HOUSE OF REPRESENTATIVES

H.B. NO.

679

TWENTY-EIGHTH LEGISLATURE, 2015

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to workers' compensation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that injured workers lack the incentive to return to part-time work because the law does not require employers to timely pay the injured workers temporary partial disability benefits.  When injured workers do not return to part-time work, the costs of doing business increase.  The legislature also finds that fourteen calendar days from the end of the customary work week to process temporary partial disability benefits is more than sufficient to process the benefits rightfully due and owed to injured workers.

     The legislature further finds that disabled workers are often unfairly denied disability benefits because their physicians do not complete and sign a specialized form that certifies that the injured worker is entitled to compensation.  In addition, temporary total disability and temporary partial disability benefits are treated differently under the law even though both types of benefits are deemed compensation under section 386-1, Hawaii Revised Statutes.

     The purpose of this Act is to:

     (1)  Create a late payment penalty to incentivize employers to timely disburse temporary partial disability benefits;

     (2)  Ensure that temporary total disability benefits and temporary partial disability benefits are treated in a manner that is consistent with the application of equal protection under the law; and

     (3)  Provide both a more uniform application of workers' compensation case law and statutory entitlements that are due to disabled employees.

     SECTION 2.  Section 386-92, Hawaii Revised Statutes, is amended to read as follows:

     "§386-92  Default in payments of compensation, penalty.  (a)  If any compensation payable under the terms of a final decision or judgment is not paid by a self-insured employer or an insurance carrier within thirty-one days after it becomes due, as provided by the final decision or judgment, or if any temporary total disability benefits are not paid by the employer or carrier within ten days, exclusive of Saturdays, Sundays, and holidays, after the employer or carrier has been notified of the disability, and where the right to benefits are not controverted in the employer's initial report of industrial injury or where temporary total disability benefits are terminated in violation of section 386-31, or if temporary partial disability benefits are not paid by the employer or insurance carrier within fourteen calendar days after the end of the employee's workweek as defined under section 12-10-1, Hawaii Administrative Rules, there shall be added to the unpaid compensation an amount equal to twenty per cent thereof payable at the same time as, but in addition to, the compensation, including any other applicable sanctions, unless the nonpayment is excused by the director after a showing by the employer or insurance carrier that the payment of the compensation could not be made on the date prescribed therefor owing to the conditions over which the employer or carrier had no control[.], including compliance with section 78-13 for a public employer.

     (b)  In addition to the compensation owed by the employer, the penalty imposed under subsection (a) shall be due and payable without the necessity of an order or decision from the director.

     (c)  An employee's eligibility for temporary total disability benefits or temporary partial disability benefits shall be determined by certification from the employee's primary care physician every thirty days or by an examination of the employee's available medical records by a physician who has been involved in the employee's treatment if the employee's primary care physician is not available.  The failure of an employee's primary care physician to certify the dates of disability in an interim report, as required under section 386-96, shall not disqualify the employee from receiving temporary total disability benefits or temporary partial disability benefits.  Contemporaneous certification of an employee's disability status may be waived and retroactive certification of disability can be allowed; provided that the disability is certified by the employee's primary care physician or another physician who has been involved in the employee's treatment and has an opportunity to examine the employee's previous medical records in the current pending claim.  Retroactive certification of disability may be requested for the entire claim.  This subsection shall apply only during the period that an employee's injuries have not reached medical stabilization or the employee is enrolled in the vocational rehabilitation process."

     SECTION 3.  New statutory material is underscored.


     SECTION 4.  This Act shall take effect upon its approval.


 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Workers' Compensation; Penalty; Temporary Partial Disability Benefits; Eligibility Determination

 

Description:

Imposes a penalty on an employer who does not pay an employee temporary partial disability benefits within fourteen calendar days after the end of the employee's workweek as defined by administrative rule.  Clarifies that an eligibility determination for disability benefits depends on the primary care physician to certify the employee's disability.  Clarifies that the failure of the employee's primary care physician to certify the dates of disability in an interim report does not disqualify the employee from disability benefits.  Allows contemporaneous certification of an employee's disability status to be waived.  Clarifies that certification requirements only apply during the period that an employee's injuries have not reach medical stabilization or the employee is enrolled in the vocational rehabilitation process.

 

 

 

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