HOUSE BILL REPORT

HB 2695

BYRepresentatives Vekich, R. King, Leonard, Cole, Prentice, Jones, Rector and Basich

Revising provisions for industrial insurance vocational rehabilitation services.

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 PASSED HOUSE FEBRUARY 9, 1990

BACKGROUND:

Injured workers or workers with occupational diseases receive workers' compensation benefits until the medical condition has stabilized and the worker is released to return to work or the claim is closed.  A worker who is released to return to work may no longer be employed or only may be able to obtain employment at wages less than his or her wages at the time of injury.  Vocational rehabilitation services may be provided to an injured worker if, in the sole discretion of the Department of Labor and Industries, the rehabilitation is both necessary and likely to make the worker employable at gainful employment.  Under the vocational rehabilitation program, a worker may be considered employable at gainful employment if the worker is able to work at a job that pays at least the higher of the state or federal minimum wage.  If an injured worker is employable at minimum wage or higher, the worker might not receive vocational rehabilitation services.

A vocational rehabilitation program may not exceed a cost of $3,000 or extend beyond a one year period, unless a second year is authorized by the department.

SUMMARY:

The requirement is deleted that vocational rehabilitation benefits under the industrial insurance law be provided only at the sole discretion of the Department of Labor and Industries.

The maximum vocational rehabilitation benefit amount of $3,000 in any year is deleted.  The one year maximum length of a vocational rehabilitation plan may be extended for up to four years for education and training at a vocational institution, community college, or higher education institution. "Gainful employment" for the purposes of vocational rehabilitation is defined as employment or self-employment in which the worker earns monthly wages, including employer-provided benefits, equal to or greater than 90 percent of the workers pre- injury wages.

For a worker to be considered "employable," the worker must be able to compete successfully in the labor market.  A worker who is found employable must be provided job placement services if the worker has not returned to work with the employer of injury or otherwise returned to gainful employment.

Fiscal Note:      Requested January 24, 1990.

House Committee ‑ Testified For:    Jeff Johnson, Washington State Labor Council; Steve Linderman, Injured Workers United; Wayne Lieb, Washington State Trial Lawyers; and Jack Mayes.

(Neutral)  Chuck Holmquist and Dave Erickson, Department of Labor and Industries.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The current industrial insurance vocational rehabilitation program does not meet the needs of injured workers when gainful employment means a minimum wage job.  Workers should be able to return to a job that pays at least 90 percent of their preinjury wages.  The Department of Labor and Industries rarely authorizes a two year vocational rehabilitation plan.  Workers should not be denied the right to appeal the Department of Labor and Industries' decisions about vocational rehabilitation.  These changes really impact only a small percentage of injured workers.

(Neutral)  The Department of Labor and Industries shares the concerns about the responsiveness of the vocational rehabilitation program to the needs of injured workers and has been making changes to address some of the issues.  The policy changes proposed in the bill will increase the overall cost of the program.

House Committee - Testimony Against:      None.