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By Thomas A. Robinson, Co-Editor-in-Chief, Workers’ Compensation Emerging Issues Analysis (LexisNexis)
One of the significant defining events in the more than 100-year history of American workers’ compensation world was the creation 50 years ago of the National Commission on State Workmen’s [sic] Compensation Laws. The Commission met within the context of a myriad of competing interests, with some desiring a “nationalization” of the workers’ compensation system, others fighting for state-run systems that might be tweaked for local competitive advantage, some arguing for carve-outs for industries with significant union representation, and others who desired a more “tort-like” structure among the various American jurisdictions.
In spite of the significant challenges that the Commission faced, it produced a seminal report that still echoes today. The report is viewed by many as an important barometer for judging the “success” of state workers’ compensation laws. It continues to be fodder for those who desire a more streamlined, “equitable” framework for handling work-related injuries and diseases. Because of the significance of the 1972 Commission and its enduring legacy, we are pleased to offer this year’s edition of the Workers’ Compensation Emerging Issues Analysis. As outlined below, a number of articles this year highlight the Commission’s work and the challenges that still face our industry.[Note: All section numbers below refer to sections in the book.]
As has been the practice with previous editions, we have assembled a number of timely and incisive articles by nationally known legal experts and commentators on a host of interesting topics.
1972 National Commission Report on State Workers’ Compensation Programs
In § 2 of this latest annual volume, we are particularly pleased and privileged to include an extensive written interview of John F. Burton, Jr., renowned expert in the field of workers’ compensation, who chaired the historic 1972 National Commission on State Workmen’s Compensation Laws. The interview, conducted by the Honorable Susan V. Hamilton, former Assistant Secretary and Deputy Commissioner, California Workers’ Compensation Appeals Board, offers Burton’s incisive and candid assessment, not only of the National Commission’s original Report, but on the current status of the American scheme for providing workers’ compensation benefits and medical benefits to injured employees and those who have contracted compensable occupational diseases. Burton allows that, if the National Commission were reconstituted today, it would come to the same conclusion that it did 50 years ago—that state workers’ compensation laws are in general neither adequate nor equitable.
Burton contrasts wage-loss benefit systems with the sorts of systems that rely primarily on impairment ratings. He provides important historical context in the important debate during the 1970s that sought to determine if the state workers’ compensation acts should be jettisoned for a federal standard. He calls into question a popularly-held sentiment—that employers freely move from states with high workers’ compensation costs to states with low costs. He indicates there is little evidence that the phenomenon has occurred. Burton discusses the contentious issues surrounding the new “gig” economy, problems related to misclassification of workers, and the difficulties many states have encountered in handling COVID-19 claims.
In “The ‘Grand Bargain’ of Workers’ Compensation: Not Such a Good Deal?” [§ 3], Roger Rabb reviews a recent law journal article by Michael C. Duff, Professor of Law, Saint Louis University School of Law, “Fifty More Years of Ineffable Quo? Workers’ Compensation and the Right to Personal Security,” 111 Kentucky L. J. ___ (2022). As explained by Rabb, Duff argues that modern workers’ compensation benefits are woefully inadequate and often measured arbitrarily, that they often fail to protect workers’ rights to personal security, and that a number of state legislatures appear intent upon their “race to the bottom.”
In § 4, we round out our discussion of the 1972 National Commission by reprinting an article written ten years ago by our colleague, Karen C. Yotis, entitled “Liberal Republicans, Consensus Politics, and a Fluke: The WILG Looks Back on 40 Years of Worker Advocacy.” The occasion of the article was the 40th anniversary of the National Commission, commemorated in Chicago that year in a meeting of the Workers’ Injury Law & Advocacy Group (WILG). We have included this article because it is so well juxtaposed against Burton’s written interview, already noted above [see § 2].
COVID-19 Pandemic Issues
In “Should Losses Caused by COVID-19 Be Covered Through the Workers’ Compensation System?” [§ 5], Susan Hamilton discusses a recent RAND study that examines the advantages and disadvantages of expanding workers’ compensation to cover costs for workers required to work outside the home who contract COVID-19. The RAND study looked particularly at those states which enacted special presumptions of compensability favoring some types of employees. The study addresses the impact of COVID-19 presumptions on employers and insurers, offering some suggestions to mitigate the negative effects associated with the incorporation of the claims into the workers’ compensation system.
Hamilton continues her COVID-19 discussion with an examination of several other RAND studies. Her piece, entitled “RAND Study Sheds Light on COVID-19’s Impact on California Workers’ Compensation System” [§ 6], examines the pandemic’s impact in California, particularly in light of the broad presumption of compensability that the Golden State initiated for its workforce. That discussion is complemented by her review of a separate RAND study in an article entitled “The Million Dollar Question on COVID-19 Presumptions: RAND’s Latest Study Expected to Guide the California Legislature” [§ 7]. Lastly, her piece, entitled “Study on COVID-19’s Impact on Drug Overdose Deaths by Occupational Is a Cause for Alarm” [§ 8], examines the possible connections between COVID-19 and the rise in overdose deaths around our nation.
In my article, entitled “New Study Confirms Age as Strongest Risk Factor Associated with Increased Workers’ Comp Costs Related to COVID-19 Claims” [§ 9], I highlight the findings of a recent study published in the Journal of Occupational and Environmental Medicine that appears to confirm anecdotal evidence that an employee’s age at the time of COVID-19 infection is the major factor associated with prolonged impairment and high costs of COVID-19 workers’ compensation claims.
In § 10, Roger Rabb reviews a study published in the American Journal of Industrial Medicine that examines the safety hurdles faced by “digital platform” drivers, such as those who work with Lyft and Uber, as they maneuver through the COVID-19 landscape [see his piece, “Gig Drivers in the Era of COVID: How Safe Does it Feel Behind the Wheel?”].
Just when many of us thought it might be safe to return to the workplace, we are beginning to see studies on so-called “Long COVID” in the workplace. Rabb adds insightful discussion of that phenomenon in his article entitled “Dealing with Long COVID in the Workplace: A Work in Progress?” [§ 11].
Other Emerging Issues
One of the recommendations of the 1972 National Commission was that states remove limits on the payment of benefits for permanent total disability or death. Characterizing the limits as “arbitrary,” the Commission recommended benefits be paid “for the duration of the worker’s disability or for life and, in case of death, should be paid to a widow or widower for life or until remarriage.” North Carolina attorneys, Elizabeth Ligon and Logan Shipman, offer an interesting look at the state’s extended benefits cap in their piece entitled “An Historical Analysis of North Carolina’s Extended Benefits Cap and Potential Constitutional Challenges to N.C. Gen. Stat. § 97-29” [§ 12]. Readers should not view this article as overly “state-centric,” as the issues and arguments discussed therein are common to a number of other jurisdictions.
I’m happy to include my annual catalog of bizarre fact patterns in workers’ compensation cases in an article entitled “The Top 10 Bizarre Workers’ Comp Cases for 2021” [§ 13].
One of the hottest issues in the workers’ compensation world relates to the reimbursement of medical marijuana. In § 14, Roger Rabb provides us with the current landscape in his piece, “Workers’ Compensation Reimbursement for Medical Marijuana Usage Reviewed.”
Issues often surface in California before moving to other jurisdictions. Such is the case with professional employer organizations (“PEOs”), companies that hire out employees to specific companies or clients to perform work at the customer or client location. Disputes can arise as to which entity is the “employer.” Whose work is being done? How should insurance coverage be structured? Prolific legal expert, now Presiding Workers’ Compensation Judge Robert G. Rassp, takes on these issues in his thorough article, found in § 15, entitled “California PEOs: How to Prosecute and Defend Cases Involving Employee Leasing Agreements.”
Susan Hamilton takes on two other California issues that have relevance well beyond that state’s borders in her articles: “Earnings Losses and Benefit Adequacy in California’s Workers’ Compensation System” [§ 16] and “First Responder PTSD Presumption: What RAND Reveals About Its Import and Effectiveness,” [§ 17].
As is our practice in past years, Part II offers a state-by-state and Canadian rundown on important workers’ compensation legislation and other developments during the past year. Part II also contains spotlight case decisions from many jurisdictions. Important state-specific updates include:
Interesting spotlight cases include:
As in years past, with this year's edition of Workers' Compensation Emerging Issues Analysis, we have endeavored to provide a broad range of interest content for the workers’ compensation community. We trust you will find it educational and informative.
© Copyright 2022 LexisNexis. All rights reserved. This article is reprinted from Workers’ Compensation Emerging Issues Analysis, 2022 Edition.