With all the publicity about workers’ compensation generated by a new bill in the Legislature, LD 1571, sponsored by Rep. Andre Cushing, R-Hampden — which will have a very negative effect on Maine workers — it is important that we remind people in Maine what workers’ comp really is and why it is important.
If you don’t own a business or have never gotten injured on the job, chances are good you probably don’t know a whole lot about workers’ comp or how it affects you. However, if you work, you should have an understanding of what it is in case you need it someday.
Workers’ compensation laws were adopted in every state in the early 1900s as a response to the increasing number of injuries that occurred in workplaces and the success injured workers had in lawsuits against their employers for their injuries. The workers’ compensation laws were created to protect both businesses and workers.
The laws are supposed to provide workers who are injured on the job and unable to continue to work prompt payment of lost wages and medical expenses. At the same time, the laws also protect businesses by eliminating all workers’ rights to sue for injuries. So if a worker gets injured on the job and is unable to work, no matter if it’s completely the company’s fault, he or she has no right to sue. Instead, he or she is eligible to receive workers’ compensation benefits.
In Maine, benefits are paid to injured workers at 80 percent of after-tax income with a cap of $634.13 a week. That caps stands regardless of the income of the employee. For comparison purposes, other New England states have higher caps at roughly $1,000 a week — and over $1,250 in New Hampshire. The length of time injured workers can receive benefits depends on the level of the injury. If it’s a temporary injury, the benefits last for the length of that injury. If it’s a permanent injury, the length of benefits is determined by the severity of the injury.
All businesses in Maine are required to have workers’ compensation insurance for their employees. The businesses pay an annual premium for the insurance which then covers the monetary and medical benefits for injured workers. Premiums have gone down substantially in Maine over the last 20 years — dropping 50 percent since 1993. In fact, in just the last few months, premium rates were dropped twice — each time by more than 3 percent, saving Maine’s businesses more than $13 million a year.
A typical claim goes like this: When a worker is injured on the job, whether it’s a traumatic accident or a slow-developing injury, the worker has 90 days to report the injury — even if it’s not debilitating yet. Once it’s reported, the employer files the report with the Workers’ Compensation Board.
Right now there is a program that helps injured workers understand the workers’ compensation system and the rights it gives them. The proposed bill would do away with this program and leave injured workers to fend for themselves against corporations and insurance companies with full-time lawyers on staff.
When the injury causes the worker to lose time at work, he or she files a claim for the employer to pay. The employer then has 14 days to agree to the claim and have the insurer begin paying benefits or file a notice of controversy to deny the claim. If a company denies the claim, the appeals process can take more than a year before a decision is made and the employee receives any benefits.
When it all goes as planned, workers’ compensation works well for everyone. The injured employee is covered for lost wages and medical costs right away. He or she doesn’t have to lose his or her job, house or health because of the injury. When the injury is healed, he or she goes back to work. This program also works well for businesses. When an injury happens, it doesn’t hurt the business’s finances. In addition, the business doesn’t have to worry about getting sued.
In short, workers’ compensation — when working correctly — provides protection for workers and businesses. No matter how safe your workplace is, injuries can happen. And workers’ compensation is there for you when they do. That is why it is hard to understand why Rep. Cushing is sponsoring a bill that will make it harder for injured workers to get their benefits.
Emery Deabay is a member of the United Steel Workers Local 1188 and is vice president of the Eastern Maine Labor Council. He lives in Bucksport.
This law, plain and simple, makes it easy for a large, well-heeled company to stack the deck and pay no claims for injuries or illness resulting from work. Every single protection to make sure that the worker is not preyed upon is removed by this law. This will create a market for doctors who do not practice any type of medicine except denying the conditions of those who are injured or sick.
The existing workers comp laws are sometimes frustrating to employers. I have been in the employers seat before. Some exaggerate claims. Some get hurt outside of work and claim it was while at work. Those are fraudulent acts and are punishable by the laws currently in place. The system also makes sure that if someone is hurt, there is a way for them to be compensated for their loss. It is really all about balancing the protections workers need with protections for employers from fraud. The system works now. Rates are higher in high risk occupations and lower in clerical occupations and other low risk of injury settings. They have trended downward. Employers who preach safety and engage workers to be safe are rewarded with lower premiums (comp ratios).
This is simply a law that aims to remove any practical ability for an injured worker to have recourse. If an employer operates in an unsafe way, putting workers at risk, they can have a “company doctor” deny culpability with no second opinion or without a workers chosen trusted doctor participating. It removes all recourse from the worker and preserves and enhances avenues for avoidance of liability for the employer. This is intended to make Maine workers a disposable resource. Once you get hurt, they send in another fresh recruit. For them, no harm, no foul. For the worker, no compensation, no treatment, nothing…..
Another ALEC bill finds its way to our little state……
Great article, great comment.
I remember back in 1993 when John McKernan held the state hostage by shutting down state government because he had a tantrum over the Worker’s Comp laws. It was an idiotic attempt to try and force the legislature into changing the existing laws to his (and big business’s) liking and screw the injured workers. Thank God there were legislators who stood up against Jock and refused to give him everything he wanted. Even still, that was when the unraveling of the fair Worker’s Comp System began.
That was 1991 when he held the state hostage. I know because I camped out in Capital Park since I couldn’t work!!!
Has anything changed?
I probably work harder than you do and have since I was 15 years old!!!
Why is this administration going after injured workers? They aren’t the ones that crashed the economy. This will do nothing to create jobs. What are their priorities??
The author ask why Rep Cushing is sponsoring a bill that would make it more difficult for an injured worker to receive benefits under the workers compensation law. The answer is quite simple. Rep. Cushing like most of the tea party republicans in Augusta including the current resident of the Blaine House just plain hate Maine workers.
Do you know how or even if benefits will be harder to get? Have you read the bill? Please explain.
Yes, I read the bill and it totally guts the WC system putting us back in the dark ages. Company doctors determining if you are disabled? Give me a break. 10 year limit? Do you miraculously get well and day 10 years plus 1 day? It’s just another Tea Party attack against workers. Go after those you believe are defrauding the system not the whole system!!!
Sounds like you are only angry which tells me nothing.
Unfortunately, I do not have my copy handy to give you more details as I am at work, but I can assure you I have throughly read it. I have also talked to many workers who have a hard time getting coverage now, let alone if this passes. Maybe you should read the bil!!
Perhaps this article will fill in the gaps in your understanding of the bill. It identifies the changes that would occur to the system in pretty straight forward language. This bill is very bad for workers. If you are a worker in a dangerous trade, you should be irate at the GOP for promoting this law. Every single provision turns back employee protections and reduces employers liability. If this isn’t an ALEC law, I don’t know who could have written it. This is a wish list for nefarious corporations that seek to increase profits by not caring for those they injure. It is disgusting on its face. This would take Workers Comp back to the 19th century.
http://www.maineemploymentlawyerblog.com/2012/01/proposed-changes-to-workers-co.html
Thank you.
Cheesey we both know that workers benefits and rights under the Workers Compensation Act have been going down since Jock was living in the Blaine House. Not only have I read the bill but I have taken part in a few discussions on it as well. My interest in workers comp goes back a couple of decades when I saw how the system could be manipulated by not just the worker and their attorney, but also the insurer and their attorney as well. I won’t even mention the others that took advantage of the system like Doctors, Chiropractors, Psychologist, therapist and many many more . In fact there is a certain Chief US District Court Judge with whom I have numerous discussions about workers comp over the years. At one point in time his law firm did a lot of work representing insurance companies on WC matters Are you trying to make people think that Representative Cushing is in some way pro worker? If you are I wish you the best in selling that.
I hadn’t read the bill, so I asked. Until Rex responded all there was on this forum was hyperbole.
My interest in Workers Comp goes back to when I started my business in the mid 1980’s. For the first two years the company’s only employees were my wife and myself. As the business started to grow and needed to add employees I came face to face with what currently was the mess called the Maine Workers Compensation System. Rates were off the chart high and so wasn’t fraud. For those who are screaming about fraud in welfare and unemployment today I suggest that they look back to the 1980’s workers comp system to see what real fraud looks like. The proverbial hangnail would be grounds for a 5 or in some cases even a 6 figure settlement. Back then there were leeches in the system just as some are accusing those on welfare today of slurping at the public troth. Back then it was lawyers, doctors, especially Chiropractors and Psychiatrists who would see a patient for as long as the insurance company paid. As soon as the insurer stopped paying the patient was miraculously cured. Most of these “doctors” left the State as soon as reforms in the system took place. Another thing the system had were “independent medical examiners”, doctors who only saw patients that were involved in the workers comp system. One in particular had an office that would put the oval office to shame and the funny thing was he never met a patient who was disabled. It seemed that everyone was gaming the system and the end result was that employers paid premiums that were so high that making a profit became an almost impossibility. Reform was needed and when it came it came fast and hard. So hard that it went way too far in favor of employers and their insurance carriers and virtually stripped employees of any rights. In order for any system to work it has to benefit both sides. The Maine Workers Comp System doesn’t. What Rep Cushing is suggesting will further erode workers rights under the law. When that happens don’t be surprised when some well meaning lawmakers get together and decide that the current system needs to be “reformed” to give workers more rights and we find ourselves exactly where we were in the mid 1980’s.
I believe ha also owns an insurance company that has something in this to benefit him and the company.
Which company please?
It’s the same one (can’t recall name ) that advertises (On TV) the ability for Mainers to purchase health insurance from an independent company rather than their employers or Anthem.
Let’s just give workers the right to sue in court again.
Let businesses and their Republican toadies find out what a jury of peers thinks an arm is worth, a leg is worth, an eye is worth, a working back is worth. After a few multi-million dollar awards, the Chamber of Commerce will be begging for fair and reasonable workers comp laws again.
Please identify a state that where WC allows lawsuits like you suggest? I believe you can’t since no state has such laws.
The only time you can sue outside of WC for an injury is if the employer knowing broke some other law such as handling illegal toxic substances as an example.
http://www.duncanlawonline.com/sue-employer-injured-work/
That sounds all fine and good but an appeals court would undoubtedly reduce any award.
Maine has TERRIBLE worker comp laws. In Maine the person injured has ZERO legal recourse. No ability to be heard in court. The whole system is 100 percent in favor of the insurance companies. If you work at a job you even think there is the smallest chance you could get hurt buy insurance on your own.
I don’t think you have an idea of how the process works. Your personal insurance would deny coverage based on the fact it was a job injury and MEMIC, the carrier I use has always been responsive. I think you have little knowledge of how the system works.
This is what the proposed law sets out to change!
What does it change can you be clear. All I hear are rants and it is tough to clear out the noise from whats real.
Read Rexicans link site for laymans terms on his ( MULTIPLE) proposal(S) for changes tp protecting the injured employe.
OK Writer provides a good synopsis of WC in Maine. Writer does not explain differences in Rep’s Cushing Bill from current law or the context of why Maine’s lowered premium rates came to be.
Go to the Legislative website and read his proposal(confusing as it may be).There has never been a bill proposed with this many attachments to it before!
If the writer is upset by the changes and doesn’t bother to mention what they are, what are we to think he is objecting to? He gave a little history and not much else. Silly commentary if you ask me.
Go read the bill!!You are beginning to sound sillier than the Ministry of Silly Walks!
If you think this bill has too many amendments chances are good you haven’t seen a tax bill go through congress.
I can tell you why Mr Cushing sponsored this bill . Ask him what his other job is and you will find the answer !
Sure just make it all the workers fault.Don’t hold an irresponsible employer responsible for unsafe situations… cause it must be the employee who is at fault for whatever happened.Then…keep things hidden from said employee (when the filing occurs – so the employee doesn’t know the clock is ticking and time is running out) . Then , take away any other help in costs to said employee for the injuries (ie:Mainecare after they have exhausted all their money fighting the insurance company)and God forbid , if they get a hangnail that must be the reason they can’t work – not the hand/foot/eye,etc. they may have lost in the incident at work!!
The pendulum has swung too far against the worker even before this bill. But remember when employers had to pay for workers’ lawyers to sue them? Most people in mill towns knew who Pat Mcteague was, but go to a non mill town such as Bangor and I doubt 1% would know. We need to find balance and try to keep the lawyers out of it.
McTeague ,Higbee is the BEST firm for protecting the innocent worker in Maine!And…the mill town (lumbering town that rebuilt Chicago after the Big Fire) that I come from is in Michigan! Fortunately McTeague,Higbee has allowed me to stay in my home and not go broke fighting a WC insurance company on my own!
Governor Brennan said, at that time, that WC was nothing but a retirement fund for lawyers, back in the go go 80s. WC should benefit workers only.
I rarely
comment, but this one hit close to home. While growing up in Maine I watched my
family business that employed 150 Maine people, close due to the high cost of
worker comp. In 1991, the state made an attempt to correct the workers comp
system, which took a state shut down because the extreme elements of both
parties could not agree. Sounds just like the crap the we’re seeing in
Washington today from both parties. We need a system that protects both the
worker and the business, but the only input we hear about now is from the far
left or the far right or from the Unions or Giant Corporations. The input we
need is from the majority of Maine workers who are not unionized and the
majority of Maine employers who are small businesses. There has to be some
middle ground that we can ALL stand on. While the extremist on both sides like
to claim that they represent the majority. The reality that we now live in is
that the 60% of the people in this state that are open minded and willing to
hear all sides of an issue before making a decision have been taken hostage by
the tea party and the occupiers.
It seems like
the main goal in my mind would be to establish a system that pays a worker for
an injury in a timely and fair manner while also protecting an employer from
fraud. A worker should never have to wait a year for any type of payment
related to their injury, but if you have a system that gives you 3 months to
report an injury, how can you not expect to have a business fight any claim.
Let’s all hope
that someone in Augusta can see through the politics and create a cost
effective and fair system for the benefit of everyone. This era of the
political extremes needs to end soon or we’ll ALL be in recession for ever.