3 Critical Labor Legislative Movements NCCI Watch: Risk and Insurance

From single-payer health care to medical marijuana reimbursement, these are the legislative trends that payers should watch.

This month, the NCCI released a new report examining three notable state legislative trends that may affect the workers compensation industry.

The report is a follow-up to the organization in January.Legislative Directions – Questions to Consider in 2022“The report highlights three of the most important risks.

Notably absent from the June list: litigation or laws about assumptions related to the COVID-19 pandemic.

As the virus spirals into a pandemic and fades into the backsight of many, workers compensation professionals are focusing on new legal trends or re-engaging with legislative trends that may have fallen to the side as state governments have focused on the pandemic.

Here is a look at the three risks highlighted by NCCI in “Focus on three: Key legislative trends in workers compensation” Report.

1) Independent contractors and the labor economy

Back in 2019, California became the first state to pass a bill providing guidance on how businesses determine whether they Workers are contractors or independent employeesThus, they are entitled to workers compensation benefits.

The law, Assembly Bill 5, established the ABC test for workers. According to this test, a worker is considered an employee unless: is free from the directives of the hiring entity, performs work outside the usual course of business of the hiring company, and usually performs work of the same nature for which they are hired.

Now, more than two years after the law went into effect, other countries are considering similar legislation.

Rhode Island has introduced legislation that would create a similar three-part test, and Vermont is considering creating its own multi-pronged test to determine if a worker is an employee or an independent contractor, although the initial invoice did not advance this hearing, NCCI reported.

These bills, which typically target app-based services like Uber, Lyft and Doordash, are meant to prevent misclassifications that lead to shortages. Workers’ compensation benefits And the State tax revenue.

But some countries create protections for services instead of workers.

Both Alabama and South Dakota have passed laws mandating that drivers of these platforms are independent contractors, according to the NCCI.

As the debate continues over who to call temporary job workers, we’ll likely see more states setting their quotas.

2) Single-payer healthcare

The debate over whether to implement single-payer health care at the federal or state level is not new. But now four states are examining how a single payer policy might affect the workers’ compensation system.

The NCCI reports that Kansas, Rhode Island, California and New York are all considering individual-driven health care proposals that include language about how the new system will affect workers’ companies.

Below is a breakdown for each country:

New York A 6058 The new board of the state’s single-payer health care program will require it to develop a proposal for how it would fund services covered by workers’ compensation laws.

H 8119 and S 2769 in Rhode Island The new director of the State One Payer Program will require the development of procedures to accommodate workers’ comp caps.

KS HB 2459which did not present this hearing, would have asked the UHC board of directors to come up with proposals for how to handle workers’ comp claims by July 1, 2024.

like Kansas and New York, AB 1400 in California He was going to ask the board of a new single payer scheme to come up with a proposal on how to handle workers’ compensation claims. This bill was not put to a vote in the council chamber, rendering it a failure of this legislative session.

3) Legalization of marijuana

As long as the countries continue Legalization of medical and recreational marijuana Real estate will remain a hot topic in workers compensation.

This year, Delaware, Missouri and New Hampshire submitted proposals to legalize recreational, and Maryland passed legislation amending the state constitution that would allow voters to decide whether or not to legalize recreational cannabis in their next election.

For payers, the crux of the issue is whether or not workers’ comp insurers are required to compensate injured workers for the property.

South Dakota, Mississippi and Rhode Island have passed legislation specifying that taxpayers are not required to reimburse the property, the NCCI reports. Maine, Nebraska, and Kentucky are considering similar proposals.

On the other hand, New Jersey and New York are considering passing laws requiring reimbursement.

This case has also been brought before the courts. Superior courts in New Hampshire and New Jersey have said reimbursement is required. On the flip side, the Supreme Courts of Massachusetts and Minnesota have ruled that reimbursement is not required.

Currently, two cases, Bierbach vs. Digger’s Polaris and State Auto / United Fire & Casualty Group And the Mosta vs. Mendota Heights Dental Center and Hartford Insurance Groupunder consideration by the Supreme Court, are asking judges to decide whether medical marijuana damages should be paid under workers compensation. &

Courtney Duchenne is an associate editor at Risk & Insurance. It can be accessed at [email protected]