Richard Lenkov to Speak at Seminar

 

             Richard Lenkov has been invited to speak at the 25^th Annual National Workers’ Compensation and Occupational Medicine Conference, July 19-21, 2005, in Cape Cod, Massachusetts.  Richard will present “Reducing Litigation Costs: An Insider’s View on What You Can Do to Eliminate/ Reduce Legal Fees and Costs.”  Richard will discuss how to obtain maximum results from your attorney in a minimal amount of time. If you are interesting in attending, please visit www.seak.com.

 

Illinois House Bill 805

 

             In Illinois, business and labor have been negotiating to change the state’s workers’ compensation law.  Their proposal has been submitted to the Illinois House of Representatives, which recommended the following changes to the Workers’ Compensation Act. 

 

             Employees would be covered by the Workers' Compensation Act if the injury were the result of a terrorist attack.

 

             The employer would pay medical charges incurred within 60 days or the employer would pay an additional penalty of 1% per month.

 

             A conviction of workers’ compensation insurance fraud would make an employee or former employee ineligible to receive compensation.

 

             Employers would be penalized for failure to carry insurance.  The monies collected would be placed into newly created Injured Workers Benefit Fund. If the employer has no workers' compensation insurance coverage and has failed to pay the injured employee due benefits, the Industrial Commission could use monies in the Fund for that purpose.

 

             A medical fee advisory board would be created to advise the Commission on fees.  The board would include employees, employers and medical providers, all appointed by the governor. 

 

             A medical fee schedule would be created that carries a maximum allowable usual and customary charges for procedures, treatments, or services set at 90% of the 80% percentile of charges and fees.  The employer would pay the lesser of the health care provider's actual charges or the established usual and customary charges.

 

             If an employer does not provide workers’ compensation insurance, the employer could be found guilty of a Class A misdemeanor and subject to civil action under state law. 

 

             The Workers’ Compensation Commission would be permitted to issue a work-stop order on an employer not carrying workers' compensation insurance.

 

             A medical provider would not be allowed to bill the employee for outstanding charges not paid by an insurance company or employer.

 

             If the employee requests payment of benefits and 14 days has elapsed and no payment has been made, the employer would be liable for $30 per day for each day the employer refuses payment.  In addition, the employer would be liable for litigation costs up to a maximum of $16,425.

Overtime would now be included in the calculation of average weekly wages. 

Permanent partial disability would increase from 60% to 66 2/3% of the employee’s average weekly wage.

 

             The law that bases minimum compensation rates on marital status would be eliminated and replaced with a flat increase of 10% for each spouse and child, not to exceed 100% of total wage calculation.

Vocational rehabilitation would include job counseling, supervising a job search and retraining at an accredited university.

 

             Reactions. The Illinois Municipal League is urging a "no" vote on the legislation, saying it would be detrimental to municipal employers. It argues the measure would increase costs.  Other opponents to the bill include Bridgestone, Caterpillar, Chicago Board of Education, City of Chicago, United Airlines, NICOR, Illinois Chamber of Commerce and Ford Motor Company, just to name a few.

 

             Conversely, this bill is reportedly being supported by the Illinois Manufacturers' Association, Illinois Retail Merchants Association, National Federation of Independent Business, Illinois Insurance Association, Sears, Abbott Labs, Commonwealth Edison, Exelon Generation, Liberty Mutual Insurance Company and AIG Insurance Company.  According to the Illinois Manufacturers’ Association, the bill “provides benefit adjustments for employees and cost savings for employers”.

 

             Stay tuned.  The bill has not been finalized and has gone through several revisions.  The Illinois Senate Rules Committee is reviewing the measure and action on this bill is expected in the 2005 session.

 

             We will keep you updated on the on the status of this bill. 

 

Vocational Rehabilitation

 

             The courts are now looking for employers to offer vocational rehabilitation to their workers.  As an example, in Roper Contracting v. Industrial Commission, 349 Ill. App. 3d 500 (2004), the Illinois Appellate Court held that a claimant is not required to make a formal request to the employer for vocational rehabilitation before the claimant is entitled to maintenance benefits.  The court expects the employer to become more proactive and explain and offer vocational rehabilitation to the employee in order that the employee is better informed. 

 

             Also, if a claimant initiates a job search on his own, the search qualifies as vocational rehabilitation.  The employer incurs the costs of vocational rehabilitation, which may include the costs of instruction and training necessary for physical, mental and vocational rehabilitation of the employee.  These costs may also include maintenance and incidental expenses. 

 

             Please note that a claimant is entitled to vocational rehabilitation where the claimant’s work related injury causes a reduction to his earning power and the rehabilitation will increase the earning power.

 

             As the courts continue to review and make changes relative to vocational rehabilitation, we will advise you accordingly.

Worker’s Compensation

UPDATE

The attorneys at BryceDowney constantly strive to keep you updated regarding the latest developments in Illinois and Indiana workers’ compensation law. If you would like more information on any of the topics discussed above, or have any questions regarding these issues or any aspect of Illinois and Indiana Workers’ Compensation Law, please contact Richard Lenkov at (312) 327-0032 or rlenkov@brycedowney.com, or any member of our workers’ compensation team.© Copyright 2005 by BryceDowney, LLC, all rights reserved.  Reproduction in any other publication or quotation is forbidden without express written permission of copyright owner.

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