RHODE ISLAND CREATES NEW FORMULA FOR WORKERS' COMPENSATION BENEFITS
On July 14, 2021, Rhode Island Governor Daniel McKee signed HB 6376. This Bill amends multiple laws relating to workers' compensation, including the creation of a new formula for determining a totally and partially disabled injured worker's weekly benefit entitlement for all injuries on or after January 1, 2022. It also eliminates the current ambiguity in an injured worker's entitlement, when he or she suffers a recurrence of disability.
The change is a significant change in how weekly benefits are calculated. We now will no longer use The Spendable Base Wage Tables to calculate the benefits due, which took into consideration the number exemptions an employee has to determine the Spendable Base Wage, and then paid the employee 75% of that amount. As of January 1, 2022, we simply take the AWW as determined by the 13 weeks before the injury and pay the employee 62% of that amount. The net effect is that the cost of weekly benefits will increase. The same calculation is done for total incapacity, except of course there is an additional $15/week per dependent for each week an employee is characterized as totally incapacitated.
An example of the effect of the change is as follows;
Presently
AWW $1,000, 1 exemption creates a spendable base wage of $783.42 (x.75) = $587.57 Weekly Rate
As of January 1, 2022
AWW $1,000 x .62 = $620 Weekly Rate
The same formula is used in determining varying benefits when an employee is working; we pay 62% of the difference between original AWW and current wage.
The new law also provides an enforcement mechanism for payments ordered in a Denial and Dismissal Settlement. The penalty for not paying the amount approved within 14 days is $100 / day for each day the payment is late. This is consistent with the statute regarding the payment of commutations.
Additionally, the court no longer has to ensure the interest of the Centers for Medicare and Medicaid Services (CMS) are protected in a Denial and Dismissal Settlement.
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UPDATED MAXIMUM AND MINIMUM WAGES EFFECTIVE
JULY 1, 2021:
NEW HAMPSHIRE:
The state's average weekly wage as well as the minimum and maximum compensation rates, effective July 1, 2021, are as follows:
• State's Average Weekly Wage = $1,243.36
• Minimum Weekly Compensation Rate = $373.01
• Maximum Weekly Compensation Rate = $1,865.00
MAINE:
The Department of Labor’s new State Average Weekly Wage (SAWW) as of July 1, 2021 is $984.00. The SAWW is the basis for calculating maximum benefits, annual adjustments and impairment awards.
The multiplier as of July 1, 2021 is 1.10644. This multiplier is obtained by dividing the new SAWW by the preceding year’s average weekly wage. There is no annual adjustment for injuries occurring on or after January 1, 1993. There is no adjustment for injuries occurring on or after November 20, 1987 during periods of partial incapacity. COLA applies for injuries occurring on or after January 1, 2021.
VERMONT:
The Vermont Department of Labor has announced new maximum and minimum weekly compensation rates effective July 1, 2021.
The new maximum rate is $1,542.00 (for DOIs after 6/30/1986) and the minimum rate is $514.00 (not including dependent’s benefits) for the year beginning July 1, 2021.
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NEW HAMPSHIRE DEPARTMENT OF LABOR REOPENS FOR IN-PERSON FIRST-LEVEL CONTESTED HEARINGS; EMAIL ADDRESSES FOR SPECIFIC REQUESTS
Starting the week of August 16, 2021, the Department of Labor Hearings Bureau will revert to pre-pandemic scheduling for first-level contested hearings.
In other words, all contested hearings will be held in person at the Department of Labor in Concord, NH. The parties, as they were able to prior to the pandemic, may request remote hearings pursuant to Lab 203.07. The Department has the ability to accommodate both telephonic and video hearings. These requests can come to the hearings bureau as assented requests or can come as a contested motion for a remote hearing.
Lump sum settlement hearings will remain telephonic unless the parties request an in person hearing.
Finally, a friendly reminder concerning emailing the Department of Labor with regards to pending hearing matters. Please use the scheduling department email, DOL.Scheduling@dol.nh.gov when filing the following requests:
- New Hearing Petitions;
- Responses to Director Albert;
- Submissions for hearing;
- Routine letters that the Department are copied on;
- Request to withdraw a hearing petition;
- Notice of Attorney availability/unavailability; and
- Letters of Representation.
- Motions related to hearings (assented and/or contested);
- Responses to Administrator Fuller’s correspondence;
- Request for telephonic/video hearing;
- CD audio requests; and
- Written closing arguments
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IT'S NOT TOO LATE TO REGISTER FOR OUR REMAINING TRAINING WEBINARS ON STATE-SPECIFIC PRACTICE AND PROCEDURES!
(THESE ARE VIDEO REPLAYS)
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If you'd like to attend
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There will also be a telephone link provided.
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We are closely monitoring the reopening of the courts in the other New England states, and will advise you accordingly as soon as we learn.
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TKCK is a workers' compensation and civil litigation firm handling cases in all six New England States (Massachusetts, Connecticut, Rhode Island, New Hampshire, Maine and Vermont) and at the Federal level for Longshore Harbor Workers’ Compensation Act and Defense Base Act claims.
We are approved panel counsel for most major insurers, including AIG, ACE/Chubb, Travelers, Liberty Mutual, Zurich, PMA, Utica, XL Specialty, Starr, The Hartford, CNA, Berkley, Acadia and others. We have longstanding partnerships with most major Third Party Administrators and Self-Insured Groups and we are designated counsel for many of the largest employers in New England.
Experience Matters. Results Count.
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CONTACT US:
Tentindo, Kendall, Canniff & Keefe LLP
510 Rutherford Avenue
Boston, MA 02129
(617) 242-9600 (phone)
(617) 242-0800 (fax)
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