NJ Senate to Vote on S613 - Workers Compensation Cost of Living Benefit Increase

On Thursday, January 9, 2014, the NJ Senate is scheduled to vote on S613, which is proposed legislation to increase workers' compensation benefits by implementing a cost of living allowance for some beneficiaries.
On December 19, 2013 the following amendments were adopted by the NJ Senate:
These Senate amendments provide:
1. That the periodic cost of living supplement that the bill
provides to an individual for total permanent disability or survivor’s
benefits under workers’ compensation will be reduced by the original
amount of that individual’s periodic Social Security survivor’s or
retirement benefits, but not reduced by subsequent cost of living
increases in those Social Security benefits; and
2. That, in the case of an individual who initially received Social
Security disability benefits and later receives Social Security
retirement benefits, or who dies and has dependents who receive
Social Security survivors’ benefits, the workers’ compensation
supplement will then be reduced by the amount of the Social Security
retirement or survivor benefits, exclusive of any cost of living increase
in those Social Security retirement or survivor benefits
S613:
1/9/2014 1:00:00 PM Senate
1000 AM  Committees at the Call of the Senate President
200 PM  Voting Session
Senate Chambers

http://www.njleg.state.nj.us/bills/BillView.asp?BillNumber=S613

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NJ COLA Bill is passed by the State Senate

Identical Bill Number: A4514     Last Session Bill Number: S935    Sweeney, Stephen M.   as Primary Sponsor Madden, Fred H., Jr.   as Primary Sponsor Beach, James   as Co-Sponsor Norcross, Donald   as Co-Sponsor Greenstein, Linda R.   as Co-Sponsor Weinberg, Loretta   as Co-Sponsor Vitale, Joseph F.   as Co-Sponsor
1/10/2012 Introduced in the Senate, Referred to Senate Labor Committee 5/17/2012 Reported from Senate Committee with Amendments, 2nd Reading 5/17/2012 Referred to Senate Budget and Appropriations Committee 12/5/2013 Reported from Senate Committee with Amendments, 2nd Reading 12/19/2013 Senate Amendment (26-1) (Sweeney) 1/9/2014 Passed by the Senate (23-14) 1/9/2014 Received in the Assembly, Referred to Assembly Labor Committee

S613 ScaScaSa (3R) Concerns certain workers' compensation supplemental benefits. 
Labor 

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Missouri Further Defines Permanent Total Disability

"The PTD test is whether the worker can compete in the open labor market.
Schussler, 393 S.W.3d at 96. A worker who cannot return to any normal or
reasonable employment is totally disabled; she need not be inert or completely
inactive. Id. “The key question is whether any employer in the ordinary course of
business would reasonably be expected to hire the worker in his or her current
physical condition.” Id. "

 MARLENE STEWART, Respondent vs. CLINT ZWIEFEL, TREASURER OF THE STATE OF MISSOURI AS CUSTODIAN OF THE SECOND INJURY FUND, Appellant
No. SD32827 )  FILED: February 10, 2014 

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NJ COLA Bill - Legislative Hearing Scheduled

The NJ Senate Budget and Appropriations Committee will hold a public hearing on a pending COLA bill S613 to increase benefits on 12/5/2013 1:00:00 PM.

The Senate Labor Committee report

The Senate Labor Committee reports favorably and with

committee amendments Senate Bill No. 613.

As amended by the committee, this bill provides, from July 1, 2013

forward, an annual cost of living adjustment (COLA) in the weekly

workers' compensation benefit rate for any worker who has become

totally and permanently disabled from a workplace injury at any time

after December 31, 1979 and for the surviving dependents of any

worker who died from a workplace injury after December 31, 1979.

The COLA would be an amount such that, when added to the

workers' compensation weekly benefit rate initially awarded, the sum

will bear the same percentage relationship to the maximum benefit rate

at the time of the adjustment that the initial rate bore to the maximum

rate at the time of the initial award, except that:

1. The bill reduces the amount of the adjustment as much as

necessary to ensure that the sum of the adjustment and the amount

initially awarded does not exceed the amount which would cause any

reduction of disability benefits payable under the Federal Old Age,

Survivors and Disability Act; and

2. The bill reduces the supplemental workers’ compensation

benefits (but not regular workers’ compensation) for claimants injured

after 1979 by the amount of any Social Security benefits (other than

Social Security disability benefits and any increases in Social Security

benefits due to federal statutory changes after May 31, 1980), Black

Lung benefits, or the employer’s share of disability pension payments

received from or on account of an employer, except that if the worker's

original workers' compensation award was already reduced under

current law, there would be no further reduction of the supplemental

benefits under the bill.

These reductions parallel the reductions provided under current

law for claimants who were injured before 1980. The bill also

provides that no supplemental benefits would be paid in any case

where they are calculated to be less than $5 per week.

Current law requires such annual adjustments in the rate of

workers' compensation benefits for death and permanent total

disability to be paid from the Second Injury Fund (SIF), but only for

cases of injury or death occurring before January 1, 1980. The bill

extends the adjustments paid from the SIF to claims originating after

December 31, 1979, although the adjustments would apply only to

benefits paid on those claims after July 1, 2013, thus avoiding a

backlog of retroactive benefits.

The bill provides that supplemental payments will commence only

after SIF assessments are sufficient to pay them without using General

Fund money. The supplemental benefit payments would start on July

1, 2013 and the Department of Labor and Workforce Development is

required to take into account the supplemental benefits when

calculating the amount of the Second Injury Fund assessment which

starts on January 1, 2013, thus avoiding the need for any General Fund

appropriation.

To avoid an abrupt fiscal impact on the workers’ compensation

system, the bill provides that one third of the supplemental benefit rate

be paid during the first year, two thirds of the rate be paid during the

second year and the full amount be paid during the third and

subsequent years.

The bill sets time limits for workers’ compensation insurers and

self-insured employers to notify the SIF when supplemental workers’

compensation benefits are required under the bill. An insurer or selfinsured

employer is required to provide the notice not more than 60

days after the supplement is awarded or voluntary payment is to begin.

If a failure to notify results in the payment of an incorrect amount of

benefits, the liability for the payment of the supplemental benefits is

transferred from the SIF to the insurer or employer until the required

notice is provided.

The bill makes no change in the provisions of sections 1 and 9 of

P.L.1980, c.83 (C.34:15-95.4 and 34:15-95.5), which provide for the

reduction of certain portions of workers' compensation benefits by the

amount of Social Security disability benefits paid. In addition, the bill

expressly states that the supplemental benefits shall not be paid in a

manner which in any way changes or modifies the provisions of those

sections. The bill, therefore, will have no effect on existing provisions

of State and federal law regarding offsets between workers'

compensation and federal Social Security disability benefits.

The committee amendments provide that the application of the cost

of living adjustment commence on July 1, 2013, instead of July 1,

2011.

This bill was pre-filed for introduction in the 2012-2013 session

pending technical review. As reported, the bill includes the changes

required by technical review, which has been performed.

….

Jon L. Gelman of Wayne NJ is the author NJ Workers’ Compensation Law (West-Thompson) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thompson). For over 4 decades the Law Offices of Jon L Gelman  1.973.696.7900  jon@gelmans.com  have been representing injured workers and their families who have suffered occupational accidents and illnesses.

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Massachusettes Senator Seeks to Double Payment for Workers Killed on the Job

Following the deaths of two workers last month at Boston construction and shipping sites, Senator Brian A. Joyce and the Massachusetts Coalition for Occupational Safety and Health (MassCOSH) are renewing their calls for passage of Joyce’s Bill, "The Families of Fallen Workers Burial Act," which would double the benefit amount paid by workers’ compensation when a loved one is killed at work. “The amount paid out to grieving families has remained stagnant for decades while the cost of a burial has risen steadily,” said Joyce. “These families are going through enough already without the additional stress of coming up with thousands of dollars to put their loved ones to rest.” According to the 2010 funeral price survey by the National Funeral Directors Association, the average funeral cost for an adult funeral is $7,775. With cemetery plot, grave marker, flowers or obituary notices, the “regular adult funeral” cost is at least $9,000. Joyce’s bill would increase the benefits allotment from $4,000 to roughly $8,000 (eight times the average weekly wage in the Commonwealth) and tie future increases to inflation. “The Families of Fallen Workers Burial Act will ensure that no family has to shoulder the financial burden of a burial,” said MassCOSH Executive Director Marcy Goldstein-Gelb. “The increase adds up to very little for the workers’ compensation insurance system and will mean a huge difference...

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NJ Supplemental Benefits Bill Goes to The Governor

Identical Bill Number: A1908    (2R) Last Session Bill Number: A4514   S613 (1R)  Sweeney, Stephen M.   as Primary Sponsor Madden, Fred H., Jr.   as Primary Sponsor Burzichelli, John J.   as Primary Sponsor Riley, Celeste M.   as Primary Sponsor Moriarty, Paul D.   as Primary Sponsor
1/16/2014 Introduced in the Senate, Referred to Senate Labor Committee 3/17/2014 Reported from Senate Committee, 2nd Reading 3/17/2014 Referred to Senate Budget and Appropriations Committee 6/5/2014 Reported from Senate Committee, 2nd Reading 6/12/2014 Passed by the Senate (21-15) 6/12/2014 Received in the Assembly, Referred to Assembly Labor Committee 10/27/2014 Reported and Referred to Assembly Appropriations Committee 3/16/2015 Reported out of Assembly Comm. with Amendments, 2nd Reading 6/25/2015 Substituted for A1908 (2R) 6/25/2015 Passed by the Assembly (43-31-2) 6/25/2015 Received in the Senate, 2nd Reading on Concurrence 9/24/2015 Passed Senate (Passed Both Houses) (24-12) Introduced - 5 pages PDF Format    HTML Format  Statement - SLA 3/17/14 - 3 pages PDF Format    HTML Format  Fiscal Estimate - 3/26/14; as introduced - 8 pages PDF Format    HTML Format  Statement - SBA 6/5/14 - 4 pages PDF Format    HTML Format  Statement - ALA 10/27/14 - 4 pages PDF Format    HTML Format  Statement - AAP 3/16/2015 - 3 pages PDF Format    HTML Format  Fiscal Estimate - 4/8/15; 1R - 8 pages PDF Format    HTML Format  Reprint - 3 pages PDF Format    HTML Format  Committee Voting: SLA  3/17/2014  -  r/favorably  -  Yes {3}  No {1}  Not Voting {0}  Abstains {1}  -  Roll Call SBA  6/5/2014  -  r/favorably  -  Yes {8}  No {2}  Not Voting {2}  Abstains {1}  -  Roll Call ALA  10/27/2014  -  r/favorably  -  Yes {6}  No {2}  Not Voting {0}  Abstains {1}  -  Roll Call AAP  3/16/2015  -  r/Aca  -  Yes {6}  No {1}  Not Voting {1}  Abstains {1}  -  Roll Call Session Voting: Sen.    6/12/2014  -  3RDG FINAL PASSAGE   -  Yes {21}  No {15}  Not Voting {4}    -  Roll Call Asm.  6/25/2015  -  SUBSTITUTE FOR A1908 Aca   -  Yes {0}  No {0}  Not Voting {80}  Abstains {0}  -  Voice Vote Passed Asm.  6/25/2015  -  3RDG FINAL PASSAGE   -  Yes {43}  No {31}  Not Voting {4}  Abstains {2}  -  Roll Call

NJ State Bar Association Opposes Workers' Compensation COLA Bill

"The New Jersey State Bar Association respectfully has concerns with S-929 (Sweeney) which concerns certain workers' compensation supplemental benefits. The New Jersey State Bar Association opposes this legislation in order to preserve the “Reverse Offset” provision in New Jersey, visa vie Social Security, which provides for a reduction of the workers' compensation benefit of a worker also receiving disability insurance. Enacting this legislation has the potential of harming the economic integrity of New Jersey’s current cost effective system by allowing for a double recovery of disability benefits and workers’ compensation benefits, which will in turn increase the cost of doing business in New Jersey. A potential alternative that would limit these adverse consequences would be to limit the application of the bill to survivor/death benefits. For the reasons set for above, the New Jersey State Bar Association respectfully opposes this bill."

Former Texas Workers' Compensation Director Pleads Guilty to $500,000 Fraud

Former Texas Association Of School Boards (TASB) Workers Compensation Claims Administration Director Pleads Guilty To Mail Fraud Charges

In Austin today, Herman G. Wilks, former Department Director of Workers’ Compensation Claims Administration for the Texas Association of School Boards, Inc. (TASB), pleaded guilty to stealing over $500,000 from the TASB’s Risk Management Fund announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division.

The TASB is a voluntary, non-profit, statewide educational association that serves and represents local Texas school districts, regional education service centers, community colleges, and tax appraisal districts. One of the products and services offered by TASB to its members is the TASB Risk Management Fund. The TASB Risk Management Fund provides specific coverage to members through their requisite financial contributions into the risk management pool. This coverage can then apply with regard to unemployment compensation claims, workers' compensation claims, auto, liability and property programs. Wilks’ TASB duties included the supervision of setting up member school districts' workers' compensation claims, adjudicating medical bills and carrying out the utilization, management and pre-authorization functions required by the workers' compensation statutes. Pursuant to his title and area of responsibility at TASB, Wilks had control over and direct access to the entire claimant pay process by which TASB accepted and paid workers' compensation claims for its contributing members by way of the TASB Risk Management Fund.

Appearing before U.S. District Judge Sam Sparks this morning, Wilks pleaded guilty to ten counts of mail fraud. By pleading guilty, Wilks admitted that from April 2008 until March 2013, he unlawfully obtained approximately $514,400 from TASB via the TASB Risk Management Fund by submitting fraudulent workers’ compensation claims on behalf of Medco Implantable Supply, a company he created for the sole purpose of carrying out his fraudulent scheme, for products and services that were never actually ordered, provided or rendered.

“Like many defendants, Mr. Wilks undoubtedly concocted his scheme of setting up a dummy company to steal hundreds of thousands of dollars from the TASB Risk Management Fund with full confidence that he would get away with it. This prosecution should remind would-be thieves like Mr. Wilks that their schemes will be discovered and they will lose not only their ill-gotten gain, but their livelihoods, reputations and quite likely their freedom as a result,” stated U.S. Attorney Pitman.

Wilks faces up to 20 years in federal prison per count. He is currently out on bond pending sentencing which has yet to be scheduled.

This indictment resulted from an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney Ashley Hoff is prosecuting this case on behalf of the Government

.

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NJ Governor Chris Christie Vetoes Supplemental Benefit Bill

SENATE BILL NO. 929

(First Reprint)

To the Senate:

Pursuant to Article V, Section I, Paragraph 14 of the New

Jersey Constitution, I am returning Senate Bill No. 929 (First

Reprint) without my approval.




Workers’ compensation is an important program in New

Jersey, providing compensation to employees who suffer job related

injuries or illnesses through no fault of their own. It

is especially significant to families who receive benefits after

a loved one has died in the line of duty.




In 1979, the State made comprehensive changes to the

workers’ compensation law, resulting in higher payments for

workers totally and permanently disabled after December 31,

1979. The changes, however, created a disproportionate effect

on workers’ compensation payments made to those who sustained

total and permanent disability or death before the

implementation of those changes. In recognition of this

disparity, the Legislature established a cost-of-living

adjustment (“COLA”) for those injured on or before December 31,

1979 to align their payments with those injured after the new

reforms.




This well-intended bill would extend the workers’

compensation COLA benefit to total disability beneficiaries and

those receiving survivors’ benefits where the injury occurred

after December 31, 1979. The estimated yearly cost for the COLA

is at least $58 million and would be funded solely through an

increase in the annual surcharge on private-sector employers

paid into the Second Injury Fund (“SIF”).




Employers in New Jersey already pay the third highest

workers’ compensation rates in the Nation. This bill would

further raise those rates, putting even more of a burden on

private sector businesses. I have worked tirelessly with my

Administration to maintain a business environment that fosters

the growth of private-sector jobs in the State, and we have been

successful. This bill represents a step in the wrong direction

because an increase in the annual SIF surcharge would threaten

the State’s ability to keep existing employers in the State and

undermine efforts to attract new ones. I cannot sign a bill that

will pile yet another unacceptable financial burden on the

businesses of this State.




Accordingly, I am returning Senate Bill No. 929 (First

Reprint) without my approval.

Respectfully,

[seal] /s/ Chris Christie

Governor

Attest:

/s/ Thomas P. Scrivo

Chief Counsel to the Governor




................

S929 Aca (1R) Concerns certain workers' compensation supplemental benefits.

Received by the Senate




Identical Bill Number: A1908 (2R)

Last Session Bill Number: A4514 S613 (1R)




Sweeney, Stephen M. as Primary Sponsor

Madden, Fred H., Jr. as Primary Sponsor

Burzichelli, John J. as Primary Sponsor

Riley, Celeste M. as Primary Sponsor

Moriarty, Paul D. as Primary Sponsor




1/16/2014 Introduced in the Senate, Referred to Senate Labor Committee

3/17/2014 Reported from Senate Committee, 2nd Reading

3/17/2014 Referred to Senate Budget and Appropriations Committee

6/5/2014 Reported from Senate Committee, 2nd Reading

6/12/2014 Passed by the Senate (21-15)

6/12/2014 Received in the Assembly, Referred to Assembly Labor Committee

10/27/2014 Reported and Referred to Assembly Appropriations Committee

3/16/2015 Reported out of Assembly Comm. with Amendments, 2nd Reading

6/25/2015 Substituted for A1908 (2R)

6/25/2015 Passed by the Assembly (43-31-2)

6/25/2015 Received in the Senate, 2nd Reading on Concurrence

9/24/2015 Passed Senate (Passed Both Houses) (24-12)

11/9/2015 Absolute Veto, Received in the Senate




Introduced - 5 pages PDF Format HTML Format

Statement - SLA 3/17/14 - 3 pages PDF Format HTML Format

Fiscal Estimate - 3/26/14; as introduced - 8 pages PDF Format HTML Format

Statement - SBA 6/5/14 - 4 pages PDF Format HTML Format

Statement - ALA 10/27/14 - 4 pages PDF Format HTML Format

Statement - AAP 3/16/2015 - 3 pages PDF Format HTML Format

Fiscal Estimate - 4/8/15; 1R - 8 pages PDF Format HTML Format

Reprint - 3 pages PDF Format HTML Format

Veto - Absolute veto - 2 pages PDF Format HTML Format

Committee Voting:

SLA 3/17/2014 - r/favorably - Yes {3} No {1} Not Voting {0} Abstains {1} - Roll Call

SBA 6/5/2014 - r/favorably - Yes {8} No {2} Not Voting {2} Abstains {1} - Roll Call

ALA 10/27/2014 - r/favorably - Yes {6} No {2} Not Voting {0} Abstains {1} - Roll Call

AAP 3/16/2015 - r/Aca - Yes {6} No {1} Not Voting {1} Abstains {1} - Roll Call




Session Voting:

Sen. 6/12/2014 - 3RDG FINAL PASSAGE - Yes {21} No {15} Not Voting {4} - Roll Call

Asm. 6/25/2015 - SUBSTITUTE FOR A1908 Aca - Yes {0} No {0} Not Voting {80} Abstains {0} - Voice Vote Passed

Asm. 6/25/2015 - 3RDG FINAL PASSAGE - Yes {43} No {31} Not Voting {4} Abstains {2} - Roll Call

Sen. 9/24/2015 - CONCUR ASMB AMEND - Yes {24} No {12} Not Voting {4} - Roll Call






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