to whether benefits are due, the board shall direct one of the parties to pay the claimant benefits.  Following the board's final determination of the responsible party, monetary adjustments and reimbursements are to be made between the parties.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 10, 1989