OLYMPIA – In a sweeping reform package for the state Department of Labor & Industries (L&I), the House passed new efficiency and oversight measures adding flexibility for employers and injured workers, and stricter accident prevention enforcement. In total, the package potentially saves the workers’ compensation system tens of millions of dollars each year and drive down employer premiums.
The changes come in the wake of an overhaul to the state unemployment insurance forged with broad bi-partisan participation. “That same spirit of bringing together all parties to come to a compromise was applied to this negotiating process, in order to find common ground,” said Rep. Mike Sells (D – Everett), the Chair of the House Labor & Workforce Development Committee and a chief negotiator of the package.
HB 1676 – Abatement of Safety and Health Violations During Appeals
This would prevent worker injuries and death, and consequently bring down costs at L&I, by authorizing them to shut down workplaces that contain a substantial probability of death or serious physical harm to workers during the appeal process.
“When it comes right down to it, there’s nothing more important than protecting the workers in this state,” said Rep. Chris Reykdal (D – Tumwater), the bill’s sponsor. “By giving L&I inspectors more authority to shut down dangerous workplaces, this policy could help prevent disasters and lives lost.
“Prevention should be our number one focus.”
HB 2002 – Stay-At-Work Policy
This allows injured workers to return to work if their employer can accommodate light duties during the worker’s rehabilitation. It also gives employers a wage subsidy of 50 percent of basic, gross wages for a maximum of 66 days within a 24-month period, limited to $10,000 per claim.
Employer can also get reimbursements for tuition, books, fees, materials, clothing, tools, and equipment, subject to maximums.
These changes will give employer an incentive to keep the worker in the workforce rather than going on long-term disability, and it doesn’t affect an employer’s Experience Rating.
HB 1487 – Allowing claims management by retrospective plan employers
This increases the efficiency of claims management, by allowing employers in the Retrospective program to administer and close some injured-worker claims.
The bill’s sponsor, Rep. Larry Springer (D – Kirkland) worked with business and labor stakeholders to craft compromise legislation that meets both sides halfway, providing flexibility to employers and retains protections for injured workers.
“This creates a new system for managing injured worker claims in order to get those workers the care they need more quickly,” Springer said. “When workers get back to work sooner everyone benefits, employers and employees. This is good for Washington’s economy.”
HB 1725 – Administrative Efficiencies
Self-insured employers would be required to issue orders when allowing or reopening a claim, and permits self-insured employers to make wage determinations. It also allows the Department of Labor and Industries to send notices electronically when requested by the worker, employer, or other person affected. Enhancements are also made to their information technology system.
SB 5801 – Medical Provider Networks, Centers for Occupation Health and Education
The Senate companion to House Bill 1869, passed last week by the House, this creates a network of medical providers for injured workers. It’s estimated $160 million could be saved over the next four years, helping keep costs down for businesses providing jobs.
The industrial insurance provider network would be established by the Department of Labor and Industries to ensure providers were using best practices in treating injured workers. Workers, after their initial visit to an emergency room or doctor, would be required to utilize a local network provider.
By 2013, the legislation aims for 50 percent of all injured workers to use a network provider, and by 2015 having all workers being treated in the network.
“Getting injured workers in for quality medical care soon after an accident not only improves their long-term health, it also helps them get back to work sooner,” Sells said. “We’re not only improving the quality of care, as this medical network will really drive down the costs needed to get our workers healthy and back to work.”
1726 – Vocational Services for Workers with Catastrophic Injuries
Legislation in 2007 created the Vocational Rehabilitation Subcommittee and they recommended vocational services be allowed for accidents where workers lose two limbs or all their eyesight. The vocational services would train the worker for a future job, and could also increase their general quality of life moving forward.
1055 – Streamlining Contractor Appeals
When the Department of Labor and Industries file an infraction for a violation, a contract would now have 30 days, instead of the current 20 days, to file an appeal.
Taking the workers’ compensation bills together as a package, Rep. Tami Green, D-Lakewood, sees the changes as a good step for a stronger Washington.
“By keeping our focus on good jobs and healthy workers, we’re making significant reform to our workers’ compensation system,” Green said. “These changes will bolster the program and make it work even better for everyone in Washington.”
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