SB 898

This bill makes various changes to the worker's compensation law, as

administered by the Department of Workforce Development and the Division of

Hearings and Appeals in the Department of Administration (DHA).

Claims and payments

Maximum weekly compensation for permanent partial disability

The bill increases the maximum weekly compensation rate for permanent

partial disability from $362 to $415 for injuries

occurring before January 1, 2023, and

to $430 for injuries occurring on or after that date.

Part-time employment and wage expansion

Generally, under current law, when calculating average weekly earnings for

purposes of worker's compensation benefit amounts, the the normal full-time

workweek is used, and it is generally presumed that the normal full-time workweek

is not less than 40 hours per week. Current law provides, however, that if an

employee is a member of a regularly-scheduled class of part-time employees,

average weekly earnings are determined using the hours and days established by the

employer for that class, but not less than 24 hours. Current law also provides that

the weekly temporary disability benefits for a part-time employee who restricts his

or her availability in the labor market to part-time work and is not employed

elsewhere may not exceed the average weekly wages of the part-time employment.

The bill replaces the provision in current law regarding employees who are

members of a regularly-scheduled class of part-time employees with a provision

that applies to employees who work less than full time. Under this provision, an

injured employee's average weekly wage is calculated as the greater of 1) the hourly

rate at the time of injury multiplied by the average number of hours worked per week

for the 52 calendar weeks before his or her injury or 2) the actual average weekly

earnings of the employee for the 52 calendar weeks before his or her injury. Weeks

not worked are not counted under either calculation.

Under the bill, however, earnings are expanded to be based on full-time work

if the employee shows that he or she is employed by another employer, by providing

evidence of taxable earnings or evidence that the employee worked less than full time

for a period of less than 12 months. An employer may rebut the employee's evidence

of eligibility for temporary disability benefits based on full-time work by providing

evidence that the employee chose to work less than full time.

Observers in examinations

The bill allows an employee to have an observer, chosen and provided by the

employee, present during a medical examination that is requested by an employer

or insurer following a claim for worker's compensation.

Payment of proceeds of claims against third parties

Current law provides that when an employee sustains a work injury or dies as