Workers Compensation Newsletters

Arbitration and Mediation

Alternative dispute resolution (ADR) has come to play an increasing role in the resolution of workers' compensation disputes. Almost half the states now offer arbitration and/or mediation as viable ADR methods.

Employer's Consent to Settlement

In some instances, an injured employee may desire to enter into a settlement of his claim against the third-party tortfeasor. However, it has been generally held that if the employee fails to gain the employer's consent to such settlement that the employee thereafter gives up any claim to future compensation from the employer. It has been held that an employee cannot circumvent the consent requirement by adding language into the settlement papers to the effect that neither the employer's nor the carrier's rights are to be affected.

Proper Party to a Third Party Action

When an employer or its carrier (collectively "employer") pays workers' compensation for an employee's injury arising out of his employment but through the fault of a third party, the employer may step into the shoes of the employee as his "subrogee." When the action against the third party is completely subrogated to the employer, the only essential plaintiff to the action is the employer. This means, only the party who has been substituted for the employee is required to maintain the action against the third party and recover damages. The employee does not have to be a part of the action for it to remain viable.

Time Requirements Related to Occupational Diseases

With respect to occupational diseases, there are several applicable time restraints including the time between exposure and disability, minimum time periods for exposure, and minimum time periods for an employee's residency. These time requirements vary markedly by state. The limitations period for occupational disease claims also varies widely. Some states bar the receipt of death benefits unless the claim is brought within a specified time after exposure. The majority of states take the view that the limitations period does not begin to run until such time that the claimant had knowledge of his condition and its relationship to his employment. Still another viewpoint on the limitations period is that it begins to run when the employee has become disabled as a result of the disease and with reasonable diligence could discover that the condition is compensable.

Types of workers compensation laws

Applicability of the LHWCA requires that the situs and status tests be met, i.e. the injury must have occurred on United States navigable waters or adjoining area by a maritime worker as specified in the LHWCA. It appears that the LHWCA was conceived to fill a gap in workers' compensation coverage by providing benefits to those employees who were not injured on land, which would then be covered under the applicable state's Workers' Compensation Act. However, the expansion of the interpretation as to what is the "adjoining area" of navigable waters has allowed for conflicts of law questions to arise for maritime workers. Caselaw suggests that when the LHWCA does not clearly apply under the status and situs tests, each case will be examined on its own facts to determine the source of the injured employee's benefits. Notably, Louisiana denies state workers' compensation benefits to an employee who is covered by the LHWCA.