NJ Governor’s Report on Misclassification

Governor Phil Murphy today released a comprehensive report from the Task Force on Employee Misclassification, vowing to intensify efforts to curtail the widespread and illegal practice of misclassifying workers as independent contractors instead of employees, which cheats some workers out of benefits and wages, hurts law-abiding business owners, and costs the state tens of millions of dollars a year in lost employment-related tax revenue.

The Urgent Need for Workers Compensation Flu Pandemic Planning

The 2009 influenza pandemic (flu) has created a new framework of acts and regulations to respond the World Health Organization’s (WHO) phase 6 pandemic alert. Governmentally imposed employment disruptions resulting from regulatory work disruptions to prevent the spread of disease maybe massive. While workers’ compensation was envisioned as a summary and remedial social insurance program, the challenges facing the workers’ compensation system to deliver benefits as promised may be seriously burdened.

There has been a global reaction to the 2008 influenza pandemic. On April 25, 2009, the WHO director-General Dr. Margaret Chen declared the H1N1 virus outbreak as a “Public Health Emergency of International Concern.” The international declaration indicated that a coordinated international response was potentially necessary to prevent curtail the spread of the disease that was perceived as a public health risk. Recommendations to restrict both trade and travel may follow.

The United States has structured its response on both a State and Federal level to the 2009 influenza alert. The Public Health Service Act (PHS) permits the Secretary of Health and Human Service (HHS) to access a special emergency fund, allows or the use of unapproved medical treatments and tests, and allows waiver of certain reimbursement of Medicare and Medicaid expenses, and waives penalties and sanctions for violation of the HIPAA Privacy Rule requirements. Additionally, the President may issue an emergency declaration under The Stafford Act to co-ordinate emergency relief under State and Federal programs, ie. use and distribution of anti-viral medications.

The Federal government has sweeping powers under the PHS that could disrupt employment throughout the country. Recommendations for school closings will impact children and staff well beyond the approximate 700 facilities that were closed in the Spring of 2009 during the H1N1 initial outbreak. The Federal government under the PHS has authority to quarantine (interstate and border) and to isolate. An Executive Order (E.O. 13375, April 2005) enumerates the “quarantainable diseases.” Travel restrictions may be imposed to limit the spread of a communicable disease. Employees may not be permitted to board flights under either voluntary airline restrictions or through the Federally imposed “Do Not Board” lists.

These closings and restrictions have raised issues as to what programs, if any, will be able to provide benefits to the employees because of the involuntary nature of the closings and disruptions. A recent Harvard School of Public Health study reveals that 80% of businesses foresee severe problems in maintaining operations if there is an outbreak. The workers’ compensation system could be requested to provide temporary disability benefits for occupational disease absences on a massive scale never before experienced. Pre-emption by superseding emergency regulatory actions may curtail employment that will trigger the implementation of State workers’ compensation benefits. The employer and the workers’ compensation insurance carriers will be required to pay temporary disability and medical benefits as a direct consequence of efforts to prevent the spread of a communicable disease. The carefully crafted employee-employer notification structure integrated into the workers’ compensation system may be partially or entirely disrupted by the consequences and chaos of the global health emergency.

Workers’ Compensation claims arising out of the influenza pandemic of 2009 will need to fit into the convoluted framework statutory acts and regulation. Reimbursement from the usual collateral third-party reimbursement sources may be restricted. In addition to the Doctrine of Sovereign Immunity, enjoyed by the Federal and State governments, other legislation including The “Public Readiness and Emergency Preparedness Act" (PREP Act) limits liability of others under certain specific emergency circumstances.

The enormity of the Pandemic presents a new and novel challenge to the system and one that must be considered by both Federal and State planners. Workers’ Compensation programs have adapted to emergencies before including natural disasters and terrorist attacks. The urgency of the situation requires that the system be vaccinated now.

For more articles on Workers' Compensation and the Flu Pandemic click here.

Now Available: New 2008 Supplement for Gelman on Workers' Compensation Law 3rd Ed.

Thomson/West has published the 2008 supplement to Workers' Compensation Law 3rd ed., (Vols. 38 - 39A, New Jersey Practice Series) authored by Jon L. Gelman.

NEW MATERIAL INCLUDES:

• These pocket parts provide information concerning the Asbestos Fund, which has been established for those entities where workers' compensation coverage cannot be established. The newly designed forms that need to be utilized in filing for benefits are included. Also, the newly designed Motion for Temporary and Medical Benefits, including the required certification, is provided and discussed.

• The newly revised Judgments for Total and Permanent Disability are included. The Judgments include new refinements in offsets for pensions and Social Security disability benefits.

• The recently promulgated administrative rules governing the disposition of Temporary Disability Benefits are discussed. The nonduplication of benefits provisions are reviewed including the multiple agency adjudication process.

• Collateral medical benefit issues are discussed in light of the recent Supreme Court decision concerning this matter, including a Motion to Join the Collateral Health Carrier and sample Certifications to be used in support of the application.

• Additionally, these pocket parts provide information concerning thenew rules of the Division of Workers' Compensation embodying electronic filing requirements and new procedures involving both formal and informal proceedings, motion practice, post judgment process, and judicial performance. The expanded Medicare secondary reporting requirements and the mandatory coordination of benefits are reviewed in this supplement. The recovery aspects of Medicare conditional payments as well as future medical provisions are updatedand discussed. The new Child Support Lien distribution forms, computation worksheets and judgments are provided and explained in depth.

• This pocket part also discusses recent changes in the application for counsel fees. The supplement includes the newly promulgated administrative directive embodying those changes

To order: Click Here

The volume is also available on Westlaw and in CD-Rom format.

NJ Workers Compensation Payments to Decrease

For the first time in history, the NJ workers compensation benefit rates are going to decrease. The maximum benefit rate will decrease 0.3% from $794.00 to $792.00 per week.


The 2011 maximum workers' compensation benefit rates for temporary disability, permanent total disability, permanent partial disability and the dependency rate are based upon the States's Average Weekly Wage (SAWW) for the year prior. New Jersey currently provides for a maximum benefit of 75% of the statewide average weekly wage (SAWW). 

The New Jersey maximum rate has been considered significantly low when compared to to other states and perennially a higher adjustment has been recommended.  

The rate applies to those work related injuries and deaths that occur in 2011. NJ ADC 12)2351.6, 42 N.J.R. 1994 (a). In 2007 the rate rose a modest 2.7 %.

Historically, NJ maximum workers' compensation has only risen yearly over the decades. The 2011 announced decrease represents a major slow down in the State's economy. Despite the announced fall in scheduled disability rates, the cost of soaring medical treatment remains uncapped and its economic impact remains uncertain in an era of declining payrolls and lower premium collections for compensation benefits.

Related Articles:

• Slow Economic Grown Forecasts Dismal Future for Workers Compensation
• The Declining Euro and US Workers Compensation
• NCCI Reports Gloomy Outlook for Workers Compensation
• NJ Unemployment Worse Than Previously Estimated
• Is The Recovery Of The Workers’ Compensation System An Illusion?

For over 3 decades the Law Offices of Jon L. Gelman 1.973.696.7900 jjon@gelmans.com have been representing injured workers and their families who have suffered occupational illnesses. Author NJ Workers Compensation Law (West).

Exposed to "Forever Chemicals": NJ Workers' Compensation for PFAS Illness

Per and polyfluoroalkyl substances (PFAS), also known as "forever chemicals," are a growing concern in the workplace. These man-made chemicals are nearly impossible to break down and can build up in the body over time. Unfortunately, some New Jersey workers are facing serious health consequences due to PFAS exposure.

Trending: Opting-Out of Workers' Compensation

Opting-out of workers' compensation coverage is now a significant national trend. The opt outs are  both through a legitimate elective process and a de-facto scheme.

The opt-out process arose through a  legislative process over a decade ago when Massachusetts legislation permitted the option to elect out of the mandatory workers' compensation system. Since then it has grown through both legitimate and illegitimate expansion. Some legislators have proposed that religious organizations should now be permitted to not obtain coverage.

In March the expanding trend to opt-out of the workers' compensation system took a major leap as large employers began to leave the system and offer less benefits to injured workers. Walmart, one of the largest employers in Texas has made the election to leave the system. Within the last two years other large employers have exited the system, including Target, seeking to reduce costs through a private non-workers' compensation plan.

Some states have reported increasingly high rates of uninsured workers. The enforcement and collection activities, are unfortunately both time consuming and expensive and are usually conducted after the fact.

A de-facto opt-out process is also occurring nationally through a process of misclassification of workers. Employees are designated by employers as independent contractors and consultants to avoid mandatory coverage and taxes. In North Carolina  it has been reported that 30,000 business do not have mandatory workers' compensation coverage. The system attempts to avoid the tedious and time consuming process to seek workers' compensation benefits, and instead employees seek benefits from alternative sources including major medical plans, Medicare and social security. Temporary disability plans and major medical plans act as coverage for loss time and treatment. Employee are willing to fore go permanent disability inorder to get certain and immediate medical care and lost time benefits. Many employees have no idea that workers' compensation pays for permanent disability. The aging workforce assumes that Social Security Disability is a more user-friendly system to navigate.

The growing trend of opting out of the workers' compensation system is of concern to all. Why this is occurring in a system that was designed to protect both the worker and the employer needs to be identified and addressed.

Related articles

• Compensation Blog Launched To Help Iowa Workers (workers-compensation.blogspot.com)
• The Religious Opt-Out Scheme: A New Approach to Eliminate Workers' Compensation (workers-compensation.blogspot.com)
• Workers Compensation Is Quietly Under Attack in America (workers-compensation.blogspot.com)

On-Demand Labor - Is Workers' Compensation Ready for Flex-Time Employment?

Today President Obama announced the expansion of flexible hours for governmental employees. This major trend, already exists in private industry as companies seek to expand on-demand employment.

This appears to be an expansion of  the President's remarks made Saturday in his weekly address: "Then there’s the issue of flexibility – the ability to take a few hours off for a parent-teacher conference or to work from home when your kid is sick. Most workers want it, but not enough of them have it. What’s more, it not only makes workers happier – studies show that flexibility can make workers more productive and reduce worker turnover and absenteeism. That’s good for business."

A serious issue will be whether the century old workers' compensation system be able to adapt to the irregular work hours. Workers' compensation is a patchwork of systems that evolved 100 years ago in a tradeoff of benefits and legal duties. It's fiscal structure is based on premiums paid for hours worked, ie. audited payrolls.

A new dynamic now exists in both the delivery of both wage loss benefits and medical benefits. This new frontier will have a profound effect upon the national workers' compensation program.

Wages historically form the basis of establishing rates for both temporary and permanent disability benefits. Some of those benefits are subject to reconstruction based on limited/reduced wages, ie. temporary disability benefits. Some wages not reconstructed, ie. permanent disability benefits. 

The cost of medical benefits is an escalating challenge to the entire system. Medical benefits are paid entirely by the employer. As medical/pharmaceutical benefits continued to soar in cost, and the Federal medical care program continues to expand, the Affordable Care Act, workers compensation program will become less stable. 

Over the decades the concept and ethic of work, as we have know it to exist, has changed. Adding the processes of, the expansion of flexible work hours and on-demand employment on a global basis, will require readjustment of the workers' compensation delivery system. 

….

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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• Home Care Workers Win Wage and Overtime Protection (workers-compensation.blogspot.com)
• The Vanishing Concept of a Job (workers-compensation.blogspot.com)
• Inside low-wage workers' plan to sue McDonald's - and win (workers-compensation.blogspot.com)
• Workers Compensation Is Quietly Under Attack in America (workers-compensation.blogspot.com)

Judicial Enforcement is Limited in Workers’ Compensation Claims

The enforcement provisions of the Workers’ Compensation Act [WCA] are strictly limited. Judges of Compensation are mandated to follow the statute, regulations and the specific facts in addressing enforcement issues.

Employer Responsible For Payment of Counsel Fees On Penalty

"... a judge of compensation must award counsel fees in addition to a penalty when an employer fails to make timely payment of temporary disability benefits and the appropriate standard to fashion the reasonable attorneys' fees allowed by statute. We hold that an award of attorneys' fees is mandatory and the judge of compensation is not limited by the statutory formula governing fee awards following an award of benefits. See N.J.S.A. 34:15-64.

"...a petitioner who resorts to section 28.1 to force payment of temporary disability benefits receives not only the 25% penalty but also reasonable legal fees incurred "as a result of and in relation to [the] delay[ ] or refusal[ ]." The fee is not subject to the 20% limitation of section 64, and shall be calculated in accordance with the standard factors for constructing a fee award.


Petitioner was represented by NJ Super Lawyer, David Tykulsker, Esq.

KUBRA QUERESHI - v. CINTAS CORPORATION, 

--- A.2d ----, 2010 WL 2132441 (N.J.Super.A.D.), Decided My 28, 2010. Click here to read more about penalties. Click here to read more about workers' compensation claims.

Parsippany NJ settles $54,000 workers' comp dispute with ex-construction official

Sick Leave Benefits were the subject of a $54,000 settlement where the employee received temporary disability benefits and a NJ municipality attempted to dock the employee of benefits. Today's post is shared from The Star Ledger nj.com The township has agreed to pay its former construction official $54,063 to settle a workers' compensation dispute that surrounded sick days that were docked from his accrual bank. "Authorities have reached a settlement agreement and release with Edward J. Corcoran, retired construction official," Councilman Paul Carifi Jr. said at the Nov. 12 council meeting.  "He received workman's compensation, and at times he was unable to return to work. From Feb. 27 to May 31, sick-day payments were docked from his sick day accrual bank. He disputes the docking from his sick day bank. While not admitting any liability or fault, the township and Corcoran have engaged in a settlement." Corcoran had been employed as the township's construction official since July 21, 1994, according to the Nov. 13 settlement agreement.. On Jan. 23, he was injured in a work-related incident and unable to return to work, and began receiving workers' compensation temporary disability payments, the settlement said. On Jan. 29, Corcoran was evaluated at Concentra Urgent Care, and on Feb. 1, Concentra determined he reached maximum medical improvement — meaning treatment would no longer improve his medical condition, and benefits would be terminated. On Feb. 26,...

[Click here to see the rest of this post]

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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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Nebraska Supreme Court: Workers' comp includes PTSD, drug treatment after store shooting

Today's post about "PTSD" is shared from omaha.com LINCOLN — The two armed men robbing Gen-X Clothing in June 2011 warned store manager Matthew Kim not to report the crime. He reported it anyway, leading to the arrest of the two men. One robber's brother showed up at the 76th and Cass Streets store two weeks later and shot Kim 12 times to keep him from testifying. The brother followed up with telephone threats against Kim, his mother and his son. Kim testified anyway, helping send all three men to prison. Workers' compensation covered his hospital and medical bills and paid temporary disability benefits during his physical recovery. But Gen-X and its workers' compensation insurance company balked at paying for treatment when Kim developed post-traumatic stress disorder after the crime, leading to a severe drug and alcohol dependency. On Friday, the Nebraska Supreme Court ruled against the Omaha clothing store and the insurer, Farmer's Truck Insurance Exchange. The state high court ordered Gen-X and Farmer's to pay for Kim's inpatient chemical dependency treatment and his future medical expenses. It also ordered them to continue paying him temporary disability benefits. Dirk Block, an attorney for Kim, said his client was “very pleased and grateful” for the ruling. The decision means Kim will have a source of support while he continues his recovery, Block said. “He's a pretty brave guy, to be treated this badly,” he said. “It's been very unfortunate that, in addition to having to face down...

[Click here to see the rest of this post]
Related stories about PTSD:

Nebraska Supreme Court: Workers' comp includes PTSD ...

4 hours ago

LINCOLN — The two armed men robbing Gen-X Clothing in June 2011 warned store manager Matthew Kim not to report the crime. He reported it anyway, leading to the arrest of the two men. One robber's brother showed up ...

http://workers-compensation.blogspot.com/

Workers' Comp will cover hijacked UPS driver with PTSD

Nov 27, 2013

Risks associated with employment are usually covered under Workers' Compensation claims. Assaults usually are traumatic in nature and having a component of psychological stress manifested in post traumatic stress ...

http://workers-compensation.blogspot.com/

Zadroga Health Fund: Utility Workers Suffer Increased Anxiety

Feb 24, 2011

A recent study reveals that utility workers who were deployed at the World Trade Center (WTC) disaster site on 9/11 have an increased level of post traumatic stress disorders (PTSD) and depression. The study may ...

http://workers-compensation.blogspot.com/

Workers' Compensation: NY Opens 1 Year Window for 9/11 ...

Sep 25, 2009

"Results from large epidemiologic studies suggest that probable posttraumatic stress disorder (PTSD) is the most common WTC-related health condition among exposed adults. Probable PTSD means that individuals scored ...

http://workers-compensation.blogspot.com/

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California: Did Workers' Comp Reform Go Too Far?

Friday October 5, 2007

Did Workers' Comp Reform Go Too Far?

By Alan J. Wax

California employees have borne the entire brunt of the Governor's 2004 Workers' Compensation Reform (SB899). Studies by state agencies confirm that the benefits have been reduced by 50 to 70 percent. Even the U.S. Chambers of Commerce reports that California's benefits are among the lowest in the nation. The average maximum weekly permanent disability benefit for the nation is $595, compared to California, which is $270. Weekly benefits for permanently disabled workers in California are the fourth lowest in the nation. Balance this with the fact that California's cost of living is one of the highest in the nation. The insurance industry reports their profits for the last three years exceed the cost of all benefits combined. (Based on the Workers' Compensation Insurance Rating Bureau July 2007 Rate Filing and Summary of March 31, 2007 Insurer Experience)-

Here are some examples of California's ranking among the lowest in the nation compared to other states:

Loss of an eye: California ranks lowest in the nation!

Hearing loss in one ear: California ranks lowest in the nation!

Loss of a foot: California ranks second lowest in the nation!

Loss of a leg at hip: California ranks sixth lowest in the nation!

Loss of a thumb: California ranks seventh lowest in the nation!

(Source: "Analysis of Workers' Compensation Laws," U.S. Chamber of Commerce)

In a special hearing regarding the Reform, Senator Sheila Kuehl had admonished the then, Administrative Director Andrea Hoch by stating that there was no legislative intent to reduce "whole hog" the overall benefits, the then Chairman Richard Alarcon, stated it was his understanding "that [SB899] should not reduce benefits to injured workers." In fact, Governor Schwarzenegger was quoted as saying, "I never wanted to hurt any one of the workers or the people that get benefits," (Sacramento Bee, November 19, 2003). However, that is exactly what is being done by this reform.

SB 936 sponsored by Senator Don Perata, would help restore fair and adequate in small measure benefits for those who through no fault of their own become permanently disabled as a result of a work related injury and will not require any cost increase for employers. As permanent disability benefits represent only 13 percent of total benefits. This measure has been passed on a virtually unanimous vote of Senate and Assembly Democrats. This remedial bill partially corrects unintended 50 to 70 percent cuts in permanent disability compensation to injured workers. There are many problems with the workers' compensation reform dealing with limits on reasonable medical treatment, temporary disability benefits and vocational retraining. SB 936 would be a first step in trying to restore modest compensation to California's injured on the job.

Alan J. Wax, a Certified Specialist by the State of California in the area of Workers' Compensation Law, and a member of Board of Governors of the California Applicant's Attorney's Association is a partner with the law firm of Wax & Wax. He can be reached at (661) 255-9585. His column represents his own views, and not necessarily those of The Signal. "Business Law" appears Fridays and rotates between members of the Santa Clarita Valley Bar Association. www.SCVbar.org.

OSHA Enforcement Cases Involving Temps On the Rise

Today's post shared from OshOnLine.com illustrates a new efforcement effort by OSHA that will improve the work environment for all Americas. OSHA's emphasis on the safety of temporary workers is being driven home by a series of enforcement actions. The latest case announcement on June 19 involved the Macon, Ga., facility of a company named California Cereal Products Inc., which OSHA has cited for exposing full-time and temporary workers to electrical, fall, and noise hazards, with proposed penalties totaling $40,600. OSHA opened an inspection last December based on a complaint. "The employer has failed to protect full-time and temporary workers from easily identified workplace hazards that can result in death or permanent disability," said Bill Fulcher, director of OSHA's Atlanta-East Area Office. The case against beverage bottling company Maplewood Beverage Packers LLC and temporary employment agency Corporate Resource Services Corp. in Elizabeth, N.J., also began with a December 2013 investigation, but it started with a referral from the Maplewood Fire Department after a temporary worker was injured falling from a ladder. OSHA has proposed $182,270 in penalties. "Host employers and staffing agencies are jointly responsible for ensuring worker safety and health," said Kris Hoffman, director of OSHA's Parsippany Area Office. "Employers must protect all workers from job hazards-both permanent and temporary workers."

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Top NJ Workers' Compensation Decisions of 2019

It has been an active 2019 for workers’ compensation decisions in New Jersey. There have been two NJ Supreme Court opinions and three reported Appellate Court opinions that are noteworthy. From a review of the pending docket the NJ Supreme Court will be reviewing at least 3 very significant issues in 2020 invoking workers’ compensation issues.

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. 

NJ Corrections Officers Are Entitled to Supplemental Benefits

NJ Corrections officers and other designated safety officers are now entitled to supplemental payments equating to full salary while on Workers’ Compensation temporary disability benefits. Recent legislation that was effective as of October 17, 2017, requires certain employers to make supplemental payments so that full salary is received by the injured workers.

New Jersey Workers' Compensation Maximum Rates to Increase in 2018

In accordance with the provisions of N.J.S.A. 34:15-12.a, the maximum workers' compensation benefit rate for temporary disability, permanent total disability, permanent partial disability, and dependency is hereby promulgated as being $903.00 per week.

NJ Workers' Compensation Maximum Rate Rising in 2014

The maximum NJ Workers' Compensation is proposed to rise to $843.00 per week in 2014.  The rate is based upon the State's Average Weekly Wage (SAWW). The rate applies to temporary disability, permanent disability, permanent total, permanent partial total, and dependency benefits.
The rate for 2013 is $826.00.

NJAC 12:235-1.6 (September 3, 2013)
2013 NJ REG TEXT 335666

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Compensating Sick Workers at Home with H1N1 Flu

While the United States has established a national protocol to meet the medical challenges H1N1 flu pandemic, there remains a void on how to pay workers who are ill and have been encouraged by the government to stay home.  The litigious workers' compensation adversarial system may provide benefits ultimately for those who can demonstrate that their illness "arose out of and occurred in the course of the employment," after months, if not years, of delay. 


Some states have temporary disability programs, fraught with bureaucratic delay and red tape, while the issues of denial in the workers' compensation claims become identified. If held to be compensable, reimbursement is then sought by the temperate disability plan, public or private, 


The issues of a lack of an efficient wage replacement system for those workers affected by the H1N1 flu will be addressed by Congress shortly. The chorus of advocacy is increasing as this debate advances. The following is a recent post from the occupational-environmental mailing list setting forth a pretty persuading argument to establish a plan to pay sick workers with H1N1 flu.

Sick At Work

When the first cases of the H1N1 virus (swine flu) were confirmed in America back in April, the Centers for Disease Control and Prevention advised that sick individuals stay home from work or school. "Influenza is thought to spread mainly person-to-person through coughing or sneezing of infected people," the CDC said."If you get sick, CDC recommends that you stay home from work or school and limit contact with others to keep from infecting them." However, for many Americans, staying home from work due to illness -- or to care for a sick child -- is an impossibility because of a lack of job-protected paid sick days. In response to the threat posed by H1N1, Rep. George Miller (D-CA) has proposed legislation that would "guarantee five paid sick days to employees at businesses with 15 or more workers who are directed to stay home by management." However, Miller's plan sunsets in two years and gives employers, not employees, the right to decide when leave is taken. Plus, under Miller's plan, employees cannot use leave time to care for a sick child. The Healthy Families Act (HFA), which is also before Congress, would guarantee seven paid sick days per year to all workers at firms with 15 or more employees. "Paid sick days has always been a good, common sense idea, but, in light of the recent H1N1 epidemic, it has also become a necessary one," said Rep. Rosa DeLauro (D-CT), an HFA sponsor. "Right when more and more workers are feeling economically vulnerable and afraid to even miss one workday, we face an extraordinarily serious health risk that spreads much more quickly if the sick do not stay at home." Last week, the Obama administration officially agreed, and endorsed the HFA.

LOW-INCOME WORKERS HIT THE HARDEST: The U.S. is currently the only developed nation that does not require some paid sick leave for workers. Nearly 40 percent of private sector workers have no paid sick leave, including 78 percent of hotel workers and 85 percent of food service workers. A survey last year by the National Opinion Research Center at the University of Chicago found that "68 percent of those not eligible for paid sick days said they had gone to work with a contagious illness like the flu." As CAP Senior Fellow Ann O'Leary and Karen Kornbluh, U.S. Representative to the Organisation for Economic Co-operation and Development, pointed out in The Shriver Report: A Women's Nation Changes Everything, "too often, most low- and many moderate-wage workers cannot access even the minimum benefits provided to more highly paid workers." And this is true of paid sick leave, as 88 percent of workers in the top 10 percent of wage earners have it, compared to just 22 percent of workers in the bottom 10. "Hopefully, employers are doing the right thing and not disciplining workers who are out sick as a result of the flu," wrote Center for American Progress Senior Economist Heather Boushey. "But there's no penalty for employers who choose not to pay workers in this situation, or who refuse workers any time off at all."

A BETTER BUSINESS MODEL: Big business organizations have panned the notion of required sick leave, with the Chamber of Commerce saying that "the problem is not nearly as great as some people say," and the National Association of Manufacturers warning that the HFA "would impose an inflexible government mandate on employers, making it more difficult for manufacturers to preserve and create jobs." However, lost productivity due to sick workers attending work and infecting others costs the U.S. economy $180 billion annually. For employers, the cost averages $255 per employee per year and "exceeds the cost of absenteeismand medical and disability benefits." The National Partnership for Women and Families actually found that "while a paid sick days policy would impose modest costs, the estimated business savings total $11.69 per week per worker from lower turnover, improved productivity and reduced spread of illness." The Center for Economic and Policy Research has also concluded that "there is no significant relationship between national unemployment rates and legally-mandated access to paid sick days." "When businesses take care of their workers, they are better able to retain them, and when workers have the security of paid time off, their commitment, productivity and morale increases, and employers reap the benefits of lower turnover and training costs," said National Partnership President Debra Ness.

LOCAL EFFORTS: Two major cities -- San Francisco and Washington, D.C. -- have implemented mandatory paid sick leave policies, while a third -- Milwaukee -- has passed the requirement, only to see it tied up in court. In addition, 15 states have proposed mandatory sick leave laws. "We are all being advised by our doctors to stay home if we're sick, but that is a cruel piece of advice if you don't have paid sick time," Maine Senate President Elizabeth Mitchell said. New York City is also looking at mandatory leave, which Mayor Michael Bloomberg has expressed support for, at least for the city's large employers. New York's proposed requirement would also allow workers to stay home in the event their child's school was closed for public health reasons. "Many working parents suffered this past spring because their children's schools were closed even though their children were not sick," said Donna Dolan, chairwoman of the New York State Paid Family Leave Coalition.

To read more about flu and workers' compensation click here.

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.