2007 Legislative Update

The only legislation of interest as it relates to workers’ compensation was the creation of an uninsured employer’s fund. (S1103 aa). There was no omnibus bill. The following is a thumbnail sketch of its important elements:

1. Preamble and legislative filings set forth a need to compensate employees of uninsured employers and punish uninsured employers through an Uninsured Employers Fund.
2. Established in the Department of Labor and Training.
3. Capitalized from assessments against uninsured employers and from general revenues appropriated by the legislature as well as filing fees from the Court.
4. Beginning state fiscal year ending June 30, 2009 the legislature may appropriate up to $2 million annually for deposit into the Fund.
5. No money spent above and beyond what is in the Fund.
6. $5 million cap.
7. Workers’ Compensation Court has jurisdiction.
8. No specific compensation.
9. Counsel fees on settlements are limited
10. Credit to fund if uninsured employer makes payments.
11. If the Fund cannot meet all of its obligations, the Director shall petition the Court for an order outlining a proportionate reduction in payments.
12. Uninsured employer is responsible for payments made by the Fund and there shall be a non-dischargeable lien to the extent of payments made.
13. Applies to injuries that occur on or after January 1, 2009.