Investing for the Next Pandemic

Preparing for the next pandemic is an essential need for all employers, employees, and insurance companies.  The failure of the public health system to handle COVID-19 is evident as the death toll (675,400) fatalities) has now exceeded the 1918 Spanish Flu mortality rate.  The US CDC is encouraging preparation by announcing the opportunity for final investment. It is also incumbent upon the workers’ compensation industry to expand its efforts for pandemic preparation  

Social Security to be Depleted by 2033

The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2034, one year earlier than projected last year, with 78 percent of benefits payable at that time. 

Rules Proposed to End NJ Pension Cost Shifting

The New Jersey Department of Labor and Workforce Development [DLWD] has proposed Rules that will adopt the recommendations of  NJ State Comptroller. A February 2021 investigative report by the NJ State Comptroller raised critical issues common to other state and national collateral social insurance programs challenged by current fiscal limitations. The deadline for written comments is October 15, 2021.

NJ Court Upholds Bar on Implementing Triennial Determination

Disability Benefits before age 62 are not entitled to a COLA (Cost of Linving) increase in benefits, a “triennial determination.” The Court reasoned that the 1980 NJ statute allowing for a “reverse offset,” one in which the employer takes the Social Security Disability Offset, also permits NJ law to pre-empt Federal law that mandates such a recalculation. 

American Rescue Plan Act - Compensation Provisions

On Thursday, March 11, 2021, the President signed into law:H.R. 1319, the “American Rescue Plan Act of 2021,”PL 117-2, March 11, 2021, 135 Stat 4

Supplement Benefit Bill for Surviving Dependents of Essential Coronavirus Workers Passed by NJ Legislature

The NJ Legislature has now passed S2476. It provides supplemental benefit payments to the dependents of essential employees who died in the course of employment due to the contraction of coronavirus disease 2019. 

National COVID-19 Aerosol Workplace Standard Urged

Leading public health and workplace safety experts have urged the Biden Administration to invoke immediate measures to reduce the aerosol spread based COVID-19 virus. In a letter to the national pandemic response team leaders, the experts have stated that urgent action is needed on a national scale.

Investigative Report Raises Issues

The tension between public pension systems and workers' compensation programs was highlighted in a recent investigative report by the NJ State Comptroller. The report raises additional critical issues common to other state and national collateral social insurance programs challenged by current fiscal limitations.

Is Workers’ Compensation Prepared for Domestic Terrorism?

The nation’s workers’ compensation system may be facing a new challenge, domestic terrorism. The National Terrorism Advisory System (NTAS)  issued a bulletin effective January 27, 2021, alerting the nation to a high threat environment.  The Department of Homeland Security alert extends through April 30, 2021.

Is the workers' compensation system ready for the COVID-19 [coronavirus] virus? Live Updates

It seems that every decade a new pandemic emerges on the world scene, and complacency continues to exist in the workers’ compensation arena to meet the emerging challenges of infectious disease.

NJ Governor Declares State of Emergency in Advance of Winter Storm

NJ Governor Murphy has declared that all State offices will close at 1pm on December 16, 2020 due to inclement weather conditions. Personnel who are not designated as weather essential should go home and continue to work their regular shift via telework. 

Trust Through Transparency

A significant concern of employees, employers, and insurance companies is whether or not the new COVID-19 vaccines are safe to take. Vaccine efficacy is going to have a significant impact on the decision-making process.

Hospital Workers Proven Exposed to Airborne COVID Virus

Proving causal relationship in a health worker COVID occupational disease claim has just been bolster by a recent report associating SARS-CoV-2 in aerosols in disease transmission. 

Coronavirus (COVID-19) - The workers' compensation community should support TTSI

The workers' compensation community should play an active role to contain the spread of COIVD-19. Labor, Industry and insurance companies must be encouraged to participate in contact tracing, testing and supported isolation [TTSI]. All reports of illness and incidents of COVID-19 should trigger reportable investigations that are co-ordinated with local and state health agencies. Communication with employees should be encouraged for testing, isolation and expansion of contact testing.

Rep. Maloney Joins with Industry and Trade Association Leaders to Introduce the Pandemic Risk Insurance Act

Congresswoman Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, today joined with various stakeholders to introduce H.R. 7011, the Pandemic Risk Insurance Act of 2020 (PRIA). This legislation will create the Pandemic Risk Reinsurance Program, a system of shared public and private compensation for business interruption losses resulting from future pandemics or public health emergencies.

NJ Governor Murphy Signs Sweeping Legislative Package to Combat Worker Misclassification and Exploitation

Acting on his commitment to support and uplift New Jersey workers, Governor Phil Murphy today signed a legislative package combatting worker misclassification and exploitation. The bills will crack down on employee misclassification in businesses by allowing stop-work orders against employers violating state wage, benefit, and tax law; providing assessment of penalties for violations in connection with misclassification of employees; and requiring employers to post a notice for their employees regarding employee misclassification, among others.

Dependents of NJ Public Safety Workers May Receive Supplemental Benefits

A new benefit program, providing additional workers’ compensation benefits for some dependents of public safety workers, goes into effect on January 1, 2020.

New COLA Increase for Certain Dependents

NJ Governor Phil Murphy has now signed legislation enacting a  cost of living adjustment [COLA] increase for workers' compensation benefits. The law is limited to dependents of public safety employee who have been killed in a workplace accident.

The law provides, from January 1, 2020 forward, an annual COLA in the weekly WC benefit rate for the surviving dependents of any public safety worker who died from a workplace injury after December 31, 1979. A public safety worker is an individual who is employed by or a member of a paid, partially-paid, or volunteer fire or police unit, including a first aid or rescue squad. 

The annual COLA will equal the percentage increase in the annual Statewide average weekly wages earned by all employees covered by the “unemployment compensation law.” For supplemental WC benefits paid for workplace injuries that occurred after December 31, 1979 but before January 1, 2020, the calculation will be performed relative to the Statewide average weekly wages in effect in the year of the injury. However, the calculation applies only to benefits paid beginning on January 1, 2020 without any retroactive benefit payment. 

COLA benefits are to be reduced by the original amount of any Social Security benefits a surviving dependent receives (but not the amount of any Social Security disability benefits and any subsequent cost-of-living increases in Social Security benefits) or Black Lung benefits. 

In addition, COLA benefits will not be paid to any individual who elects not to receive Social Security benefits for which the individual is eligible, or in any case in which the COLA would be less than $5 per week. 

COLA benefits are to be paid from the SIF starting on January 1, 2020. The Department of Labor and Workforce Development calculates the SIF assessment for each calendar year so that projected resources in the fund equal 125 percent of expected benefit payments in the upcoming year plus 100 percent of the projected cost of administration. The surcharge is levied on all employers that are WC and employer’s liability insurance policyholders or that are self-insured, except for reinsurance or retrocessional transactions, and the State or any local units thereof which acts as a self-insured employer.

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

Governor Conditionally Vetoes NJ Supplemental Benefits Bill

The NJ supplemental workers' compensation bill has been conditional vetoed by NJ Governor Murphy. In the conditional veto message the Governor notes that the legislation's unintended consequences would jeopardize NJ's "reverse offset," shift the cost responsibility and not provide an economic benefit to the injured workers. The NJ Senate then took action.

House Appropriations Committee Releases Discretionary Labor-HHS Funding Bill

Worker safety and health is a focus of the just released House Committee on Appropriations. The Legislation increases discretionary funding by $11.7 billion from the 2019 level, investing in education, health care, medical research, and job training so people have a better chance at a better life; Bill funds firearm injury and mortality prevention research at CDC for first time in more than 20 years.