2016 Georgia General Assembly Approves Three Bills Modifying Provisions of the Workers’ Compensation Act

A few weeks ago, the 2016 session of the Georgia General Assembly closed, passing three bills that revise portions of the Georgia Workers’ Compensation Act: House Bill 818, House Bill 402, and House Bill 216. All of the changes in the law take effect on July 1, 2016.

1. Change in Benefit Rates

House Bill 818 increased the maximum amount of both Temporary Total Disability (TTD) and Temporary Partial Disability (TPD) benefits. For all accidents occurring on or after July 1, 2016, the new maximum TTD rate is $575.00 per week. The new maximum TPD rate is $383.00 per week.

2. Change in Death Benefits

House Bill 818 also amended O.C.G.A. § 34-9-265(d) to increase the maximum compensation payable to a surviving spouse as a sole dependent at the time of the employee’s work-related death from $220,000 to $230,000.00 for deaths occurring on or after July 1, 2016.

3. Changes in qualifications for self-insured status and the Self-Insured Guaranty Trust Fund

House Bill 818 also clarified the State Board’s authority to grant or deny self-insurance status based upon the applicant’s exposure, liability, and financial ability to pay. This bill was enacted to clarify which applicants are truly qualified for coverage under the Georgia Self-Insurers Guaranty Trust Fund in the event of insolvency and to achieve consistency in the definition of certain terms.

O.C.G.A. § 34-9-121(a) was revised to state a self-insured employer must “provide the board with sufficient information for the board to make an adequate assessment of the employer’s workers’ compensation exposure and liabilities and shall further provide evidence satisfactory to the board of such employer’s financial ability to pay the compensation directly in the amount and manner and when due.”

Revisions to O.C.G.A. § 34-9-381 further clarified the definitions relative to the Self-Insurers Guaranty Trust Fund. These new definitions include the exclusion of Professional Employment Organizations (PEOs), Assigned Staffing Organizations (ASOs), or similar entities from the definition of “self-insurers” to the extent such organizations would not qualify for acceptance into the Self-Insured Guaranty Trust Fund.

4. Encouragement of Work-Based Learning Program

House Bill 402 was enacted to encourage employers to provide work-based learning opportunities for students 16 and older. So far, the program has been a success in preparing students who not acquire post-secondary education into the workforce. Effective July 1, 2016, pursuant to O.C.G.A. § 34-9-40.3, certification as a work-based learning employer, and notification of such certification to the insurer provides for an optional premium reduction of up to five (5) percent. The premium discount provided is applied pro rata as of the date the insured receives such notification and shall continue as long as the insured maintains certification.

House Bill 402 also amended the Workers’ Compensation Act to add new code sections under O.C.G.A. § 34-9-2.4, O.C.G.A. § 34-9-430, and O.C.G.A. § 34-9-431 to further define “work-based learning placement,” a “work-based learning student,” and a “work-based learning employer.” A work-based learning employer must enter a training agreement with one or more work-based learning student(s), develop a training plan in conjunction with a school’s work-based learning coordinator, assign a mentor to the work-based learning student, and provide workers’ compensation insurance for the work-based learning student. Under an associated revision to O.C.G.A. § 34-9-432, self-insured employers can qualify for the premium discount if they comply with O.C.G.A. § 34-9-431, and all other provisions of the article.

5. Right to compensation for firefighters diagnosed with cancer

House Bill 216 was enacted to amend O.C.G.A. § 34-9-280, the occupational disease statute, in order to allow firefighters, the opportunity to pursue and to receive workers’ compensation benefits if they have been diagnosed with cancer. As originally proposed, the Bill would have provided a presumption to firefighters for certain listed diseases. However, that version did not have enough support. A compromise effort shifted the presumption to a preponderance of evidence, limited the scope of diseases to cancer, and applied only to firefighters. In the Senate Insurance Committee, and on the Senate floor debate, there was an effort to expand the scope of the exception to all employees (not just firefighters), to all diseases (not just cancer), but with a higher standard of proof of clear and convincing evidence. That also did not have enough support, so the carve-out exception that will become law on July 1, 2016 is limited to firefighters, to cancer, and by a preponderance of the evidence.

Cancer was previously considered an ordinary disease of life, which was excluded from coverage as an occupational disease under O.C.G.A. § 34-9-280(d). The added language, however, provides an exception for firefighters. This exception specifically allows a firefighter to secure workers’ compensation benefits upon showing by a preponderance of evidence, including medical evidence, that a cancer diagnosis is attributable to the firefighter’s performance of his or her duties as a firefighter.

Summary

With most revisions to the Workers’ Compensation Act, the General Assembly is usually voting to approve changes that come from the Chairman’s Advisory Council.  Interestingly, there was much more debate than usual on the firefighter issue.

If you have any questions regarding these changes and/or any other issues, please feel free to call me or any other member of the Workers’ Compensation team at Goodman McGuffey LLP.