3-12-2019; Not All Injuries in the Workplace Are Covered Under WC; IL WC Claims Dwindle--Will the New Tax Cause Fewer and Fewer Claims?; Rate the IL WC Arbitrators

Synopsis: Not All Injuries Occurring in the Workplace Are Covered Under Workers’ Comp—Thoughts from the Bard--Thomas A. Robinson, co-author, Larson’s Workers’ Compensation Law

Editor’s comment: Mr. Robinson and the team at Larson’s published some amazing thoughts that I consider to be a must-read for anyone managing U.S. work comp claims. If you want the equivalent of the Bible on U.S. Work Comp, subscribe to Larson’s.

 

Mr. Robinson confirms there are important developments in workers’ compensation law as reported in the latest release of Larson’s Workers’ Compensation Law, which is scheduled to ship to customers this June. To subscribe to Larson’s Workers’ Compensation Law, go here.

 

Positional versus Neutral Risks

 

Chapters 4-9 of the Larson Treatise discuss the sorts of risks faced by a given claimant who contends his/her injury arose out of the employment. Generally speaking, those risks fall within three broad categories:

 

1. Risks distinctly associated with the employment,

2. Risks personal to the claimant, and

3. “Neutral” risks—i.e., risks having no particular employment or personal character.

 

Harms from the first—risks distinctly associated with employment--are universally compensable.

 

Those from the second—risks personal to Claimant--are universally non-compensable.

 

It is within the third category that most controversy in modern workers’ compensation law occurs. Chapter 7 of the Larson Treatise, which treats positional and neutral risks, has been updated and revised.

 

An increasing number of courts across the U.S. make awards whenever the injury occurred because the employment required the claimant to occupy what turned out to be a place of danger. A few frankly state that causal connection is sufficiently established whenever it brings claimant to the position where he or she is injured.

 

In some states, unexplained falls and deaths occurring in the course of employment are generally held compensable, sometimes on the strength of a presumption, either judicial or statutory, that injury or death occurring in the course of employment also arises out of the employment in the absence of evidence to the contrary. For example, in Griego v. LaSalle, 2018 N.M. App. LEXIS 62 (Oct. 16, 2018), the New Mexico court, citing the Larson’s Treatise, held that a workers' compensation judge erred in denying a worker compensation under N.M. Stat. Ann. § 52-1-9 (1973) because, while the worker apparently tripped over his own foot, causing him to fall and injure his arm, the facts demonstrated that the worker's injury was the result of an unexplained fall, which constituted a neutral risk that gave rise to a rebuttable presumption that the injury arose out of the worker's employment, and the employer/insurer failed to rebut the presumption with evidence that the worker had any preexisting conditions or infirmities that caused or contributed to his fall—risks that were personal to him [see Larson’s Workers’ Compensation Law, Ch. 7, § 7.04[1][a] Digest n. 2].

 

Risks Personal to the Employee

 

Injuries arising out of risks or conditions personal to the claimant do not arise out of the employment unless the employment contributes to the risk or aggravates the injury. This core issue, discussed in Chapter 9 of the Larson Treatise, has also been updated. When the employee has a preexisting physical weakness or disease, this employment contribution may be found either in placing the employee in a position which aggravates the effects of a fall due to the idiopathic condition, or in precipitating the effects of the condition by strain or trauma. In one recent case, Bluml v. Dee Jay's Inc., 2018 Iowa Sup. LEXIS 101 (Nov. 16, 2018), in a divided decision, the Supreme Court of Iowa adopted the minority American rule that all work-related risk factors must be considered in determining the compensability of an idiopathic fall. Citing the Treatise, the court held that the hardness of the floor should be considered in a worker’s idiopathic fall to a level ceramic tile floor, depending upon the facts of the particular case. Accordingly, the majority of the Court reversed a decision of a state district court that (along with the deputy commissioner and the commissioner) had concluded, as a matter of law, that idiopathic falls onto level floors were not compensable [see Larson’s Workers’ Compensation Law, Ch. 9, § 9.01[4][e] n. 54].

 

Nature and Scope of the Exclusiveness Principle

 

At the utter core of workers’ compensation law is the principle that the compensation remedy is exclusive of all other remedies by the employee or the employee’s dependents against the employer and insurance carrier for the same injury, if the injury falls within the coverage formula of the act. This discussion, found in Chapter 100, has been updated and revised. Generally speaking, if it does not, the compensation act does not disturb any existing remedy. However, if the injury itself comes within the coverage formula, an action for damages is barred even although the particular element of damage is not compensated for, as in the case of disfigurement in some states, impotency, or pain and suffering. Some of the most interesting cases occur within this area of law. In Baiguen v. Harrah's Las Vegas, 426 P.3d 586 (Nev. 2018), for example, the Supreme Court of Nevada reversed a decision of the state’s court of appeals, holding that a Las Vegas casino employee could not maintain a civil action against his employer to recover damages for its alleged delay in seeking medical treatment following his suffering of a stroke just prior to the beginning of his work shift. His tort action was barred by the exclusive remedy provisions of the Nevada Industrial Insurance Act [see Larson’s Workers’ Compensation Law, Ch. 100, § 100.01[1] Digest n. 2].

 

For the equivalent of the Bible on U.S. work comp law, there is no better source than Tom Robinson or the Larson’s Treatise. I appreciate your thoughts and comments. Please post them on our award-winning blog.

Synopsis: Will a Graduated IL State Income Tax Cause Even Fewer IL WC Claims?

 

Editor’s comment: I am saddened to read our new Governor is committed to enacting a constitutional amendment for the purpose of imposing a graduated income tax. The top tax rate was announced at 7.95% which is comically high when one considers there are any number of states that have no income tax at all.

 

I want my readers to note IL WC claims continue to drop in number, jobs and businesses leave our state. At one point not so long ago, 75,000 new IL WC claims were being filed each year. Now, the IL WC Commission’s annual report confirms:

 

  • In Fiscal Year 2013   42,543 New IL WC Claims were filed

  • In Fiscal Year 2014   43,742 New Claims

  • In Fiscal Year 2015   42,758 New Claims

  • In Fiscal Year 2016   41,777 New Claims

  • In Fiscal Year 2017    39,840 New Claims

 

Notice a trend? No one in Springfield is talking about creating new opportunities for private industry or bringing in jobs—all we hear is how to make government bigger and more expensive while hitting Illinoisans with the highest combined tax burden in the entire country. We have skyrocketing real estate taxes, sales taxes and soon-to-be income taxes.

 

What is bad about high income taxes? Well, please note Chicago Cubs star hurler Jon Lester will be paying $1.6M in IL income taxes each year under the new Pritzker graduated income tax plan—If Lester would pitching for the Miami Marlins or the Tampa Bay Rays, he would make the same money and not pay any state income tax. What we are sure to see is star professional athletes seeing this math and not wanting to play for the Chicago Bears, Bulls, Blackhawks, Cubs and White Sox. Some folks say high taxes in Canada is a reason there hasn’t been a Canadian team to win a Stanley Cup in more than two decades!

 

What also galls me is the fact our Governor and Legislature are more than happy to amend the IL Constitution to raise these staggering new taxes without ever considering altering the Constitution to take out the “Pension Clause” that is the real reason our State government is broke—unfundable fake government pensions. As I have said many times in the past—they should enact a new constitutional amendment that ends the “something for nothing” aspect of fake government pensions and requires gov’t pensioners to receive NO MORE than

 

  • Their pension contributions during service,

  • Whatever the State matches during service and

  • Any investment income accrued at any time.

This simple concept would end the rip-off of taxpayers who work hard and shouldn’t have to pay for government pensioners to NOT work but still receive double, triple or quadruple what they made while actually working for us. If you aren’t sure current Governor Pritzker and the IL Legislature are again “kicking the can down the hill” in funding these fake pensions. This will insure your grandkids and great-grandkids and their great-great-grandkids will be paying off the spiraling fake gov’t pension debt.

 

In the interim, Illinois is certain to keep losing jobs and WC claims will continue to dwindle. I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

 

Synopsis: Rate The IL WC Arbitrators

Editor’s comment: Please find below the link to the IL WC Arbitrator Evaluation Survey. Arbitrators are to be rated only on the basis of personal knowledge. It is possible that you will not be able to rate all of the arbitrators or answer all of the questions for each arbitrator on the evaluation form.

If you have specific knowledge as to the qualifications of an arbitrator to give a fair, informed opinion as to those qualifications, please respond to the questions for that arbitrator by answering “Y” (Yes) or “N” (No) to the questions asked. If you have no opinion on a particular question, the question should not be answered and will be tabulated as a “No Opinion” response that will not affect the arbitrators rating. Specific instructions on form completion and submittal are available on the link.

If you do not have specific knowledge as to the qualifications of an arbitrator please skip that arbitrator and move on to the next arbitrator. Forms must be submitted to the Commission by April 22, 2019.

https://www2.illinois.gov/sites/iwcc/resources/Documents/2019ArbitratorEvaluationForm.pdf

 

Synopsis: Join KCB&A with the IL State Chamber for the IL WC Workshop on April 2, 2019 in Naperville. The link to register is: http://events.constantcontact.com/register/event?llr=omjkt4dab&oeidk=a07eg2i2618bf7c6629

 

Synopsis: Not All Injuries Occurring in the Workplace Are Covered Under Workers’ Comp—Thoughts from the Bard--Thomas A. Robinson, co-author, Larson’s Workers’ Compensation Law

Editor’s comment: Mr. Robinson and the team at Larson’s published some amazing thoughts that I consider to be a must-read for anyone managing U.S. work comp claims. If you want the equivalent of the Bible on U.S. Work Comp, subscribe to Larson’s.

 

Mr. Robinson confirms there are important developments in workers’ compensation law as reported in the latest release of Larson’s Workers’ Compensation Law, which is scheduled to ship to customers this June. To subscribe to Larson’s Workers’ Compensation Law, go here.

 

Positional versus Neutral Risks

 

Chapters 4-9 of the Larson Treatise discuss the sorts of risks faced by a given claimant who contends his/her injury arose out of the employment. Generally speaking, those risks fall within three broad categories:

 

1. Risks distinctly associated with the employment,

2. Risks personal to the claimant, and

3. “Neutral” risks—i.e., risks having no particular employment or personal character.

 

Harms from the first—risks distinctly associated with employment--are universally compensable.

 

Those from the second—risks personal to Claimant--are universally non-compensable.

 

It is within the third category that most controversy in modern workers’ compensation law occurs. Chapter 7 of the Larson Treatise, which treats positional and neutral risks, has been updated and revised.

 

An increasing number of courts across the U.S. make awards whenever the injury occurred because the employment required the claimant to occupy what turned out to be a place of danger. A few frankly state that causal connection is sufficiently established whenever it brings claimant to the position where he or she is injured.

 

In some states, unexplained falls and deaths occurring in the course of employment are generally held compensable, sometimes on the strength of a presumption, either judicial or statutory, that injury or death occurring in the course of employment also arises out of the employment in the absence of evidence to the contrary. For example, in Griego v. LaSalle, 2018 N.M. App. LEXIS 62 (Oct. 16, 2018), the New Mexico court, citing the Larson’s Treatise, held that a workers' compensation judge erred in denying a worker compensation under N.M. Stat. Ann. § 52-1-9 (1973) because, while the worker apparently tripped over his own foot, causing him to fall and injure his arm, the facts demonstrated that the worker's injury was the result of an unexplained fall, which constituted a neutral risk that gave rise to a rebuttable presumption that the injury arose out of the worker's employment, and the employer/insurer failed to rebut the presumption with evidence that the worker had any preexisting conditions or infirmities that caused or contributed to his fall—risks that were personal to him [see Larson’s Workers’ Compensation Law, Ch. 7, § 7.04[1][a] Digest n. 2].

 

Risks Personal to the Employee

 

Injuries arising out of risks or conditions personal to the claimant do not arise out of the employment unless the employment contributes to the risk or aggravates the injury. This core issue, discussed in Chapter 9 of the Larson Treatise, has also been updated. When the employee has a preexisting physical weakness or disease, this employment contribution may be found either in placing the employee in a position which aggravates the effects of a fall due to the idiopathic condition, or in precipitating the effects of the condition by strain or trauma. In one recent case, Bluml v. Dee Jay's Inc., 2018 Iowa Sup. LEXIS 101 (Nov. 16, 2018), in a divided decision, the Supreme Court of Iowa adopted the minority American rule that all work-related risk factors must be considered in determining the compensability of an idiopathic fall. Citing the Treatise, the court held that the hardness of the floor should be considered in a worker’s idiopathic fall to a level ceramic tile floor, depending upon the facts of the particular case. Accordingly, the majority of the Court reversed a decision of a state district court that (along with the deputy commissioner and the commissioner) had concluded, as a matter of law, that idiopathic falls onto level floors were not compensable [see Larson’s Workers’ Compensation Law, Ch. 9, § 9.01[4][e] n. 54].

 

Nature and Scope of the Exclusiveness Principle

 

At the utter core of workers’ compensation law is the principle that the compensation remedy is exclusive of all other remedies by the employee or the employee’s dependents against the employer and insurance carrier for the same injury, if the injury falls within the coverage formula of the act. This discussion, found in Chapter 100, has been updated and revised. Generally speaking, if it does not, the compensation act does not disturb any existing remedy. However, if the injury itself comes within the coverage formula, an action for damages is barred even although the particular element of damage is not compensated for, as in the case of disfigurement in some states, impotency, or pain and suffering. Some of the most interesting cases occur within this area of law. In Baiguen v. Harrah's Las Vegas, 426 P.3d 586 (Nev. 2018), for example, the Supreme Court of Nevada reversed a decision of the state’s court of appeals, holding that a Las Vegas casino employee could not maintain a civil action against his employer to recover damages for its alleged delay in seeking medical treatment following his suffering of a stroke just prior to the beginning of his work shift. His tort action was barred by the exclusive remedy provisions of the Nevada Industrial Insurance Act [see Larson’s Workers’ Compensation Law, Ch. 100, § 100.01[1] Digest n. 2].

 

For the equivalent of the Bible on U.S. work comp law, there is no better source than Tom Robinson or the Larson’s Treatise. I appreciate your thoughts and comments. Please post them on our award-winning blog.

Synopsis: Will a Graduated IL State Income Tax Cause Even Fewer IL WC Claims?

 

Editor’s comment: I am saddened to read our new Governor is committed to enacting a constitutional amendment for the purpose of imposing a graduated income tax. The top tax rate was announced at 7.95% which is comically high when one considers there are any number of states that have no income tax at all.

 

I want my readers to note IL WC claims continue to drop in number, jobs and businesses leave our state. At one point not so long ago, 75,000 new IL WC claims were being filed each year. Now, the IL WC Commission’s annual report confirms:

 

  • In Fiscal Year 2013   42,543 New IL WC Claims were filed

  • In Fiscal Year 2014   43,742 New Claims

  • In Fiscal Year 2015   42,758 New Claims

  • In Fiscal Year 2016   41,777 New Claims

  • In Fiscal Year 2017    39,840 New Claims

 

Notice a trend? No one in Springfield is talking about creating new opportunities for private industry or bringing in jobs—all we hear is how to make government bigger and more expensive while hitting Illinoisans with the highest combined tax burden in the entire country. We have skyrocketing real estate taxes, sales taxes and soon-to-be income taxes.

 

What is bad about high income taxes? Well, please note Chicago Cubs star hurler Jon Lester will be paying $1.6M in IL income taxes each year under the new Pritzker graduated income tax plan—If Lester would pitching for the Miami Marlins or the Tampa Bay Rays, he would make the same money and not pay any state income tax. What we are sure to see is star professional athletes seeing this math and not wanting to play for the Chicago Bears, Bulls, Blackhawks, Cubs and White Sox. Some folks say high taxes in Canada is a reason there hasn’t been a Canadian team to win a Stanley Cup in more than two decades!

 

What also galls me is the fact our Governor and Legislature are more than happy to amend the IL Constitution to raise these staggering new taxes without ever considering altering the Constitution to take out the “Pension Clause” that is the real reason our State government is broke—unfundable fake government pensions. As I have said many times in the past—they should enact a new constitutional amendment that ends the “something for nothing” aspect of fake government pensions and requires gov’t pensioners to receive NO MORE than

 

  • Their pension contributions during service,

  • Whatever the State matches during service and

  • Any investment income accrued at any time.

This simple concept would end the rip-off of taxpayers who work hard and shouldn’t have to pay for government pensioners to NOT work but still receive double, triple or quadruple what they made while actually working for us. If you aren’t sure current Governor Pritzker and the IL Legislature are again “kicking the can down the hill” in funding these fake pensions. This will insure your grandkids and great-grandkids and their great-great-grandkids will be paying off the spiraling fake gov’t pension debt.

 

In the interim, Illinois is certain to keep losing jobs and WC claims will continue to dwindle. I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

 

Synopsis: Rate The IL WC Arbitrators

Editor’s comment: Please find below the link to the IL WC Arbitrator Evaluation Survey. Arbitrators are to be rated only on the basis of personal knowledge. It is possible that you will not be able to rate all of the arbitrators or answer all of the questions for each arbitrator on the evaluation form.

If you have specific knowledge as to the qualifications of an arbitrator to give a fair, informed opinion as to those qualifications, please respond to the questions for that arbitrator by answering “Y” (Yes) or “N” (No) to the questions asked. If you have no opinion on a particular question, the question should not be answered and will be tabulated as a “No Opinion” response that will not affect the arbitrators rating. Specific instructions on form completion and submittal are available on the link.

If you do not have specific knowledge as to the qualifications of an arbitrator please skip that arbitrator and move on to the next arbitrator. Forms must be submitted to the Commission by April 22, 2019.

https://www2.illinois.gov/sites/iwcc/resources/Documents/2019ArbitratorEvaluationForm.pdf

 

Synopsis: Join KCB&A with the IL State Chamber for the IL WC Workshop on April 2, 2019 in Naperville. The link to register is: http://events.constantcontact.com/register/event?llr=omjkt4dab&oeidk=a07eg2i2618bf7c6629

 

3-4-2019; Alert!!! Open Up the Floodgates with Shocking New Statutory Exposure That is a Certain Business-Killer for Illinois; "Must Read" IL Appellate Ruling on Maintenance and Wage Loss Claims

Synopsis: Open up the Floodgates! And Now the Town is Gone… Illinois Legislature Proposes a Statutory Exception to the IL Workers Compensation Act With Uncapped Liability for “Latent Injuries.” Analysis by Bradley J. Smith, J.D. and Eugene F. Keefe, J.D.

 

Editor's Comment: Please note our nutty State is in a very odd political situation—we are a “one-party State.” In short, there is literally nothing the Republicans in Springfield can do other than to let the voters know what is happening and then see if public opinion will sway the dominant Democratic party. IL Democrats have super-majorities in both the IL Senate and House and our Governor is also Democrat.

 

We learned both Houses of the Illinois legislature recently proposed two identical bills in the House and Senate: House Bill 2479 and Senate Bill 1596. This unprecedented and unneeded prospective legislation amends the IL Workers’ Compensation Act and the Workers’ Occupational Diseases Act to allow employees to directly sue their employers in civil proceedings for a latent injury. In effect, this shocking IL WC Act amendment subjects Illinois employers to unlimited liability in tort for their employees’ “latent injury” claims. It may also happen in a fashion that may render Illinois employers uninsured for potentially thousands of expensive and unpredictable claims. In Gene’s view, this legislation is being quietly driven by ITLA or the Illinois Trial Lawyers Ass’n who may make zillions in new fees while destroying jobs and the Illinois marketplace.

 

Yes, You Heard Us Right—There Will Be No Insurance for Billions of Dollars in Old and New Unprecedented IL Workplace Exposures

 

As veteran defense lawyers, we want our readers to know this legislation, if passed, almost certainly will unwittingly strip Illinois employers of any insurance coverage for these types of massive claims due to common CGL policy and workers’ compensation policy exclusions. One of the bills is being called to a Senate Judiciary Committee hearing tomorrow, Tuesday, March 5, 2019.

 

Why does this matter to all of our readers in the insurance, claims and other related industries? Well… This legislation, if it becomes law, could effectively bankrupt your business quickly or over time. In our view, it makes absolutely no sense to push this legislative agenda in Illinois, unless the goal is removing all manufacturing and other businesses from the state—we hope that cannot be the goal of Illinois Democrats. Foresight is like hindsight, but proper foresight matters in pushing individual legislative agendas against IL employers. That’s because ultimately there needs to be money to defend, manage and pay these types of claims. That money either comes from IL employers or from their insurance carriers. If the employer goes broke in paying likely expensive “latent injuries,” then there will be no money left for Claimants.

 

The Proposed Amendment Ignores and Strips Away the Logic of the Exclusive Remedy Provision of the Illinois Work Comp Act and the Workers OccDisease Act.

 

As currently written, these WC/OD Acts impose liability without fault upon employers and, in return, prohibit expensive and explosive common law suits by employees against their employers. The exclusive remedy provision was part of both Acts’ “grand bargain” of the sacrifices and gains of employees and employers. In effect, employers assumed no fault liability to their employees, while being relieved of the prospect of large and unpredictable damage verdicts.

 

Perhaps the Illinois legislature and the newly minted Governor believe that where there’s a will, there’s a way. In other words, they may believe insurance companies will adjust and provide endorsements for these types of claims. However, those types of endorsements will be enormously cost prohibitive—if insurance companies will even offer them. The reason is that such claims likely will result in severe injuries and deaths, especially in asbestos exposure (and ultimately the development of mesothelioma) or other similar types of “latent injuries.”

 

Additionally, these types of claims can be difficult to defend given the timing of them—they present symptoms and damages decades after exposures. And then there’s difficulty of locating the particular culprit that might have caused the disease or deleterious condition. Years and years of experts have developed theories, such as the “single exposure” theory. The theory means one single exposure to a “latent injury” pathogen or other mechanism can proximately cause the disease.

 

Make no mistake, these types of legislative exposures are an affront to keeping Illinois manufacturing, construction, health care and other types of major businesses in Illinois. 

 

What’s a latent injury? ‘Latent’ is defined in Merriam-Webster’s as present and capable of emerging or developing but not now visible, obvious, active or symptomatic. Okay! It should be easy to determine what employers now face if this bill passes, right? Wrong! Some of the potential types of exposures and other injuries that are latent would be:

 

  • Chemical Sensitivity;

  • Asbestos

  • Radiation;

  • Pesticides;

  • Solvents;

  • Electromagnetic Fields Antidepressant Drugs Ephedra and PPA;

  • Blood Products (HIV/Hepatitis) Diethylstilbestrom;

  • Toxic Playgrounds;

  • Muscoskelital (lower back pain);

  • Allergies;

  • Skin Cancer;

  • Obesity;

  • Gun Liability;

  • GM Foods;

  • Long term hearing loss from work noise-industrial deafness;

  • Silicone exposure;

  • Lead paint exposure;

  • Acoustic shock; or

  • Repetitive trauma claims.

 

There are many other possibilities, but these are some of the major areas we would expect to be contemplated by the legislative acolytes at the Illinois Trial Lawyers Association.

 

House Bill 2479 and Senate Bill 1596 amend the IL Workers’ Compensation Act and the Workers’ Occupational Diseases Act. They provide specified current Sections limiting recovery do not apply to injuries or death resulting from an occupational disease as to which the recovery of compensation benefits under the Act would be precluded due to the operation of any period of repose or repose provision. It also provides that, as to any such injury or occupational disease, the employee, the employee's heirs, and any person having the standing under law to bring a civil action at law has the nonwaivable right to bring such an action in Circuit Court against any employer or employers. 

 

If the latent injury discussion remained in the workers’ compensation arena, then perhaps this would not be as big of a deal. This is where this type of claim against employers should properly be. Nonetheless, that is not what this new legislation mandates. Instead, it’s another attempt by the Illinois Trial Lawyers Association to circumvent the IL Workers’ Compensation Act to keep having Plaintiff lawyers get richer and richer. Ultimately, this will not protect individuals, because the money will dry up quickly. And if there’s no way to pay claims, then there’s no money for injured persons that truly need it.

 

This type of legislation not only would force Illinois businesses out but would eventually kill those businesses by whatever prior connection they had to Illinois from decades past. This will likely lead to business dissolutions and/or bankruptcies.

 

Perhaps an alternative the legislature could debate would be extending the twenty-five-year repose period under the Acts. Because not being insured is not good for employees either. And if this legislation is passed and signed by the Governor, then say bye to insurance for latent injuries to employees. Instead, employers will come to find they have no coverage for a latent injury suit by an employee, which could potentially rise to the level of a wrongful death claim—meaning multi-million-dollar judgments. Ultimately, these bills do not even aid in injured workers viable recoveries, which completely defeats their purpose.

 

We’ll continue to apprise our readers of the progress of these short-sighted bills. 

 

The research and writing of this article was performed by Bradley J. Smith, J.D. and Eugene F. Keefe, J.D. Bradley can be reached with any questions regarding employment law and commercial general liability defense at bsmith@keefe-law.com.

 

 

Synopsis: Claimant Loses Claim for Wage Loss Due to Non-Cooperation with Voc and No Self-Directed Job Search. This Ruling is a “Must-Read” for IL WC Attorneys on Both Sides.

Editor’s comment: I feel this is a solid and fair Appellate Court decision clearly defining the evidence needed to support a claim for “maintenance” benefits and when Claimants can seek IL WC wage loss benefits.

 

In Euclid Beverage v. Illinois Workers' Compensation Comm'n, (Issued February 25, 2019), our IL WC Appellate Court denied wage loss benefits to an injured beverage distributor whom it ruled did not seek job rehabilitation services in light of diminished abilities following a back injury that aggravated his degenerative condition.

 

Claimant was working in the beverage distribution business for over 30 years and for Respondent Euclid Beverage LLC at the time he injured his back stocking a cooler at a grocery store in 2011. This injury that led to multiple doctors diagnosing and treating him for an injury aggravated a condition common with age. In 2011 Respondent initially terminated his employment because he could not be accommodated even with light duty. Three months later, a manager at Respondent offered him a position in the warehouse, managing people and not lifting anything. Claimant declined to interview for the job, which the hiring manager later testified did not rely on lifting or other physical work—it was purely management.

 

Two months later, in 2012, a doctor released Claimant to work with restrictions: not lifting more than 15 pounds and alternating between sitting and standing. Petitioner subsequently filed for WC benefits, which the employer accepted as compensable.

 

The Arbitrator heard the facts and found him eligible for temporary total disability from 2011 to 2012, “maintenance” benefits from 2012 to 2015, intending to help supplement his income while he arguably sought employment or training, and wage loss benefits of $434 per week from 2015 for “the duration of his disability.”

 

Respondent filed a review before IL Work Comp Commission, which adopted the Arbitrator’s award in part providing a temporary total disability credit of $713 per week for 22 weeks and then maintenance of $714 for 167 weeks but cut the wage loss award to a “percentage of person as a whole award,” limited to $643 per week for 200 weeks equaling 40% loss of the body as a whole.

 

In 2017, Euclid appealed to the DuPage County Circuit Court, which affirmed the TTD and PPD disability benefits ruling but overturned the award for 167 weeks of maintenance benefits, “finding that the record did not demonstrate that the claimant participated in a vocational rehabilitation program or (a) self-directed job search” between 2012 and 2015. Claimant appealed.

 

The IL Appellate Court ruling generally followed the reasoning of the Circuit Court judge, ruling IL WC law mandates an employer must pay maintenance benefits if an injured worker was or is enrolled in a vocational rehabilitation program.

 

“The claimant never sought or gained employment following termination from Euclid,” the ruling states. “As such, rehabilitation would be neither mandatory nor appropriate because the claimant did not show an intention to return to work, although he was capable.”

The Appellate Court noted the Circuit Court properly set aside the IL WC Commission's decision to award maintenance benefits, finding the record did not show Claimant participated in a vocational rehabilitation program or self-directed job search over a 3-year period, and confirming the Commission's decision to award permanent partial disability (PPD) benefits as a percentage of the person as a whole. Claimant did not show an intention to return to work, although he was capable, and he did not enroll in a vocational rehabilitation program or engage in a job search after his termination. In short, Claimant did not prove a reduction in his earning capacity after his termination.

 

We appreciate your thoughts and comments. Please post them on our award-winning blog. If you want the link to the Appellate Court’s ruling, send a reply.

2-25-2019; Ooops, They Did It Again--Must Read on New IL PPD Max by Shawn Biery; Must Read Ruling on WC Subro by Matt Ignoffo and more

Synopsis: OOPS, THEY DID IT AGAIN…….MAX RATE FOR PPD LOWERED AGAIN MIDSTREAM!!!  The initial posted Max PPD rate has been adjusted down—still need to UPDATE RETROACTIVELY(!).

 

To any of our readers and/or fans, Send a Reply to Marissa mpatel@keefe-law.com to Get a Free Copy of Shawn R. Biery’s Updated IL WC Rate-Sheet!

 

Editor’s comment: There continue to be changes, with the current IL PPD max now listed on the IWCC website adjusted down $13 from initially posted. Please don’t shoot the messenger for telling you that they updated it before the new car smell is off the freshly laminated Rate Chart you just received.

 

As mentioned before, twice every year, starting in the 1980’s, the IL WC Act provides a formula which effectively insures no matter how poor the IL economy is doing, your IL WC rates keep climbing.

 

We caution our readers to pay attention to the fact the IL WC statutory maximum PPD rate is now $813.87 (still up from $790.64—but now only a $23 increase instead of $36—when the last increase was only $15!!!).

 

When it was published, this PPD Max rate changed retroactively from July 1, 2018 to present. If you reserved a claim based on the prior rate for the period from July 1 to right now, your reserves are wrong.

 

If you have a claim with a date of loss after July 2017 and a max PPD rate, you need to take a look and see if the new maximum PPD rate applies and reset reserves.

 

To recap the other changes from January 2019:

 

  • The current TTD weekly maximum has risen to $1,506.81.

 

  • An IL worker has to make over $2,260.22 per week or $117,531.18 per year to hit the new IL WC maximum TTD rate.

 

  • The new IL WC minimum death or T&P rate also went up.

 

  • The IL WC minimum death benefit is 25 years of compensation or $565.06 per week x 52 weeks in a year x 25 years equaling a staggering $734,578.00! Yes, if Claimant makes $100 a week in a part-time job and dies in a work-related accident, the benefit is over $734K.

 

  • The new maximum IL WC death benefit is $1,506.81 times 52 weeks times 25 years or a lofty $1,958,853.00 plus burial benefits of $8K.

 

On top of this massive benefit, Illinois employers/governments have to contribute to a fund to pay COLA increases under the Rate Adjustment Fund that may double that already-high benefit, depending on the CPI.

 

The best way to make sense of all of this is to get Shawn Biery’s colorful, updated and easy-to-understand IL WC Rate Sheet.

 

If you want it, simply email Marissa at mpatel@keefe-law.com and include your mailing address if you would like to be mailed a laminated copy & you can also copy Shawn at sbiery@keefe-law.com with any questions, and his great team will get a copy routed to you before rates rise again.

 

Shawn remains your go-to defense source on any issue relating to IL WC rates!

 

Synopsis: New Subro Opinion from the IL Appellate Court – Employer Cannot Recover in Subro for the Full Car Accident Settlement Amount Without Establishing Payment Connection. Research and writing by Matt Ignoffo, J.D., M.S.C.C.

 

Editor’s Comment: The facts of Hunt v. Herrod (City of Peoria Intervenor) involve two claimed back injuries by a police officer. 2019 IL App (3d) 170808, opinion filed February 15, 2019.

 

On September 27, 2009, Plaintiff Hunt was rear-ended by defendant Herrod while Hunt was working as a Peoria police officer for the City of Peoria. Hunt injured his back in the accident, sought medical treatment, and participated in physical therapy. He was released to full-duty work on December 3, 2009 and returned to work. On January 25, 2010, Hunt participated in training exercises, and later during the evening he experienced back pain and sought medical care. He had emergency surgery on January 29, 2010 and the outcome was not positive.

Hunt filed a WC claim for the training incident of January 2010 but did not initially file a claim for the September 2009 car accident.

 

Hunt filed a personal injury action against Herod, and Peoria intervened asserting a $125,899.50 lien on any recovery, which ended up being a $75,000.00 settlement for the car accident.

 

Payment logs from Peoria’s third-party administrator allocated payments of $5,325.36 to the September 2009 claim and $119,880.13 to the January 2010 claim. Evidence at the hearing on Hunt’s Motion to Adjudicate the Lien revealed Peoria accepted the September 2009 but did not authorize any payments for the January 2010 claim as Peoria did not believe there was an injury. There was testimony Peoria authorized payments for the September 2009 accident in the amount of $125,899.50.

 

The trial court initially found Peoria had a $125,899.50 lien and that a “portion of expense should be allocated to the accident as an aggravating factor to what is a chronic, pre-existing back injury.” The court determined that Peoria was entitled to 10% of its lien amount, or $12,589.95. Peoria moved for reconsideration and argued there were no facts to support the trial court’s allocation of funds based on aggravation of a preexisting injury. Hunt argued the lien should be adjudicated to $5,325.36, the amount documented as paid for the September 2009 injury.

 

The trial court entered an order granting reconsideration. It found because Peoria continued to pay workers’ compensation benefits to Hunt after he returned to work in December 2009, Peoria was entitled as a matter of law to the entire $75,000.00 settlement amount to satisfy its lien. Hunt appealed.

 

The main issue this article comments on is whether the trial court erred in finding Peoria was entitled to the entire $75,000.00 settlement to satisfy its lien. The Appellate Court, Third District cited the IL WC Act and case law:

 

  • When some person other than an employer caused the injury and is legally liable for damages and the employee reaches a settlement with the third party, the employer is entitled to amounts paid out for the employee under the Act and a lien on the employee’s recovery. 820 ILCS 305/5(b).

  • Employers are provided a right under section 5(b) to recover amounts paid for workers’ compensation where the employee settles with the third-party tortfeasor, “regardless of whether a lien has been asserted.” Scott v. Industrial Comm’n.

  • An employer is not required to bring an action to protect its lien. Hartford Accident & Indemnity Co. v. D.F. Bast, Inc.

The Appellate Court held both the original and reconsideration trial court decisions were incorrect. It noted Peoria did not present any evidence which connected the payments made for the training injury to the car accident settlement. Hunt was cleared to return to work after the September 2009 car accident. Merely because Peoria denied WC benefits for the second claim, did not establish the second injury was connected to the car accident.

 

The Appellate Court held that Peoria must establish the payments it made were connected to the injury for which the employee recovered from the third party. As such, the Trial Court erred in holding Peoria was entitled to the entire settlement without establishing a nexus between the payments it made and the claim for which the settlement was paid.

 

The case was remanded for Peoria to be allowed to show what it paid out for the car accident claim, which would have ended when Hunt was cleared to return to full duty in December 2009. Peoria cannot argue it is entitled to the settlement proceeds for payments made for the training injury. This makes sense because the training injury had nothing to do with the car accident and third-party case settlement.

 

The confusion appears to have stemmed from the fact Peoria apparently denied the training accident claim, but at the same time paid $119,880.13 on that case. It then sought to recoup this amount against the earlier claim, the car accident, but Peoria did not establish the benefits paid were connected to the car accident claim. Again, Hunt returned to full duty work between the two alleged dates of loss.

 

What would have been interesting is how the lien would have been adjudicated if Hunt did not return to work and there was no second claim, with Peoria paying $125,899.50 for the car accident case. Under such circumstances there is no way to predict what the car accident case settlement amount would have been, but if less than what Peoria had paid, we can see Hunt’s entire car accident settlement going to Peoria.

 

This article was researched and written by Matthew Ignoffo, J.D., M.S.C.C., who practices in Illinois and Wisconsin. Please feel free to contact Matt at mignoffo@keefe-law.com.

 

 

Synopsis: New Indiana WC Single Hearing Member (Judge) Takes Office, and New Drug Formulary now in Effect – Are you ready? Article and analysis by our IN WC Defense Team Leader, Kevin Boyle, J.D.

Editor’s comment: I previously reported changes at the end of 2018 for two new IN judges. The last position has now been filled. This week Sandra O’Brien officially takes over for SHM Gerald Ediger in District 1 which covers the Northwest Region. Ms. O’Brien has practiced  for over 20 years in the Region as a plaintiff’s attorney in civil and IN worker’s compensation cases.

I have prior experience with Ms. O’Brien, and if you have any questions, please contact me. I look forward to working with Ms. O’Brien in the near future. If you look at the map to the left, Ms. O’Brien will handle the counties marked in bright green.

Synopsis: IWCB Drug Formulary Training Seminars Available for the new Indiana drug prescription rules and processes. Article and analysis by our IN WC Defense Team Leader, Kevin Boyle, J.D.

Editor’s comment: I previously reported that the new Indiana Formulary rules went into effect on January 1, 2019.  The IWCB is still providing training seminars to help you understand the complicated process. To recap, I.C. 22-3-3-4.7 and I.C. 22-3-7-17.6 were added to help standardize the approval of “non-preferred” or “N” drugs for employees who filed a notice of injury. After January 1, 2019, if a doctor prescribes an “N” drug, there are now detailed steps to take to approve that “N” drug or try to UR it for a denial. URs are always a tricky step for Indiana worker’s compensation cases. So far, it’s unclear yet how this new statutory change will be followed by our judges, but the steps need to be taken for now, especially if you are denying prescriptions. Call or email me if any questions.

As always, if you have questions, concerns or just want to reasonably and rapidly close your IN WC claims, no one is faster and better than Kevin Boyle. He can be reached 24/7 at kboyle@keefe-law.com

Thanks.

 

Kevin Boyle, Esq., Keefe, Campbell, Biery & Assocs., LLC, 118 N. Clinton St., Suite 300, Chicago, IL 60661, 312.756.1800

and

885 South College Mall Rd. #222, Bloomington, IN 47401, Direct: 312.662.9899, Alternate: 812.369.7182

Email:  kboyle@keefe-law.com,  Attorney - Bio

 

Synopsis: Join KCB&A with the IL State Chamber for the IL WC Workshop on April 2, 2019 in Naperville. The link to register is: http://events.constantcontact.com/register/event?llr=omjkt4dab&oeidk=a07eg2i2618bf7c6629