2001 Legislative Update

The Rhode Island General Assembly has enacted changes in the Workers Compensation Act at the recommendation of the Workers Compensation Advisory Council. The changes affect injured workers entitlement to benefits as well as the employer's obligation to provide a safe work environment. Unless otherwise indicated the effective date of the legislation is July 15, 2001. The following is a thumbnail sketch of the changes. More information is available at our website located at www.beaconmutual.com.

The method of calculating the payment of benefits to an injured worker who is working at suitable alternative employment has been clarified. The 1992 definition of the "gate" or the employee's burden to prove entitlement to more than 312 weeks of benefits for partial incapacity has been delayed pending judicial construction of the 1990 definition. The penalties against employers, which refuse to take injured workers back to work under the right to reinstatement statute, were clarified as well. These changes take effect as of July 15, 2001.

Occupational hearing loss has been clarified. The benefits for employees who suffer a hearing loss have been increased while the employers ability to apportion against prior employers and the employee for preexisting or non-work related losses has been solidified. Additionally, procedural changes were made to measure noise and the level of hearing loss in conjunction with a recently adopted Medical Advisory Board protocol to clarify causation and appropriate treatment. Except for acute hearing loss claims, these changes go into effect as of September 1, 2003.

The universal coverage provisions of 1998 were further refined to the extent that the corporate officer exclusion has been eliminated. As of January 1, 2002, all corporate officers will be considered employees subject to some exceptions. Additionally, penalties for failure to comply with directives of the statute regarding posting a summary of the Workers Compensation Act in the workplace and filing first reports of injury with the state have been increased. These penalty provisions are effective immediately.

Finally, there were some procedural changes. Physicians will now be obligated to share Medical Advisory Board affidavits with employees and their attorneys. Insurance carriers and self-insured employers will now be obligated to comply with all aspects of a court order or decree within fourteen (14) days or risk a petition to enforce at the Workers Compensation Court. These changes go into effect immediately.