Tag Archives: employment law

Why it matters how your employer insures for workers’ compensation

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Does it matter whether workers’ compensation benefits are paid directly by an employer or by an insurance company? I think it does.

Here is what injured workers should know about self-insured employers in Nebraska and how self-insurance can affect their workers’ compensation claim.

What is self-insurance?

Self-insurance means an employer pays workers compensation benefits directly from company funds. Typically an employer pays premiums to an insurer who pays out benefits.

Because self-insureds bear the entire cost of a work injury they tend to be more hands on in managing workers compensation claims. Many self-insurers have internal workers compensation coordinators who communicate with doctors and go to medical appointments with workers.

How to know if your employer self-insured for workers compensation?

You can skip to the end of this post and check. You can also call the Nebraska Workers’ Compensation Court at 402-471-6468. But if you are calling an someone in a risk management department at your employer about benefits, your employer is probably self-insured

Some self-insureds contract out to third-party administrators such as Gallagher Bassett and Sedgwick. (Sedgwick was criticized for giving Iowa Governor Kim Reynolds a ride to an Iowa State bowl game in a company jet.)

How does self-insurance effect your claim?

Most employers who are self-insured for workers compensation are also self-insured for health insurance. Typically, health insurance will shift the costs of work injuries onto workers compensation insurance. But when an employer is paying for both health and workers compensation insurance, employers will try to shift the cost to the least expensive form of insurance. Usually it costs the employer more to pay through workers compensation than it would through health insurance.

More importantly employees often incur significant out of pocket costs of injuries are shifted onto health insurance.

Self-insurance may also impact settlement value. Any employer that is self-insured for both workers’ compensation and health insurance typically values future medical benefits less than an insurance company. Self-insureds argue that they will bear the cost of the injury either through workers’ compensation or health insurance.

Interaction with employment law

As mentioned earlier, self-insureds tend to be more hands on in managing claims. I believe this can make such employers more vulnerable to retaliation claims as terminations are often used as an excuse to reduce or not pay workers’ compensation benefits. Self-insureds are also more apt to ask for so-called global releases of workers’ compensation and employment law claims. Global releases often require the employee to resign their employment. Often times a resignation is the only way that an employee can get fair settlement value for future medical care if they are employed with a self-insured.

Differences in regulation

Workers compensation insurance is regulated by the Nebraska Department of Insurance. Self-insureds are subject to regulation by the Nebraska Workers’ Compensation Court. The court regulates both claims practices and the solvency of self-insureds at NWCC Rules 69-76.

The risk of bankruptcy is another important difference between self-insureds and employers who carry outside insurance. If an employer goes bankrupt, the employee is still covered by workers’ compensation insurance. If a workers’ compensation insurer goes bankrupt, then a guaranty fund should pick up coverage. But if a self-insured goes bankrupt, the injured worker is less likely to get full compensation.

Who is self-insured for workers’ compensation in Nebraska?

Here is a list of approved self-insureds from the Nebraska Workers Compensation Court.

 

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in Nebraska, Workers' Compensation and tagged , , , , .

Settling a workers’ compensation and wrongful termination case at the same time

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Many employers want to settle all employment-related claims when they settle a workers’ compensation case

Clients often ask me, “If I settle my workers’ compensation case, can I still sue my employer for wrongful termination?” My answer is almost always yes. But for one unfortunate employee in Louisiana, it appears settling their workers’ compensation case may have doomed their wrongful termination case.

A federal district court in Louisiana held that a worker who settled their workers’ compensation case with a release that released all claims arising from their work injury was deemed to have settled their wrongful termination case under various civil rights laws.

The Louisiana decision raised the ire of some employee-side attorneys. Workers’ compensation laws and civil rights laws provide different remedies for different harms. A Minnesota court recently used this fundamental tenet of law to hold that a disability discrimination claim under their state’s civil rights laws was not barred by the exclusive remedy provision of their state’s workers’ compensation act.

But as a practical matter, some employers like to settle all claims arising out of the employment relationship when they settle a workers’ compensation case. In these cases there is usually consideration, or seperate amounts, to settle the workers’ compensation claim and the employment law claim. Sometimes this can be advantageous for a client. I am not sure of how the release was structured in the Louisiana case, but here is how I structure so-called global releases. In short, you need two releases: one for the workers’ compensation claim and one for the wrongful termination case.

Settling the workers’ compensation case

I wrote earlier about the so-called exclusive remedy of workers’ compensation. In Nebraska, that exclusive remedy also means the workers’ compensation court has limited jurisdiction. Nebraska courts have stated repeatedly that the Nebraska Workers’ Compensation Court can not adjudicate employment law cases because they are a court of limited jurisdiction. Neb. Rev. Stat. §48-139 gives the court jurisdiction over workers’ compensation settlements. 48-139 also dictates the language of workers’ compensation settlements, states when settlements must be approved by the court and mandates the filing of settlement papers with the court. In short, if the Nebraska Workers’ Compensation Court does not have jurisdiction to hear a wrongful termination or discrimination case, any settlements in that court should not effect any wrongful termination case or discrimination case.

Settling the wrongful termination or discrimination case

A settlement agreement in a wrongful termination case is a different document. Usually there is no requirement that it be filed or approved by a court. These agreements are often synonymous with severance agreements and oftentimes included language required by the Older Workers’ Benefit Protection Act if the employee is over 40 years old.

Settlement agreements in employment cases usually also talk mention tax liability. Tax liability is usually not mentioned in a workers’ compensation settlement as workers’ compensation benefits are almost never taxed. But settlement proceeds in a wrongful termination or discrimination case are usually taxable and those agreements should include some discussion of tax liability.

Sometimes employers will want a resignation as a condition of paying a settlement to an injured employee. If the employee is still working, that provision can be a deal breaker. But for an employee who has been terminated the extra money for a wrongful termination claim can be beneficial. Settling all claims at once may also help an employee minimize taxes by apportioning the majority of the value of the severance or employmennt law settlement into the non-taxable workers’ compensation settlement.

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in employment law, Nebraska, Workers Compensation and tagged , , , , , .

Theodore Roosevelt Pushed For Protection Of Workers

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Workers’ Compensation benefits are often confusing and seemingly unfair at first glance to many of my clients. As a result, I often find myself explaining to these clients how we, as a country, got to where we are with workers’ compensation laws and why the benefits are more limited than other civil lawsuits.

In explaining work comp laws, I usually give a brief description of the work comp system that was first developed in the early 20th century and a description of the “Grand Bargain”, the premise that employers pay for some benefits of their injured employees in exchange that the employee cannot sue that employer for negligence in civil court.

I, and many scholars, could go on and on about the history of the Grand Bargain and how it was strengthened/reworked in the 1970’s. Also, scholars can (and have), go on about the recent “reform” to workers’ compensation laws that have eroded workers’ rights in domino-fashion in many states by anti-worker legislation.

Nevertheless, I think the most poignant description of why we need to protect workers, and continue to protect workers, is this quote from our 26th president, Theodore Roosevelt, in calling for further reform of laws that Congress passed for employers’ liability laws:

In spite of all precautions exercised by employers there are unavoidable accidents and even deaths involved in nearly every line of business connected with the mechanic arts. This inevitable sacrifice of life may be reduced to a minimum, but it can not be completely eliminated. It is a great social injustice to compel the employee, or rather the family of the killed or disabled victim, to bear the entire burden of such an inevitable sacrifice. In other words, society shirks its duty by laying the whole cost on the victim, whereas the injury comes from what may be called the legitimate risks of the trade. Compensation for accidents or deaths due in any line of industry to the actual conditions under which that industry is carried on, should be paid by that portion of the community for the benefit of which the industry is carried on–that is, by those who profit by the industry. If the entire trade risk is placed upon the employer he will promptly and properly add it to the legitimate cost of production and assess it proportionately upon the consumers of his commodity. It is therefore clear to my mind that the law should place this entire “risk of a trade” upon the employer. Neither the Federal law, nor, as far as I am informed, the State laws dealing with the question of employers’ liability are sufficiently thorogoing.

— Theodore Roosevelt: Sixth Annual Message, December 3, 1906.

 

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in Government, Legislation, Workers' Compensation and tagged , , .

What is the Most Common Mistake People Make When They File for Unemployment?

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Cooperating with the unemployment claims adjudicator can help you get benefits.

Answer your phone.

This is the advice a friend of mine who works as an unemployment claims adjudicator would give to people filing unemployment. Oftentimes people are denied unemployment benefits they earned through their employer because they neglect to cooperate in the initial investigation of their claim. An adjudicator is assigned to determine eligibility for unemployment benefits. In short, they talk to you and your employer about why you are no longer employed. If the adjudicator determines that your were fired for intentionally disregarding reasonable work-related expectations of your employer or that you quit without good cause, then you will be found not to be eligible for unemployment benefits. Of course, you can appeal that decision, but that will lead to a delay in you receiving benefits, and it might also mean finding a lawyer to represent you in the appeal hearing.

The problem someone creates for themselves when they don’t talk to the adjudicator is that the adjudicator will only hear the employer’s side of the story. If an employee has documents that would show they did not commit work-related misconduct or that they quit with good cause, they should give those to the adjudicator as well.

Unemployment is stressful. Failing to communicate with people who might be able to help you just makes matters worse for yourself and family.

The offices of Rehm, Bennett, Moore & Rehm, which also sponsors the Trucker Lawyers website, are located in Lincoln and Omaha, Nebraska. Five attorneys represent plaintiffs in workers’ compensation, personal injury, employment and Social Security disability claims. The firm’s lawyers have combined experience of more than 95 years of practice representing injured workers and truck drivers in Nebraska, Iowa and other states with Nebraska and Iowa jurisdiction. The lawyers regularly represent hurt truck drivers and often sue Crete Carrier Corporation, K&B Trucking, Werner Enterprises, UPS, and FedEx. Lawyers in the firm hold licenses in Nebraska and Iowa and are active in groups such as the College of Workers’ Compensation Lawyers, Workers' Injury Law & Advocacy Group (WILG), American Association for Justice (AAJ), the Nebraska Association of Trial Attorneys (NATA), and the American Board of Trial Advocates (ABOTA). We have the knowledge, experience and toughness to win rightful compensation for people who have been injured or mistreated.

This entry was posted in getting fired, quitting, Unemployment, unemployment benefits, unemployment claims adjudicator and tagged .