IIAW COVID-19 ALERT

WI State Assembly Passes COVID-19 Relief Bill

The Wisconsin State Assembly passed a COVID-19 Relief Bill which includes implications for worker's compensation insurance, tax conformity on small business loans, civil immunity for certain sectors and more. The Senate will vote either Wednesday or Thursday of this week with Governor Evers expecte d to sign  shortly after.

Impact on Worker's Compensation, Small Business Loans and Civil Immunity
Worker's Compensation
This bill provides that, for the purposes of worker's compensation, an injury caused to a "first responder", during any public health emergency declared by the governor on March 12, 2020, by executive order 72 and ending 30 days after the termination of the order, is presumed to be caused by the individual's employment. The presumption requires a diagnosis or positive test for COVID-19, the employee must have been exposed to persons with confirmed cases of COVID-19 in the course of employment, and the presumption may be rebutted by specific evidence that the injury was caused outside of employment.

Tax Conformity for Small Business Loans
This proposal also will conform state law to federal law regarding the treatment of paycheck protection loans to business and employees under the small business administration's loan guarantee program for the period of time from February 15, 2020 through June 30, 2020. A portion of the loans may be forgiven on a tax-free basis under certain conditions.

Civil Immunity
There is also civil immunity from liability throughout for healthcare workers, nursing homes, assisted living facilities, charitable organizations and manufacturers that provide supplies and medical equipment for COVID-19.
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The legislation passed the Assembly on a 97-2 vote

The provision ( Section 33 and Section 34) states that for the purposes of worker's compensation benefits, an injury to a "first responder" found to be caused by COVID-19 during the public health emergency declared by Governor Evers on March 12, 2020, by Executive Order 72, and ending 30 days after the termination of the order, is presumed to be caused by the individual's employment. An injury claimed under this provision: a) must be accompanied by a specific diagnosis by a physician or by a positive COVID-19 test; and
b) the employee must have been exposed to persons with confirmed cases of COVID-19 in the course of employment; and c) may be rebutted by specific evidence that the injury was caused by exposure to COVID-19 outside of the first responder's work for the employer.
 
"First responder" is broadly defined as an employee of, or volunteer for, an employer that provides firefighting, law enforcement, medical, or other emergency services, and who has regular, direct contact with, or is regularly in close proximity to, patients or other members of the public requiring emergency services within the scope of the individual's work for the employer.
 
Generally, worker's compensation law in Wisconsin allows compensation for cases of death or injury in the course of employment. Current law defines "injury" as mental or physical harm to an employee caused by accident or disease. This provision would establish that any injuries or deaths to employees or volunteers in the occupations listed, and that are caused by COVID-19 during the period specified, would be presumed to be caused by the individual's employment. Although the provision specifically applies to first responders, current law would not preclude worker's compensation claims from persons in other occupations who are exposed to the novel coronavirus in the course of their employment. However, claims for employees in other occupations not listed would have to establish an injury or death related to COVID-19 was a result of employment.

An important notation on the state public health emergency declaration...
 
If the Governor determines that a public health emergency exists, he or she may issue an executive order declaring a state of emergency related to public health for the state or any portion of the state and may designate the Department of Health Services (DHS) as the lead state agency to respond to that emergency. On March 12, 2020, Governor Evers declared a public health emergency in response to the COVID-19 pandemic and designated DHS as the lead agency to respond to the emergency in Executive Order 72. By law, a state of emergency declared by the Governor may not exceed 60 days, except that it may be extended by joint resolution of the Legislature by a simple majority in both houses. The executive order may also be revoked at any time by the Governor by executive order or by the Legislature by joint resolution.
 
It has yet to be determined whether or not the Wisconsin legislature will revoke or extend the public health state of emergency after May 11, 2020, which is when it is set to expire.

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Respectfully,
  
IIAW 
Independent Insurance Agents of Wisconsin