Workers’ Compensation System Reforms – HB 154

Background

• Workers’ compensation is a benefits program created by state law that provides

medical, rehabilitation, income, death and other benefits to employees and dependents

due to injury, illness and death resulting from a compensable work-related claim

covered by the law.

• Any injury, illness or death arising out of and in the course of employment is by

definition a compensable work-related claim. This means if employees are injured while

performing assigned job duties during assigned work hours, they are covered under the

workers’ compensation program. Injuries sustained while engaging in unassigned

duties, during lunch and breaks, are not covered. In addition, injuries that occur during

an employee’s normal commute to and from work are not covered.

• Workers’ compensation is the “exclusive remedy” a worker has against his/her

employer for damages resulting from an on-the-job injury.

• The law requires any business with three or more workers, including regular part-time

workers, to carry workers' compensation insurance.

• In Georgia, the workers’ compensation system is administered through a three-member

state board.

• Each year, the board works with an advisory council made up of representatives from

the business, medical, and legal communities to develop new policies and statutory

changes for improving the system. HB 154 is the product of last year’s council efforts.

Bill Summary

• Cap on medical benefits – Provides for a 400-week cap on medical benefits for non-

catastrophic injuries. Previously, there was no cap.

• Mileage payments – Requires payment of mileage to claimants within 15 days of

receipt. Currently this payment is due within 30 days.

• Interest on lump sum advances – Decreases the interest rate from 7 percent to 5

percent when a claimant receives advances prior to a settlement.

• Trial return to work period – Requires a minimum amount of time that a claimant must

attempt a suitable job during a 15-day trial return-to-work period. The employer may

suspend benefits if the claimant does not attempt the job – within limitations set by the

treating physician – for at least 8 hours or a scheduled work day, whichever is greater.

• Weekly income benefit – Increases the maximum weekly benefit by $25 to $525 per

week in 2013. This will remain one of the lowest benefit limits in the country.