2006 Legislative Update

WORKERS' COMPENSATION - OMNIBUS BILL 2006

The Rhode Island General Assembly visited the Workers' Compensation Act again this year and concluded the 2006 session with the passage of another omnibus bill. This year's omnibus bill became law without the Governor's signature on July 14, 2006. There were very few changes.

One change related to the maximum benefit entitlement. The maximum benefit works off of the state average weekly wage. This year's bill establishes the maximum rate as one hundred fifteen (115%) percent of the state average weekly wage. It was formerly one hundred ten percent (110%). This change only impacts those workers with a much higher average weekly wage, typically more than $1500.00. This is only a small percentage of the work force.

Another change had to do with health benefits and workers' compensation, but only with regard to state employees who were injured as a result of a violent assault and are totally incapacitated. The final change relates to the definition of material hindrance and the method by which someone were to be entitled to more than 312 weeks of benefits for partial incapacity. The General Assembly has again extended the applicability of the 1990 definition and delayed the implementation of the 1992 version.

The Omnibus Bill was derived from considerations and deliberations at the Workers' Compensation Advisory Council. There were other developments at the Council that were not part of the 2006 Omnibus Bill, but certainly may be considered in the future. These developments include further study of the 2005 legislative changes as it relates to the creation of an uninsured employers fund. A subcommittee of the Council is presently studying the need for such a fund. Its purpose would be to pay at least some benefits to the injured employees of uninsured employers. I will keep you posted as this inquiry continues.