8-16-11; Illinois Workers’ Compensation Commission may be shuffling and dealing a new deck next year

They haven’t posted this on their website just yet but lots of reliable sources are confirming these changes.

Effective January 1, 2012:

Illinois has something like 20 Downstate or “outstate” venues—this basically means hearing sites other than in Cook County.

Starting in January, we are advised this will dramatically change.

Downstate venues will be in 5 regions with 3 Arbitrators each, and the monthly call cycles for the downstate hearing sites are going back to three month cycles.

The three Arbitrators at each region will rotate from venue to venue to venue each month, however when a 19(b) is filed, the case will follow the Arbitrator.

Some of the regions:

·         Rockford, Woodstock and Waukegan

·         Peoria, Quincy, and a new location in Kewanee, Illinois.  

·         Wheaton, Geneva and Joliet.   

·         Unknown, but likely including Collinsville and Springfield (please note this is complete speculation based on call size and our state map)

·         Unknown, but likely including Mattoon and Urbana (please note this is also complete speculation based on call size and state map)

We are told one of the main hearing sites is in Kewanee, and it looks like current hearing sites in DeKalb, Rock Falls and Rock Island are being eliminated.

It is unknown whether the Chicago dockets will revert to three month call cycles.

We assume lots of sitting Arbitrators may be let go because Illinois has about thirty of them and if you do the math, they aren’t going to need nearly that many to staff these five regions.

Someday soon, we hope they get rid of the extra three Commissioners and their staffs that were added five years ago. As we have said on numerous occasions, if each of the 27 Commission hearing officers including attorney staff assistants decided one contested claim a week, they would have literally nothing to do in about three months. The addition of these three Commissioners in 2006 hasn’t led to rapid movement of claims.

We feel it is a shame to see the Arbitrators bearing the whole brunt of cost-cutting.

8-16-11; Whatever happens, in Illinois, workers get rich and business takes the hit--a recent multimillion dollar decision from southern Illinois reconfirms this state can be duplicitous...

A couple weeks ago, The Southern newspaper based in Carbondale, IL had an article with a headline about a Marion, IL man supposedly winning a $4.2 million dollar workers compensation “verdict.” The article (which can be found here: http://thesouthern.com/news/local/crime-and-courts/article_afad61d0-b8d5-11e0-87e6-001cc4c03286.html#ixzz1TPrLUXOK) was actually about a retaliatory discharge claim being handled in the state courts, but the basis for the claim did allegedly arise from a work-related injury.

We point out there is a double-standard in the Illinois courts when one compares claims for retaliatory discharge by employees with claims for workers’ comp fraud brought by Illinois employers. We consider both to create rights and duties ancillary to our workers’ compensation system.

We first point out retaliatory discharge is specifically prohibited by the Illinois Workers’ Compensation Act. From our view, any action for retaliatory discharge claimed by an employee against an employer should be heard by an Arbitrator or the Commission and not by the Courts. The Act specifically provides in Section 4 (h) as follows:

It shall be unlawful for any employer, insurance company or service or adjustment company to interfere with, restrain or coerce an employee in any manner whatsoever in the exercise of the rights or remedies granted to him or her by this Act or to discriminate, attempt to discriminate, or threaten to discriminate against an employee in any way because of his or her exercise of the rights or remedies granted to him or her by this Act. It shall be unlawful for any employer, individually or through any insurance company or service or adjustment company, to discharge or to threaten to discharge, or to refuse to rehire or recall to active service in a suitable capacity an employee because of the exercise of his or her rights or remedies granted to him or her by this Act. (emphasis added)

What this means is the Workers’ Compensation Act specifically estops retaliatory discharge. At present, despite the statute, retaliatory discharge is not a claim ever handled by the Arbitrators or Commissioners at the IWCC. Such claims are routinely handled in the Circuit Courts regardless of the statutory language above. Please note handling such claims in the Circuit Courts allows claimants to seek damages for “pain and suffering” which an Arbitrator would never consider. Such claims also allow for punitive damages, almost as a matter of right because retaliatory discharge is always brought with allegations of intentional acts by the employer. You can’t make a claim for punitive damages at the Illinois WC Commission.

In contrast, when an employer wants to sue employees for the clearest possible evidence of WC fraud, the Illinois Workers’ Compensation Act has provisions defining such fraud with language at least as clear as the statutory provisions above. Our Workers’ Compensation Act specifically estops workers’ compensation fraud. However, the Circuit and Appellate Courts, particularly in the First District, appear to be bowing to the interests of ITLA in stalling or otherwise remanding such issues to initial adjudication solely by the IWCC, despite the fact numerous Commission decisions say they won’t handle WC fraud claims. Please also note with the grindingly slow pace of some workers’ compensation litigation that can be controlled to a great extent by the claimant bar, strong evidence of workers’ comp fraud could languish as continuance after continuance is granted.

In contrast, Illinois courts have routinely held an action for retaliatory discharge can simultaneously be sought while the workers’ compensation claim is pending. In workers’ comp, what is sauce for the goose, isn’t always sauce for the gander.

How does the injured worker settle his WC claim, thereby giving up all rights under the WC Act and still pursue the employer for retaliatory discharge which is clearly proscribed by the same legislation?

What is even weirder about this ruling is our research indicates the WC claim was quietly settled years prior to the verdict reported above. If you go the IWCC website and look up claim 09 WC 23977, you will find the wildly aggrieved and now potential millionaire, Larry Holland accepted $17,460.75 or 7.5% BAW for his injuries and the Arbitrator approved it about two years before this verdict. From our review of the IWCC website, it does not appear there was anyone who represented the employer in that claim, leading us to believe the insurance carrier directly settled it. To veteran observers, this would appear to cause you to wonder where the multi-million dollar damages came from—the settlement contracts don’t actually point to the payment of any TTD or lost time. Arbitrators won’t approve settlements if claimants remain off all work due to their injury.

Right now, one of our defense competitors from southern Illinois is telling everyone on their website you can’t go after a claimant for WC fraud if you first settle their workers’ compensation claim, even on a disputed basis. Well, it appears there is no concern on the other side—clearly Larry Holland gave up “all rights under the Act” in settling his pending workers’ compensation claim. One has to wonder if the defense attorney who got whacked with the multi-million dollar verdict knew what rights were being given up when settling workers’ compensation claims at the IWCC.

For all the members of the claimant bar who are certain to write about the Illinois Supreme Court’s ruling in Kelsay v. Motorola—please note Plaintiff Kelsay in that claim didn’t first settle the workers’ comp case and waive all rights under the Act.

What does this mean for employers? A few things – most important, build your case carefully when you are thinking about terminating a person who has a pending workers’ compensation claim. You need a clear reason for the termination, something that is not “pretext” or a bogus reason. This will need to be something you would terminate any employee for, such as theft, failure to appear for work without a doctor excusing the no-show, etc. If you are going to use grounds that are less severe, make sure you have terminated other employees who did not have a pending workers compensation claim for the same purpose so you can be sure to point out those claims as well in any subsequent case.

If the employee is claiming termination was due to his injuries, please also ask the Arbitrator to hear the dispute and don’t settle it quickly and quietly. Fight such claims early and often and at every stage of the process. If the Arbitrator will hear it, it is much, much cheaper to litigate at the IWCC and you avoid the issues of “pain and suffering” and punitive damages as we outline above.

Please note the outcome above also reinforces the idea of insuring you obtain a release and resignation as a part of claim closure. We understand most insurance carriers are reluctant about handling it. We feel that is short-sighted and someone should ask the carriers how they insure you for the statutory language above but simultaneously wash themselves of such liability.

The release/resignation tool is useful in many situations, not the least of which being those where there has already been a termination, although they can cost a lot more in such cases. If you incentivize a claimant to sign off on a release and resignation, you are insulating yourself from any potential retaliatory discharge claims in the future. Often times this will purchase peace for both parties when any potential civil claim is in dispute or tentative. Other times, you can nip this type of claim in the bud by obtaining a release/resignation early if you press your evidence and say you intend to terminate based on said evidence. Always remember to carve out the WC claim on any release/resignation paperwork, as the IWCC needs to have approved settlement contracts on the WC claim in order for you to protect yourself fully from any further seeking of benefits. Please feel free to respond to us with any questions on this idea or for a draft version of a release and resignation. KC&A is happy to work with Illinois employers to tailor your release/resignations to specific claims and needs.

8-16-11; Count your blessings at Thanksgiving this year—it won’t take as long as previous years because the folks in Washington have cut our blessings in half and continue to “carve” away...

In the most recent of what is becoming a growing concern for employers across the U.S., the lack of effort to determine consideration for reasonable accommodations in H.R. attendance policies is becoming more and more expensive. In July 2011, the EEOC announced it reached a $20 million agreement -- the largest settlement in Americans with Disabilities Act history -- with Verizon to settle claims that company subsidiaries violated the ADA by failing to make exceptions to its "no-fault" attendance plan. From our view, Verizon fell into the HR trap of thinking strict and arguably “blind” adherence to its attendance policy would shield them from claims of discrimination. As we demonstrate below, the EEOC clearly goes on the attack when strict attendance/termination policies don’t adjust for workers claiming what they feel are life-changing disabilities.

The EEOC viewed the failure to make HR exceptions to be Verizon's decision to not accommodate employees whose "chargeable absences" were supposedly due to disabilities. As we have previously reported in this KC&A Update, prior issues investigated by the EEOC resulted in a $6 million agreement the EEOC reached with Sears in 2009 and a similar issue resolved with Supervalu in January 2011 for $3.2 million. In the Sears case, the EEOC challenged Sears' policy of automatically terminating employees who were on workers' comp due to a disability resulting from a work-related injury. In the Supervalu case, the ADA alleged violations in claiming Supervalu (Jewel-Osco) had a policy and practice of terminating employees with disabilities when medical leaves of absence ended rather than bringing them back to work with reasonable accommodations. Allegedly Supervalu had a policy where disabled employees must be completely healed to return to work and approximately 1,000 employees were terminated under this policy since 2003.

We assure our readers such a strict policy is certain to result in a suit being filed by the federal government and if you fired numerous employees due to such a policy, you may be facing seven-figure exposure. The Equal Employment Opportunity Commission has taken a position such a policy is unlawful under the ADA. The type of blanket attendance policies at issue in the Verizon, Supervalu and Sears cases run afoul of the ADA's individualized assessment requirements for determining when leave might be a reasonable accommodation. We urge all US employers to take a strong look at their blanket attendance and termination policies to ensure they do not run afoul of the EEOC with regard to issues related to people who arguably have disabilities.

It should be noted the ADA is very clear that U.S. employers have a requirement to engage in the interactive process and conduct an individualized assessment to determine whether it can provide a reasonable accommodation to employees claiming disabilities. This cannot be done with a wave of the hand or a simple eyeball test to see if the person “looks disabled.” We strongly encourage employers to document, document, document in an effort to evidence your review. It also should be noted the ADA doesn’t force you to “find work” for the disabled, it simply forces you to attempt to make a reasonable accommodation. If every job in your facility involves a lifting requirement and you make a reasonable effort to determine if certain shifts or certain duties can be avoided, you have more than likely met the burden even if there is an ultimate determination that no job can be accommodated. There are other factors which the EEOC may take into consideration and if you have a large and diverse workforce at a facility, they will be more strict to compel accommodation. Conversely, if you have a relatively small workforce, the ability to accommodate is obviously inverse. The main goal is to perform an individual review for the specific situation and make a determination based upon that individual employers circumstance and disability.

The irony of being punished for a blanket attendance/termination policy has not escaped some of our clients—many of whom have noted their “blanket” policies were generally a response to efforts to determine nondiscriminatory standards in that everyone gets treated the same regardless of their circumstances. It is our belief the EEOC is not attacking these policies directly, but they expect a more detailed review of individual claims to ensure employees with disabilities are given consideration of that particular employee's situation.

We continue to see clients who struggle with issues when workers are off work for extended periods and note the EEOC still hasn’t answered the fundamental question of whether an employer can ever terminate a worker who is on TTD. Basically, all they do is attack and attack. We ask does the work injury causing “disability” equal infinite or at least indefinite job security to the extent the injured worker could always continuously or later claim the need for reasonable accommodation to allow them to get back into your workforce?

We also remind you of the pertinent questions that arise include what an HR department should do when and if:

1.           The injured worker is off for the entire autotermination period and doesn’t claim a disability and/or request accommodation until after they have been terminated;

2.           The injured worker who is fully recovered to MMI during the autotermination period and then aggravates the injury at a later time, again losing substantial time from work;

3.           A union employer is more than willing to accommodate an employee who is ready to return to work before or after the autotermination period has run but the applicable union or interpretation of their union rules won’t allow it;

4.           An employee is off for multiple reasons, some of which are related to injury and some of which are wholly personal and unrelated to the work injury.

 

We still believe one “solution” to this problem is to maintain the status quo, sort of. First, autoterminate everyone consistent with your current policy that isn’t suffering from a claimed work injury. Second, for those with pending workers’ compensation claims, if they ask for accommodation to return to work prior to the running of the autotermination period, actively address the request and keep careful records of both the request and your decision(s) on reasonable accommodation. Third, for injured workers with pending workers’ compensation claims who don’t request accommodation prior to the autotermination period, when your autotermination period is over, don’t terminate; put them on “inactive” or leave of absence status, pending further action. If such injured workers later request reasonable accommodation due to their work injuries and allegations of disability, consider the request, confer with your defense counsel and take whatever action necessary to determine if there is a reasonable accommodation available and avoid running afoul of the ADA. If they don’t seek reasonable accommodation and cannot return to work, at some distant point, take them off the inactive or leave of absence status.  Our other strong suggestion is to offer value for a release agreement to ensure nothing arises in the future which creates difficulty in defending.

As always—DOCUMENT.

·         At the time the auto-termination is approaching or about to trigger, we feel the employer should ask the employee in writing if he/she has been or will soon be released to work under any temporary or permanent restrictions. Document non-response or response.

·         If there is a total medical restriction from all work in your file, we recommend you place a memo in the personnel file that you carefully considered reasonable accommodation potential under ADA but there is a continuing total prohibition from all work and therefore, you are proceeding with termination, as the employee cannot and will not be able to perform the essential job functions of their position. This remains “legal” under Illinois law based upon the rulings in Hartlein v. Illinois Power and Hayden v. Industrial Commission.

·         If the employer finds out the treating doctor has any type of light duty restrictions prior to or as you near an auto-termination deadline, we feel the employer should evaluate whether the stated restrictions can be “reasonably accommodated” and ideally, the employer should even ask the employee if he/she has any suggestions for either (a) modifying the prior position to allow accommodation or (b) whether there are any open positions that would fit the restrictions, allowing the employee to be returned to those positions.

·         If the employer has no open positions and cannot safely and reasonably accommodate the restrictions with a job modification, we recommend the employer document the effort made to consider such accommodation and place such memorandum in the employee’s personnel file. You may then proceed with termination with some modicum of defense should the issue arise later.

We already have an exit document created for your consideration to use when an injured or disabled worker is leaving your employment. The concept has not been tested in litigation but we bet someone will take a shot at it soon. The idea is to affirmatively ask anyone you are firing to tell you in writing if they could return to work with reasonable accommodation and to outline the requested accommodation. If you want our sample document, send a reply.

Remember, the employer’s obligation is one of “reasonableness” and employers need not overhaul an entire facility or production line to accommodate persons with disabilities. However, simple accommodations such as step stools, chairs, inexpensive modifications to existing equipment should and must be considered before termination.