The Workers' Compensation Nuclear Option: Detroit officially enters bankruptcy

The "nuclear option" for a workers' compensation claim is a public entity bankruptcy and Detroit got the Court's approval to go forward with the legal maneuver. Over the course of the last 3 decades, bankruptcy has become a common practice to shield private corporations from product liability claims. Asbestos claims have seen dozen of companies use this legal tactic to reduce payment to less that 5% on the dollar. As corporations struggle for life in this changing economy, workers are now experiencing the effects of bankruptcy ruling to reduce their benefits and break the promise made in 1911 for an efficient and cost effective benefit program. Today’s post is shared from deseretnews.com

Detroit is finally officially bankrupt, a federal bankruptcy judge certified on Tuesday. "It is indeed a momentous day," U.S. bankruptcy judge Steven Rhodes said at the end of a 90-minute summary of his ruling, USA Today reported. "We have here a judicial finding that this once-proud city cannot pay its debts. At the same time, it has an opportunity for a fresh start. I hope that everybody associated with the city will recognize that opportunity." Rhodes surprised some observers by saying he would support the city in shaving pension expenses, a key bone of contention. The ruling on pensions has significant implications for others cities elsewhere. In California, for example, cities such as San Bernardino could seize the precedent, the Sacramento Bee suggested. "But one...

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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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Kaiser Permanente, Unions Launch New Employee Wellness Program

Organized Labor is improving worker health by encouraging wellness program, a counterbalance to  the erosion of workers' compensation pre-existing disease limitations. Today's post was shared by votersinjuredatwork and comes from www.californiahealthline.org

Kaiser Permanente and the 29 unions that represent its employees in California and eight other regions have teamed up to offer incentive payments to groups of workers who improve their health, the Sacramento Bee reports. Details of Program Under the voluntary program, Kaiser's 133,000 workers could earn up to $500 each if participants in their region collectively: Lose weight; Lower blood pressure; Lower cholesterol; and Stop smoking. All employees -- even those who choose not to participate -- will be eligible for payouts if: 75% of workers in their region complete an online health survey, which would earn $150 incentive payments for all employees in that region; 85% of workers in their region update their baseline screenings for weight, smoking, cholesterol and blood pressure, which would earn $150 payments for all workers in that region; and There is an average 1.7% improvement and no declines across such measures by December 2014, which would earn $200 for all employees in that region. The program does not apply to doctors, dentists and executives, but it does include both union and non-union employees. Kaiser will issue all payouts in 2015. The total cost of the program could reach $66.5 million, according to the Bee. Comments From Kaiser Kathy Gerwig -- vice president of employee safety, health and wellness at Kaiser -- said the program is "very inclusive of everybody" and will "drive the culture toward healthier work environments and camaraderie around getting healthier." She...

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