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The Workers’ Compensation Reform bill passed and is effective immediately unless
otherwise noted. The new law limits the duration of benefits for “permanent partial
disability” cases. Previously, the workers compensation law allowed lifetime payment of
cash benefits in such cases but the reform package limits the number of years during
which benefits would be available. The new law does however create a “safety net”
established for those cases that are determined to involve extreme hardship. The new law
also increases the maximum weekly benefit from $400 to $600 over a three year period.
In the fourth year, the maximum weekly benefit will be two-thirds of the average weekly
wage and the maximum will thereafter be adjusted annually beginning in the fifth year.
The Worker’s Compensation Reform package also creates new programs specifically
designed to aid injured workers in receiving prompt medical treatment and return to
gainful employment and also creates strong anti fraud measures. The new law eliminates
the Second Injury Fund. The Reform package directs the State Superintendent of
Insurance to pursue administrative reforms such as designing an expedited hearing
process, new treatment guidelines, new return to work initiatives, and training for
administrative law judges who hear workers compensation cases. |