Ohio Cleaners Association
articles - Display Record
Workers' Comp Reform Bill Labeled a 'Jobs Bill'  
Sen. Gary Cates (R-West Chester), giving sponsor testimony Tuesday, labeled his workers' compensation reform bill (SB7) a "Jobs Bill" and said, "The bill's focus should clearly be on how it will help spur Ohio's economy."

Cates said his bill includes two key provisions related to coverage. The bill reduces the statute of limitations for workers' compensation claims to four years. Under current law, claims can stay open for 10 years from the last date of payment. Medical-only claims have a statute of limitations of six years.

The bill, according to Cates, also prohibits an injured worker from seeking reimbursement under the federal "Energy Employees Occupational Illness Compensation Program Act of 2000" and workers' compensation.

The Energy Employees Occupational Illness Act was an admission by the federal government that certain workers in certain nuclear weapons plants had been exposed to radiation without their knowledge. The act allowed these workers to collect a one-time award of $150,000 and not give up their workers' compensation benefits.

However, the U.S. Department of Labor is expected to issue rules in May that will say workers' compensation payments will be considered an offset for purposes of the $150,000 award.

SB7 will force workers, such as those who qualify from the Piketon plant, to choose between workers' compensation and the federal one-time money.

The bill would also change the definition of injury for pre-existing conditions. The bill would require injured workers to demonstrate "substantial" aggravation of a pre-existing condition rather than mere aggravation in order to qualify for compensation. The definition of injury has at the same time been expanded to include trauma that results from being raped or sexually assaulted at the workplace.

The gap between the termination of temporary total disability (TTD) benefits and permanent partial disability (PPD) benefits is reduced. The bill would also reduce the number of weeks a claimant can collect "non-working wage loss". Under current law, benefits are available for up to 200 weeks. These benefits are provided when a worker has reached maximum medical improvement (MMI) and is unable to return to employment because there is no job available to accommodate the claimant's injury. Cates said, "This type of benefit is designed to be similar to unemployment compensation and thus the bill restructures the payments so that they mirror unemployment benefits."

Workers who have suffered traumatic brain injury would be able to work if they choose and still be able to collect PTD benefits.

The bill also would make permanent the "Fast Response Pilot Project" which allows the bureau to automatically adjudicate certain approved injuries. Employers would still have the right to appeal.

Needless to say, the trial lawyers have loaded their guns for this bill and a companion bill in the House (HB72-Buehrer).

The Ohio Academy of Trial Lawyers (OATL) sent a letter to legislators in which they claimed the bills would reduce benefits to injured workers and are totally unnecessary and without merit since Ohio's BWC is one of the best-run systems in the nation.

They point out that Ohio's premium rates are lower than the national average and holding stable. They also reminded legislators that SB45 which was enacted in 1997 to reform the workers' compensation system resulted in a referendum (Issue 2) which overturned the legislation.

The OATL said that since that defeat, BWC investments outperformed 87 percent of all public funds from 1997-2002. They also said that BWC has returned over $10 billion to employers in the form of dividends, rebates, credits and discounts. They congratulated the bureau for this cost saving to employers and for its workplace safety and back-to-work initiatives.

The forthcoming debates will find the usual suspects lining up to declare both for and against this newest attempt at workers' compensation reform.

More News