6-1-15; IL WC Reform May Not Be Happening But The Sky Isn’t Falling--Yet; Joint Employer Immunity Upheld by Matt Gorski; Important Petrillo Decision and more

Synopsis: As Of Now, The IL WC Legislative Reforms May Not Be Happening But For the IL WC Industry, The Sky Isn’t Falling Just Yet.

 

Editor’s comment: There is lots going on in Springfield and we have seen the IL House shoot down WC reforms and the IL Senate balk, then modify them and then shoot them down in committee. Both sides of the legislature are fighting with new Governor Rauner and he is fighting back in the media and with attack ads. As you read this, the IL General Assembly was supposed to have adjourned by now but they might be moving into extended session. The General Assembly plan appears to be to finish their business without consensus on a 2016 budget approved by Democrats that is more than $3 billion out of whack. Everyone assumes our leaders are going to borrow billions or raise taxes. There is no indication they might do what we want--enact ABBC—Across-the-Board-Budget-Cuts. Try to imagine Illinois legislators and administrators reaching the simple understanding we don’t have the money for 10% of what they are spending/wasting and having them

 

Ø  Consolidate 88 IL state agencies into 44?

Ø  Cut comically bloated and unquestionably redundant state agency budgets and staff?

Ø  Get rid of satellite offices that do virtually nothing of value to taxpayers?

Ø  Fully automate the tollways and stop spending $100M a year to have humans collect IL highway tolls?

Ø  Start using staffing employees for lots of administrative jobs so taxpayers don’t have to “double-pay” state workers with a salary while they are working for the state and a fake pension when they leave state employ so future taxpayers have to keep paying them more than half their retirement income for life?

Ø  Bring injured state workers back to light work and stop paying TTD for years/decades (or even their lifetimes) to workers that can and should be working?

 

Gov. Rauner says he won't sign any budget plan until Democrats pass some of his priorities to include WC reform. We will continue to watch and see where it ends. We hope our Governor and the legislature continue to work on real government pension reform which remains the mega-issue for our state.

 

Please Note the Proposed WC Reforms Aren’t Present in Indiana WC

 

We don’t feel the sky is falling if WC reforms aren’t enacted. IL WC legislative disappointments shouldn’t be too depressing for IL business. In our view, the four legislative amendments weren’t carefully considered or brought to the mainstream for everyone’s thoughts and input. The article we published from Dr. David Fletcher last week and this new article he just published Rauner's workers' comp plan is bad medicine for workers emphasize how “clunky” and uncertain these rapidly-created-and-presented WC reforms are.

 

Everyone keeps looking to the east at Indiana and their WC system appears to be nirvana for some because their system is sometimes so painfully low and limited in WC benefit levels. If IL WC is supposed to be “Like-Indiana” we caution Indiana worker’s comp has none of the facets of the proposed and currently failed IL WC legislative reforms. For example, they don’t have a “causation” or accident standard in their IN WC Act—they use common sense. The Indiana WC Board and their law doesn’t define “traveling employee” in their IN Act—Indiana hearing members (who are the equivalent of our Arbitrators) use prudence, rationality and sound judgment when they interpret their law in claims administration, hearings and appeals. How about letting our newly appointed IWCC do the same thing?

 

The Defense Team at KCB&A Wants Our IL WC Commission to Get the Chance to Demonstrate Common Sense in WC Claims

 

We have said this before and we will keep saying it. The current IL WC is in the process of “reforming itself” with better hearing officers and commissioners who are going to use common sense in reaching decisions. We assure our readers our team is closely watching every ruling from the IWCC and through those published rulings, the Arbitrators who are having their decisions appealed. We pray someone talk to the IL Appellate Court, WC Division and try to get them on board with reasonable cost-cutting.

 

We want to emphasize the defense team at KCB&A is going to closely watch, report and applaud when we see solid progress in stricter implementation of legal standards for accidents and lower PPD awards for folks smart enough to present claims properly to our hearing officers. If we see loose causation/accident decisions and goofy traveling employee awards, we will also let everyone in the industry know about it. And if you aren’t happy with your IL WC defense, hire us—we have one client who proudly advised us we helped him save $2M in IL WC costs last year with strong advice on his litigated and non-litigated claims. If you want to call him, send a reply.

 

As one example, we are advised some IL Arbitrators, particularly in downstate or “outstate” Illinois may be taking the Will County Forest Preserve District v. IWCC ruling as a basis to effectively “double” all shoulder permanency awards by changing traditional loss of use of the arm awards into loss of use of the body as a whole for the same permanency values. We didn’t read the decision to justify doubling permanency for shoulder injuries across the board. If that is happening, it is going to inflame the IL business community. Claimant Smothers in Will County Forest Preserve District only received 25% BAW for a truly messed up arm, oops we mean shoulder and a dramatic life change. Very few injured workers with operated shoulders undergo a dramatic life change—lots of men and woman recover unremarkably and have unremarkable permanency/impairment. If you are seeing this phenomenon, we want our readership to know it is out there, as it affects reserves, settlements and trial outcomes along with possible reform legislation. If you see it, please drop us a line with the case name/number.

 

In the same vein, the overall goal for IL WC is to get our benefits back to the middle of the United States and help our local economies compete with IN, WI, MI, IA and everywhere else in our country. The State of Oregon WC Premium Rankings come out in October 2016 or in sixteen months or so. The best place to track IWCC progress in making solid decisions on what is an accidental injury, what is related to such injuries and what injured workers should be receiving for permanency or impairment is right here. At least once a month, we are going to summarize what we see coming from our hearing officers. If you see outliers or odd rulings, please, please send them along.

 

We appreciate your thoughts and comments. Please post them on our award-winning blog.

 

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Synopsis: New Ruling on When a Joint Employer is Protected From Civil Suit by the WC Exclusive Remedy Clause. Thoughts and Analysis by Matthew G. Gorski.

 

Editor’s comment: On April 23, 2015, a recent decision in the IL Second District Appellate Court was filed regarding the issues of joint employers and the WC exclusive remedy clause in Section 5 of the IL WC Act. In Kay v. Centegra Health System, our Appellate Court affirmed the trial court’s decision to deny Plaintiff’s motion for summary judgment and granted Defendant Centegra Health System’s motion for summary judgment.

 

Kay involved an employee of Northern Illinois Medical Center (NIMC) who tripped over a cable while working in a lab at NIMC. She sustained injuries and pursued a workers’ compensation claim against her employer, NIMC. Following trial and appeal to the IWCC, she successfully received substantial workers’ compensation benefits of 60% BAW under coverage from NIMC.

 

Plaintiff then pursued a personal injury action against Centegra for negligence revolving around this same occurrence. Centegra was a corporate affiliate and sole member of NIMC. Before the trial court, Centegra successfully won on summary judgment arguing they were a joint employer with NIMC because they helped pay for and were listed as “Employer” with NIMC on the workers’ compensation policy that issued benefits to Plaintiff/Petitioner Kay. Therefore, Centegra was immune from civil suit under the exclusive remedy clause.

 

The Appellate Court did not find Plaintiff’s argument compelling that Centegra was not listed as a party respondent or took any active part of any of the workers’ compensation proceedings. The Appellate Court found it more compelling Centegra helped pay for the WC benefits that were issued to Plaintiff in her WC claim.

 

For all those companies and their insurance brokers out there who are listed on a joint WC policy with another company, be aware you are helping pay for the WC benefits of employees of the joint company. This ruling is a must-read to insure you are protected in similar settings. This concept may provide immunity to you in a personal injury action by the same worker under Section 5 of the IL WC Act, as you technically have paid or contributed to benefits to the injured worker who sought and received IL WC benefits from a joint employer.

 

This article was researched and written by Matthew G. Gorski, JD. Matt can be reached 24/7/365 for questions about WC at mgorski@keefe-law.com.

 

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Synopsis: Petrillo Expands in the Cook County Circuit Court—We Await Appeal to the Supreme Court.

 

Editor’s comment: All defense attorneys and adjusters/risk managers should beware of an unexpected ruling by Cook County Circuit Judge Kathy Flanagan, which appears to expand the rule in Petrillo v. Syntex Laboratories, Inc. and may create significant risk for defense counsels and their clients. If it isn’t changed on appeal, this ruling might impact WC law and practice at some point. In writing this article, we want to confirm we respectfully disagree with her thinking but we hold Judge Flanagan in the highest academic, scholarly and legal regard.

 

In Thompson v. University of Chicago Medical Center, Judge Flanagan ruled a defense attorney violated Petrillo by forwarding a copy of Plaintiff’s complaint to the attorney retained by a treating physician prior to the treaters deposition. Judge Flanagan entered substantial sanctions against Defendant. She further ruled defense counsel could not ask opinion questions of the witness, either at the deposition or at trial, and acted to strike many of the questions and answers from the witness’ deposition.


In Petrillo, the IL Appellate Court ruled defense counsel could not engage in ex parte communications with Plaintiff’s treating physician. The Appellate Court ruled “discussions between defense counsel and a plaintiff’s treating physicians should be pursuant to the rules of discovery only.” This unexpected decision caused numerous challenges about the scope of the new limitation and attacks by the defense bar on the rationale of the decision. The ostensible rationale of the Petrillo decision was a physician has a fiduciary and protected connection with their patient. Therefore, ex parte discussions or communications between the physician and defense counsel are felt to unfairly interfere with the patient’s rights and civil claims. We have often characterized this court-created protection as seeking to block the defense attorney from turning the treater into a “ventriloquist’s dummy” so they are somehow “tainted” by knowledge and supposedly say only what the defense wants them to say. We don’t feel doctors are so gullible and accepting they can’t talk to a defense attorney and still not be swayed or unduly influenced from their medical and scientific opinions.


Despite the Petrillo prohibition, the courts have also recognized a treating physician has the right to retain and consult with their own attorney, even though the physician may not be a party to the pending suit or before suit is filed. Thus, a physician has the right to seek the representation of counsel at any time they are to be deposed or testify, even if the physician is not a party. Presumably, the right to counsel includes the right for the physician’s personal counsel to be fully informed about Plaintiff’s claims, so their personal counsel can adequately “represent” the physician.


According to Judge Flanagan in Thompson this concept is not as clear. In Thompson, Plaintiff filed suit against the University of Chicago Medical Center (“UCMC”) and others alleging medical malpractice stemming from surgery performed by one of its surgeons. After written discovery of the parties was complete, the parties began depositions of treating physicians. Defense counsel for UCMC wanted to depose Dr. John Grayhack as he performed surgery on the minor Plaintiff similar to surgery performed at UCMC a year earlier. As he was concerned about being sued, Dr. Grayhack retained a personal attorney to represent him during the deposition. UCMC’s defense counsel obtained permission from Plaintiff’s attorney to send medical records to be used at the deposition to Dr. Grayhack’s attorney. When UCMC’s counsel sent the medical records, he also included health professionals’ reports attached to Plaintiff’s second amended complaint. Plaintiff’s counsel was copied on the correspondence to Dr. Grayhack. In our view, this means nothing was hidden.

When Plaintiff’s attorney learned defense counsel for UCMC forwarded the reviewing professionals’ reports to Dr. Grayhack’s attorney, he brought a motion to bar testimony at deposition. Judge Flanagan ruled any communication with the personal attorney for the physician which had not been specifically authorized by Plaintiff’s attorney was a violation of
Petrillo, and barred defense counsel from asking Dr. Grayhack any opinion questions, and further “deputized” Plaintiff’s counsel in advance of the deposition to instruct Dr. Grayhack not to answer any such questions if they were asked. During his deposition, Dr. Grayhack testified he had never seen the copy of Plaintiff’s complaint or the attached health professional reports.


Following the deposition, the court barred large parts of Dr. Grayhack’s testimony from being used at trial. UCMC filed a petition for a supervisory order to reverse Judge Flanagan’s ruling before the Illinois Supreme Court, and the IL legal community awaits a ruling on its petition.

 

We consider Judge Flanagan’s ruling to go far beyond the scope of Petrillo. We note UCMC’s defense counsel did not communicate directly with Dr. Grayhack. Next, the communication UCMC’s counsel had with the counsel for Dr. Grayhack was limited to forwarding medical records, as agreed by Plaintiff’s counsel and a copy of Plaintiff’s complaint and reviewing health professional reports. UCMC’s counsel was not sneaky about doing this--he copied counsel for Plaintiff on the correspondence. For that reason, we have no idea how it can be an “ex parte” communication—it is what we call an in parte communication. Further, Plaintiff’s complaint was a matter of public record, so Dr. Grayhack’s counsel could easily gone to the courthouse and obtained a copy of the complaint and reviewing healthcare practitioners’ reports. Finally, competent counsel representing a witness in a lawsuit such as this would attempt to analyze Plaintiff’s complaint and healthcare practitioners reports so they would be able to prepare their client for testimony.


We feel all Illinois trial defense counsels should be aware of this unusual ruling. We will continue to track progress on the final determination. We appreciate your thoughts and comments. Please post them on our award-winning blog.

5-25-15; IL WC Legislative Reforms Blocked in IL House But Battle isn't Over; Dr. Fletcher on Proposed IL WC Medical Fee Schedule Changes; Using Cell Phones to Informally Video Depositions and more

Synopsis: IL WC Legislative Reforms Blocked; Gov. Rauner Remains Irresistible Force/Immovable Object—Can Our WC System Get Out of His Crosshairs?

 

Editor’s comment: New IL Governor Bruce Rauner announced plans to introduce legislation on workers' compensation, government restructuring and term limits. The Illinois House of Representatives debated and voted against workers compensation reform but did not take up tort reform. The Illinois House debated and voted on four workers' compensation amendments. The first three failed and the fourth passed. Here are details about the proposed legislative amendments:

 

Ø  Amendment 1 added a "major contributing" cause standard to evaluation of accidental injuries under IL WC. It failed to pass on a vote of 0-69-38.

Ø  Amendment 2 would have changed AMA guideline usage in determining permanency; it may have caused much lower awards. This also failed 0-69-38.

Ø  Amendment 3 was a 30% IL WC medical fee schedule cut. This failed to pass with a vote of 0-69-37.

Ø  Amendment 4: WC insurance rate regulation and safety premium and self-insured fee reductions. This was adopted by the House 68-0-39.

 

Most of the House Amendment on insurance rates was insurance-ese. See below--this is the major proposed change to the IL WC Act for the IL WC community to note—remember it has to be passed in the Senate and signed by Gov. Rauner to become law:

 

(820 ILCS 305/4e new) Sec. 4e. Safety programs and return to work programs; recalculation of premiums and waiver of self-insurers fee.

 

(a) An employer may file with the Commission a workers' compensation safety program or a workers' compensation return to work program implemented by the employer. The Commission may certify any such safety program as a bona fide safety program after reviewing the program for the following minimum requirements: adequate safety training for employees; establishment of joint employer-employee safety committees; use of safety devices; and consultation with safety organizations. The Commission may certify any such return to work program as a bona fide return to work program after reviewing the program for the following minimum requirements: light duty or restricted duty work; leave of absence policy; and full duty return to work policy. The Commission shall notify the Department of Insurance of the certification.

 

(b) Upon receipt of a certification notice from the Commission under this Section related to an employer that provides workers' compensation through an insurer, the Director of Insurance shall immediately direct in writing the employer's workers' compensation insurer to recalculate the workers' compensation premium rates for the employer so that those premium rates incorporate and take into account the certified program.

 

(c) If any workers' compensation safety program or a workers' compensation return to work program implemented by a self-insured employer is certified under this Section, the annual fee under Section 4d of this Act is waived for the self-insured employer as long as the workers' compensation safety program or a workers' compensation return to work program continues. The self-insured employer shall certify the continuation of the program by each July 1 after the waiver is obtained.

 

What we consider ironic and embarrassing about this proposed change to the IL WC Act is the two biggest WC programs in our State that don’t have either a safety program or a return to work program are the State of Illinois itself and the City of Chicago. Both governments are literally tens of billions of dollars in choking debt. We hope Governor Rauner, Senate President Cullerton and House Speaker Madigan along with Chicago Mayor Rahm Emanuel and Alderman Ed Burke follow the concept espoused in this new proposed WC amendment and initiate safety and return to work programs and save hundreds of millions of dollars. The defense team at KCB&A is happy to consult with these governments and any of our readers on getting this into place at no charge.   

 

The Madigan-Hates-Millionaires Tax Gets Postponed—We Hope It Dies In the IL Field of Bad Anti-Business and Anti-Jobs Ideas.

 

Speaker Madigan’s millionaires tax suffered a near-defeat in the Illinois House last Thursday. In a victory for the business community, specifically small business and entrepreneurs, the IL House was unable to pass HJRCA 26. It would set up a general election vote in November 2016 on whether to add a 3 percent surtax on incomes above $1 million. As he saw his pet project going south, Sponsor House Speaker Michael Madigan postponed consideration, so it could come up for another vote. The IL State Chamber calls it a tax on being successful and we agree fully with that sentiment. We also note Speaker Madigan claims the money raised is going to be “ear-marked” for education. If you are reading the Illinois newspapers and other media outlets, you may note the Chicago Tribune highlighted another type of fake pension abuse among our educators in a front-page article where taxpayers are being forced to pay for school districts that dramatically boost salaries in the last year or so of a retiree’s career to insure they get the highest possible fake pension from state government and also force IL taxpayers to also pay significant penalties for what the school districts are doing in tricking up the pensions. Along with recent news articles documenting numerous financial abuses in  our colleges and universities, starting with the College of DuPage, we aren’t as excited to hear the supposedly soothing legislative mantra that over a billion dollars in new increased taxes will go to “education.”

 

Please note this massive new state tax might end any interest star athletes like Chicago Bears Quarterback Jay Cutler, Chicago Cubs Pitching Star Jon Lester or Chicago Bulls Guard Derek Rose from living in our state. By our math, the cost of this tax to such athletes would be over $1.2M each year of their short careers. In our view, you can buy a pretty nice estate in Merrillville, IN or Racine, WI with $1.2M a year and avoid some or all of the new proposed tax. In our view, such a tax would basically empty out Trump Tower and the successful folks that reside there—one wag in our office asked that if he is successful in “taxing the successful,” Speaker Madigan should have Trump Tower dug up and carefully moved across the state border. We would prefer to have stock brokers, surgeons, entrepreneurs and lots of hard-working and successful people want to live in our state and not give them an enormous impetus to leave and bring their businesses and jobs with them.

 

This also leads to another reason we are chagrined and disappointed with Speaker Madigan—he clearly understands to raise our taxes in such fashion, he needs to change the IL Constitution. He is more than willing to fight to do so to try to fund the multi-billion-dollar mistakes he has made in the forty-plus years he has been in our General Assembly. When it comes to reforming our laws on the hilariously underfunded fake pensions that are choking IL government, Speaker Madigan proposed and enacted two laws to reform the fake pensions and post-retirement healthcare costs for state workers. His daughter, Lisa Madigan is a diligent and brilliant jurist who basically was run out of court twice with overwhelming and unanimous Supreme Court majorities who all agreed such legislative changes from her father violated the IL Constitution. The only way to reform fake pensions and growing health care costs for state retirees is an emergency Con-Con or Constitutional Convention or a proposed and sweeping amendment to the IL Constitution. If anyone can do that, Speaker Madigan can—the question is will he?

 

Please Note This is a Respite But the Work Isn’t Over In Bringing IL WC Costs Down

 

We caution our readers on both sides of the WC matrix—next year in October 2016, the Oregon WC Insurance Premium Ratings will be published and literally everyone in this industry and our legislature is going to be watching. It is our strong hope new IWCC chair Joann Fratianni and her team remain sensitive to the needs and wishes of the IL business and government community. IL WC needs to be in the middle of the United States and competitive with all states around us. We also hope the great folks who regularly meet and discuss/debate judicial issues with the local Circuit Court judges who handle/decide WC claims and the august members of the IL Appellate Court, Workers’ Comp Division get the same message.

 

Right now, Governor Rauner has a political “war chest” of at least $34M and he is ready, willing and able to use it to create an IL legislature in his image and likeness in the next seven years or so. Bruce Rauner is a brilliant manager and executive. He is used to getting his way and is going to go to great lengths to improve our state. If and when he gets control of the IL General Assembly in either two or four years, we hope workers’ comp is a distant memory for his whole team, as IL WC should already be reasonable, professional and competitive in considering claims and doling out the crucial benefits injured workers need.

 

We appreciate your thoughts and comments. Please post them on our award-winning blog.

 

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Synopsis: Dr. David Fletcher – Wrong Focus on IL Workers’ Compensation Debate

 

Editor’s comment: This is a guest article by Dr. Fletcher who is a businessman, physician, scientist and workers’ comp professional. It is being published with his permission and without any changes.

 

The State Journal-Register has been covering Gov. Bruce Rauner's plan to slash workers' compensation costs as part of his heavily self-touted re-engineering plan for Illinois. So far, the debate has ignored the doctors' perspective, including the burden of insurance carrier micromanagement of medical services, the costs of practicing medicine in Illinois, effect on patients because of a lack of access to necessary care, and lack of strategies by employers to realize cost savings by focusing on prevention of workplace injuries.

 

The Governor believes the fee schedule for medical payments in Illinois is higher than many other states, which, depending on how you define "many," is simply not accurate. In reality, "Medical payments per claim in Illinois were closer to the middle group of states," according to the April edition of the Workers' Compensation Research Institute CompScope Benchmarks. The legislature first imposed the medical fee schedule upon doctors in 2005, resulting in a 24-percent reduction in medical charges. The schedule was reduced again in 2011 by an additional 30 percent, and as a result of these changes the Oregon Department of Consumer and Business Services concluded Illinois experienced the steepest drop in medical costs in the nation.

 

The National Council on Compensation Insurance also concluded medical costs do not constitute the majority of Illinois workers' compensation expenditures. Despite these dramatic reductions in medical costs, workers' compensation insurance carriers continue to price-gouge with premiums increases rather than pass any of the savings onto Illinois employers. Workers' compensation insurance is now so profitable that 333 different insurers currently sell workers' compensation insurance in Illinois. The paperwork and other demands of workers' compensation far exceed that for privately insured patients; additional fee cuts to physicians will force medical providers to stop accepting workers' compensation patients. Immediately following the implementation of the 2011 workers' compensation reform, the Illinois Workers' Compensation Commission recognized that patient access to critical care was dwindling as a direct result of the 30-percent medical fee reduction, which dropped routine office evaluation and management visits well below Medicare rates.

 

On July 16, 2014, the IL WC Commission voted 9-0 to immediately raise evaluation and management office visit codes to at least Medicare levels to reverse the crisis ensuing from doctors' offices basically washing their hands of such patients because they cannot afford to treat them. In essence, Rauner is quick to blame workers' compensation industry shortcomings, with the message that benefits must be slashed to entice businesses to invest in the state of Illinois. His stance, on the contrary, should be focused on insurance industry oversight, as well as on employer awareness initiatives that promote wellness in the workplace and focus on the prevention of injuries.

 

The insurance industry offers a variety of reasons why premiums have not gone down. Enough with the excuses. The governor should not require further sacrifices on the backs of the injured worker and the medical community taking care of these workers without demanding insurance companies reduce premiums to reflect the prior reforms.

 

Editor’s note: One aspect of the recent proposed WC legislation that was kept under wraps until the very end of the debate were the proposed changes to the IL WC Medical Fee Schedule. If there are strong justifications to again review and modify the schedule, we hope there will be more debate and discussion on how to best do so.

 

We appreciate your thoughts and comments. We are happy to relay your best thoughts to Dr. Fletcher for his response.

 

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Synopsis: The Care and Feeding of Great Physicians in Medical Depositions—Can They Informally But Openly Videotape a Deposition with Their Cell Phone?

 

Editor’s comment: We hear one complaint over and over from physicians who have been deposed in litigation. They are tired of being confronted, yelled at and sometimes personally abused by attorneys on both sides of the fence. We want great physicians, surgeons and scientists to participate in litigation and we do not want them to be the subject of the slightest ill-treatment of any kind.

 

If an attorney participating in a medical deposition starts to raise their voice, ask insulting questions or otherwise act abusive, we are recommending the physician or any expert take out their cell phone, confirm for everyone in the room and on the record they are going to video the event, then stand the phone up on the table and make a video recording of the deposition. The recording could be saved to the physician’s complete file.

 

As another approach, attorneys on both sides could openly and informally video the deposition with the caveat they keep the recording in their own file, as all of it would be covered under HIPAA-GINA.

 

Whatever happens, we feel the request for videotaping should be in the notice of deposition and/or part of the agreement to take a deposition under the IL Rules Governing Practice before the Workers’ Compensation Commission. We suggest doctors include the request in their billing or correspondence confirming the setting of the date/time/cost of the deposition.

 

We are sure cell phone recordings would save the increased cost of needing a formal videotaped deposition but should also cause the attorneys to stop or end any abusive behavior, as there would be documentation of it. We feel the attorney who has retained the expert to be deposed should caution their opponent not to act in an abusive manner or potentially face sanctions.

 

Some of the abusive tactics we have seen in depositions are

 

              An attorney continually telling the deponent only to answer “if they know” the answer—this is a tactic designed to coach the witness not to answer;

              Frequent or endless objections to every question;

              Instructing a witness not to answer important questions;

              Repeatedly going off the record to delay;

              Asking the deponent the same question over and over again.

 

By informally documenting all of this with an inexpensive cell phone video, it would be much easier for a Circuit Court judge or Arbitrator to rule on the behavior of the parties conducting the deposition. We would love to hear the best thoughts and ideas from our readers on this approach to medical or other depositions.

 

We appreciate your thoughts and comments.

5-18-15; IL Speaker Madigan Jamming IL WC Reform for a "Fail;" Is the Worker an Employee or Independent Contractor by Arik Hetue, JD; Are IL Gov't Fake Pensions "Unfundable?" and more

Synopsis: Springfield Update—IL Speaker Madigan to Jam WC Reform Legislation for a “Fail.”

 

Editor’s comment: As you read this, IL House Speaker Michael Madigan set two different “Committees as a Whole” in the Illinois House—a “Committee as a Whole” hearing is a combined hearing for all members of the Illinois General Assembly. In both such hearings, the testimony at the first hearing was directed at knocking down the proposed IL WC reforms with a second session designed to rail and rock against caps on medical malpractice claims or tort reform. It appeared to us the Illinois Trial Lawyers Ass’n effectively got control of the inner workings of the Illinois General Assembly to dominate the hearings and present their positions on either subject. The amount of testimony from the side of Illinois business was relatively limited.

 

Did this strategy work? Well, this morning the news was Speaker Madigan was calling the WC reforms for a vote on Thursday, May 21, 2015. What is odd about that announcement is the IL WC reform measures haven’t been reduced to actual legislation by their sponsors. All we have seen to date are media proposals from new Governor Rauner without any real language for the legislators to actually consider or seek to modify, as they always do. We assume Governor Rauner and his team continue to troll for WC reform votes from our legislators without having to actually write anything down.

 

What it appears may now happen is House Speaker Madigan is going to have his staff create and propose similar WC “reform legislation” so that can be called for a vote and then knocked out by the heavily Democrat-controlled General Assembly. Obviously Speaker Madigan feels he has little to no concern about any meaningful WC reform passing. We assume the expectations of Speaker Madigan in using this unusual tactic is to quell debate and get WC reform off the State’s agenda so they can move forward to deal with other issues that have been discombobulated by our kooky legislators in years past.

 

As we have repeatedly advised our readers, we feel the true WC reform in this state is going to come from our hearing officers at both the Arbitration and Commission level. If they start to handle “causation” or “major contributing cause” with a common sense approach, you don’t need WC legislative reform. If they start to handle the “traveling employee” concept consistent with the language of the IL WC Act that requires an accident to “arise out of” the employment, you don’t need WC legislative reform. Arbitrators and Commissioners can currently deal with impairment ratings as they feel best, even as they consider all the other statutory factors in the IL WC Act.

 

In short, we hope our administrators start to apply the current English-language version of the Illinois Workers’ Compensation Act and drive our State to the middle of the fifty United States and get workers’ comp reform off the legislative agenda. When that happens, Speaker Madigan and his troops can stop their shenanigans and public relations fluff.

 

We appreciate your thoughts and comments. Please post them on our award-winning blog.

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Synopsis: Is the Worker an Employee or an Independent Contractor? Recent Case Law Clarifies IL’s Position on this Complex Question. Thoughts and analysis by Arik D. Hetue, J.D.

 

Editor’s comment:  We have seen this scenario played out many times in the past, and business is always trying to navigate a very sticky wicket of how to have just enough control over a worker such that they will be classified as an independent contractor. Over the past 10 years, the rise of former trucking companies which style themselves as logistics companies who then farm out the driving to “independent” drivers was the most recent version of this intricate dance. Please, Illinois business, be careful when trying to tango with our law.

 

In the case of Steel & Machinery Transportation v. IWCC, published on May 1, 2015, the IL Appellate Court, WC Division confirmed, again, the more control over a driver a company asserts, the more likely the driver will be found to be an employee of the company. As many of our readers are aware, there is no bright line rule for this classification. In Illinois, as in many of our sister states, we resort to a multi-factor analysis to determine a driver’s status. Among the various issues to be analyzed are who is providing the insurance, how the driver is paid, who controls the routes, who decides the jobs, whether logos are in place, and a variety of other factors. We have seen in the past the primary factors will generally be the nature of the work, who controls the work, and whether the driver has independent WC insurance.

 

In  4-1 split decision, the Workers Compensation Division of the Illinois Appellate Court ruled a truck driver was entitled to our generous IL WC benefits after his injuries from a crash necessitated the partial amputation of his leg since he was an “employee” of the company that hired him to transport a load from Indiana to Wisconsin.

 

The facts were essentially uncontested – Driver Radomir Cvetkovski worked as an over-the-road truck driver and he owned his own tractor-trailer. In June 2005, Respondent Steel & Machinery Transportation contracted with Mr. Cvetkovski to transport a shipment of steel from Indiana to Wisconsin. After Mr. Cvetkovski picked up the load in Indiana, he drove his vehicle to a truck stop, and then went home for the weekend as the delivery was due on Monday. On Monday morning, he left to deliver the load, but during his transit to WI, he was in a severe accident and the result was a below-the-knee amputation to his left leg.  

 

Mr. Cvetkovski filed a claim for IL WC benefits, but Steel & Machinery disputed the claim, arguing it should be denied as Mr. Cvetkovski was an “independent contractor.” Please note his “independence” did not include the purchase of a policy of WC insurance to cover himself in case of a work-related loss or injury. An Arbitrator, the Commission, and the Circuit Court all agreed Mr. Cvetkovski satisfied the requirements to be considered an employee and awarded benefits.

 

Among the facts related to this finding, the most important tended to be in the area of control – while Claimant owned the truck he was driving, according to the Agreement between the parties, the truck and equipment used were for Steel & Machinery’s “exclusive possession, control and use for the duration of [the] Agreement.” Also – while Claimant was on driving routes, the testimony indicated he drove solely for Respondent during his years working with them, and he suffered negative consequences if he ever turned down a delivery. While he could technically work for other parties, the Agreement subjected this activity to a wide range of subjective hoops he would have to jump through and approval would be required before he could do so. While driving, he would be contacted every couple of hours by a Respondent dispatcher, who would direct routes and deliveries.

 

Going the other way, there were facts that lead to an inference Claimant was an independent contractor – specifically, his ownership of the truck, payment of upkeep for the truck, his per job payments with no tax withholdings, and the fact the company did not require him to submit to a dress code or appearance code.

 

In any case, this determination was a finding of fact – and as such, following the Commission decision, it could only be overturned under the business-dreaded “manifest weight of the evidence” standard. In light of the fact there were reasonable facts on both sides of the employee/independent contractor question, either decision by the Commission would have been sustained under the manifest weight standard. As any defense veteran knows, this is an extraordinary burden to meet.

 

Presiding Justice William Holdridge issued a very interesting dissent where he noted "under our court’s current interpretation of the law, it has become virtually impossible for a trucking company and an independent driver/lessor to structure their relationship in a way that reliably precludes a finding of an employment relationship, even if that is the clear and expressed intent of both parties." Justice Holdridge felt a more reasonable approach would be to adopt a position allowing a trucking company's compliance with regulations that require it to exercise control over a driver to not equate to evidence of the company’s control over the driver for the purposes of determining the driver’s contractor status. What this means for us in IL business is the more control, the more likely it is an employee status. Even if the control asserted is required under federal law. Please be very careful in how you handle such relationships.

 

Editor’s note: If this employer “forced” or otherwise required this claimant to have his own WC coverage and provide a certificate of insurance to them, there is a much stronger chance this driver would have been viewed as “independent.” It is our view, as the driver had no WC coverage, the reviewing court put the WC coverage on the company that had it. We tell all our clients and readers—never, ever hire a sole proprietor to work for you and allow them to “opt-out” of WC coverage. It can be financially disastrous to do so—if you aren’t sure, send a reply and we will explain further. Please note, this claim involved an partial leg amputation. The cost of such a claim could be $300K or over seven-figures, if the guy can never drive or work again. You may also note the claim has been pending for around 10 years—litigation costs are probably high.

 

An Illinois worker who is injured for an employer that doesn’t have any WC coverage for them can:

 

  • Sue in Circuit Court for the injuries;
  • Sue at the IL Work Comp Commission too;
  • Any benefits received from either venue don’t offset;
  • The employee can “pierce the corporate veil” and seek to go after the employer’s personal assets;
  • It is a felony to operate in IL without WC coverage.

 

This article was researched and written by Arik D. Hetue, J.D. who can be reached at ahetue@keefe-law.com. If you would like to review a copy of this decision, please feel free to email him with any comments or concerns, or you can post them to our award winning blog!

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Synopsis: Another Quick Thought on IL Fake Government Pensions—It is Hard to Pre-Fund Them When The Multi-Million Dollar Benefits Are The Equivalent Of Winning the Lottery!

 

Editor’s comment: A reader sent us a quick note about articles being published across our state by Robert Rich who is the retired director of the Institute of Gov’t and Public Affairs at the U. of I.  If you want links, send a reply. His articles follow a tired theme—why doesn’t IL government simply “pre-fund” what is or will be due on the state government fake pensions? Trust us, that sounds simple but isn’t nearly that easy when you consider how lucrative the fake pensions are when the workers get to the money.

 

We assure you some of the fake pensions are simply “unfundable” if you understand the math. Pensions are supposed to be pre-funded with three sources—personal contributions, “matching” state contributions and investment income. When they are not pre-funded, the “pension clause” requires taxpayers to make up the balance after the sometimes retired worker leaves gov’t employ. So consider pre-funding one legislative fake pension. Just one. Please note the late Judy Baar Topinka was a legislator for six years. As a legislator, she made $60K a year and put in 10% of her salary to become vested in only four years of service. Her total personal contribution to the fake pension plan in six years was six years times $6K a year or $36K. When she passed, she was seventy years old. Her annual pension for six years of work was $150K or 2-1/2 times her highest legislative salary.

 

If Judy lived to 90 years of age, and lots of folks are living to ninety, she would have received $150K a year with annual 3% compounded increases over twenty more years. Her annual fake pension payout would have doubled to over $300K. In short, she would have received another $4-5M in that time. Try to get your head around Judy making a $36K contribution while working for us and then be entitled to literally millions and millions after working for us. As Mr. Rich’s articles validly point out, most of the “unfunded money” is “back-funded” and therefore comes from current tax dollars. The eventual payout to all Illinois legislators is the equivalent to winning the Lottery when you consider they can easily get millions for a four-year contribution less than $50,000.

 

To pre-fund or set aside what is needed to justify that much pension money for Judy Baar Topinka, the State of IL would have had to put about $500,000 a year or more into Judy’s pension fund every year she was working as a legislator. That is a LOT of pre-funding. There are 113 Illinois legislators and they change with great regularity. We assure you President Obama was in our General Assembly and is eligible for the same fake pension right now and can also receive millions over the rest of his life for his limited IL pension contributions.

 

We assure you this math is accurate. We are not annuitants, like Mr. Rich but we are sure for our State to pay out $4-5M in fake pension benefits over 20 years, you need to start with something like $3M or more. The current annual amounts being back-funded and annually paid to former Illinois legislators is over a quarter of a billion dollars a year and continuing to rise. In our view, our fake legislative pension program is designed to be “unfundable” and seems similar to legislators stealing our tax dollars to almost secretly get that much from us long after they have stopped working in the legislature. The judicial fake pension set-up is similarly shockingly unfundable and pays millions to each jurist after they have left the bench. As another egregious fake pension, City of Chicago school teachers only contribute 2% of their annual income to their pensions—in 20 years to become vested, they haven’t put one full year of salary into the “kitty.” That pension system is relatively “unfundable” costing Chicago taxpayers billions. Hard-working taxpayers hated welfare programs because folks got lots of your money for doing nothing. Why doesn’t that same ethic apply to fake government pensions?

 

Either way, while they are working for us, we don’t want to pay any legislator their annual salary and set aside literally millions in their four years of service to pre-fund these gigantic lifetime pensions. Illinois legislators aren’t full time employees—the legislature is in session about 50 days each year! Lots of them don’t have 100% attendance and show up when something important happens.

 

We vote Illinoisans consider Con-Con--an emergency constitutional convention and rewrite the whole thing. In making that recommendation, we would end the legislative fake pension program completely—there is no reason a part-time worker earns a generous lifetime pension with guaranteed annual increases after only four years of part-time service. And as a final note, we agree with Mr. Rich to the extent that we feel our IL Constitution should have a “taxpayer-protection” clause requiring any and all money used for a government pension should have to come from either the pensioners’ contributions or whatever the Government paid to match their money while they were employed by taxpayers.

 

Rant over—we appreciate your thoughts and comments. Please post them on our award-winning blog.

 

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Synopsis: Can the IL WC Community Help Dominic Secure His Forever Friend!

Editor’s comment: Please consider making a donation to Dominic’s GoFundMe account to aide in efforts to obtain a service dog. Dominic is an amazing 7-year-old non-verbal autistic boy who was recently diagnosed with seizures in January of 2015. It became very clear he needed to do more on a more personal level to help Dominic with his confidence and self-esteem. Research on service dogs followed and the family learned this was the right choice. This young man struggles on a daily basis to dress himself, bathe himself and almost daily suffers from self-injurious behavior because of his inability to be able to communicate. The family reached out to an organization called Argos Unlimited K9 who work with service dogs and they immediately told the family they would be able to help Dominic! Some of the things they will be able to assist Dominic with are

·         To help prevent him from wandering or running away by wearing a tether or barking to alert us of his whereabouts that are not safe.

·         To help with self-soothing during melt-downs. The tactile stimulation, whether by petting, hugging, or having the dog actually lie on the child, can help the child learn the skills of calming themselves.

·         Socialization including serving as a "social bridge", so as children and adults come over and ask about the dog, the child with autism is prompted to answer. The parent should not answer questions, but should refer all inquiries to the child. Thus with the dog, rather than having just the parent or teacher try to bring the child out of their own world, the entire community is talking to the child.)

·         4)The dog will wear Dominic’s communication device so that he will not have to travel to find it and he can communicate more easily.

·         5)Dominic has also show a great interest in water and the number 1 killer amongst children in children of the autistic community is accidental drowning. The service dog will be trained not only in water rescue but also to alert the family by barking if Dominic goes into the nearby lake in his subdivision or also gets into our bathtub without the family’s knowledge.

This is where you come in……the cost of a service dog is $12,000.00. Since starting their GoFundMe account the family has been blessed with donations from other family members, colleagues and friends and would like to keep the momentum going for Dominic. They would like to share with you a picture of their beloved Dominic and the service dog Jax who is in training now to hopefully come to the family within the next 18 months to help Dominic in his daily living. She will attend school with Dominic and be a lifelong companion to not only Dominic but the family. They want to thank you all should you consider making a donation!

The attorneys at KCB&A have already donated and may donate even more. Consider $10, $25, $50 or $100—give what you feel best. To contribute to this great cause or for more info, go to http://www.gofundme.com/lk29y8