Amended workers’ comp bills target employers with additional penalties and requirements

Changes to two workers’ comp bills bring a mix of relief and new rules for employers around the state.

HB 2409 keeps its designation as a “bad bill.” An adopted striker amendment failed to bring relief to self-insured employers and instead introduced several additional pain points for these organizations.

The amended bill:

• Contains all previous penalty increases including a “per occurrence” multiplier on self-insurers;
• Takes the “Insurance Fair Conduct Act” sections and expands its reach to self-insurers and self-insured representatives;
• Mandates that all self-insured third-party administrators (TPA) register with the Department of Labor & Industries (L&I); and
• Requires all claim handlers whether self-administered, TPA-administered, in-state, or out-of-state get certified with L&I.

AWC continues to work with our partners and legislators to fight this bill as it is currently drafted. We are working to find areas of compromise. HB 2409 passed out of committee and now awaits a vote of the Senate.

Self-insured employer representatives have been working with Sen. Steve Hobbs (D–Lake Stevens) and Sen. Curtis King (R–Yakima) on a compromise amendment that would:

• Simply double the existing penalty amounts (since they haven't been updated in a while);
• Align the TPA certification requirement with recently adopted L&I rules;
• Remove the per-occurrence penalty provisions; and
• Remove the "Insurance Fair Conduct Act" that creates extensive new liability for self-insured employers.

Self-insured cities should reach out to your senators immediately and urge them to support the amendment by Sens. Hobbs and King when the bill comes up for a vote.

For the other bill we are reporting on, SB 6440 looks much better for insurance medical examinations (IME) after amendments were made in committee. The most notable change to the bill is a delay in its effective day until a workgroup is formed and rules are developed for regulating IMEs. A report from the workgroup to the Legislature is due by December 11, 2020.

SB 6440 passed out of committee and now awaits a vote of the House of Representatives.