Workers Compensation - Washington

Tara Reck, Managing L&I Attorney at Reck Law PLLC - Workers' Compensation Attorneys

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Workers Compensation Appeals and the Board of Industrial Insurance Appeals (BIIA)

Many people with a work injury claim or L&I claim reach out to me during their workers’ compensation appeal. The Board of Industrial Insurance Appeals (also known as BIIA or the Board) is the first establishment for a workers’ compensation claim appeal in Washington State.

 

About the Board of Industrial Insurance Appeals

The Board of Industrial Insurance Appeals is the state agency that hears workers compensation claim disputes. The Board is entirely separate from the Department of Labor and Industries (L&I). Said differently, the BIIA and L&I are not the same agency.

 

When L&I makes a written decision, any party can appeal the decision to the Board. For me, I’m often involved in disputes over decisions that relate to an industrial injury or occupational disease. However, the Board hears other kinds of disputes too. For example, these include safety citations under Washington Industrial Safety and Health Act (or WISHA). Another example is disputes over employer premium assessment and classification.

 

The BIIA is led by 3 full-time members. The Washington State governor appoints each member for 6 year overlapping terms. More explicitly, each member represents a different sector with vested interest in workers’ compensation matters. One member represents the public. Then, the second member represents the labor force. Finally, the third member is a business representative. Ultimately, the three members of the BIIA are responsible for making the final decision in every dispute. In addition, these members manage the agency as an organization.

 

Workers compensation appeals: Steps in the appeal process

When L&I makes a decision in writing, if either party disagrees with the decision, that party can appeal it to the BIIA. The disputing party must file the appeal within 60 days since they received the decision from L&I. The easiest and most efficient way to file an appeal is through the Board’s website.

 

 

Like any hearing agency or court, the Board has its own legal ground rules that govern workers compensation appeals. These practice and procedure rules apply to all parties (regardless of whether a party is represented by an attorney). When the Board receives an appeal, it assigns a docket number. Then, it notifies the parties and sends a copy of the appeal to L&I. Once L&I knows there has been an appeal, it has three options: (1) It can notify the BIIA that it is going to reconsider the decision; (2) L&I can change or reverse the decision; or (3) it can send its record to the BIIA so the appeal can proceed. For timing, L&I has 60 days to exercise one of these three steps.

 

L&I claim and workers compensation appeals: Jurisdiction

If L&I decides to change or reconsider a decision, then the BIIA returns the appeal to L&I for further action. However, if L&I does not, the Board decides if it has jurisdiction or the right to hear the appeal. If it doesn’t, then the Board issues an Order Denying Appeal. If it does, the Board issues an Order Granting Appeal. Furthermore, accompanying that order is a Jurisdictional History. This is as very useful document containing a timeline of the workers compensation claim decisions. This document establishes that the BIIA can indeed hear the appeal. Generally speaking, I ask to see this document every time a work injury claimant contacts me for an L&I claim appeal.

 

The BIIA mediation for L&I claim appeals

After an appeal is granted, the Board schedules a mediation. Usually, if all parties have an attorney, then meditation occurs over the telephone. When possible, if one (or both) parties do not have legal representation, then the mediation happens in person. Mediation at the Board is somewhat informal. During mediation, a Board Judge discusses the issues and helps the parties talk about possible resolution, without litigation.

 

The mediation process is confidential. If the parties reach resolution in mediation, it can save litigation expenses and any further delays. Otherwise, the case is sent on to the hearings phase. The hearing judge hosts a conference to establish litigation deadlines. These deadlines include hearing dates and witness confirmation dates. Moreover, they include discovery cutoff dates, motion hearing dates, and testimony completion dates. All these dates are put in a litigation order, which they send to the parties.

 

Burden of proof in workers’ compensation claim appeals

The appealing party has the burden of proving that the L&I claim decision under appeal is incorrect. Practically speaking, meeting the burden of proof requires a medical expert testimony for most issues work injury and work illness matters. Somewhat surprising, the parties don’t have to have an attorney in L&I claim appeals. However, once the appeal proceeds to hearing (and according to the Board):

“The appealing party should consider finding an attorney. An experienced attorney will represent L&I or the self-insured employer. An attorney can negotiate with the opposing parties, help obtain necessary witnesses, and make objections”.

 

My personal opinion

I agree with the BIIA’s position. Attorneys with significant litigation experience know how to play by the ground rules. On top, they understand the evidence to meet the burden of proof. Failing to present sufficient evidence in a Board appeal will result in an unfavorable decision. Even worse, it’s difficult if not impossible to fix insufficient evidence once the record closes at the Board.

 

The record becomes the certified record of the case for any further appeals to higher courts. Finally, from there on, there’s no opportunity to present new, more, or better evidence. More detailed information about L&I claim appeals can be found on the Board website at http://www.biia.wa.gov/AppealSteps.html.

L&I Claim Premiums: Amazon’s 15% Workers’ Compensation Rate Increase

The Department of Labor and Industries (L&I) decided to increase Amazon’s fulfillment warehouse work injury insurance premiums by 15%. Consequently, and according to reports, Amazon is disputing L&I’s basis for the rate hike. Personally, this is nothing new. As always, premium rates are a contentious issue. The reason is simple – higher premiums increase the cost of doing business in Washington State.

 

Workers’ compensation claim in Washington State

In Washington State, the workers’ compensation claim system is governed by the Industrial Insurance Act (RCW 51). This act outlines the benefits for workers and their dependents in the event of work injury or occupational disease resulting in disability or death. Generally, L&I collects insurance premiums from employers and employees statewide into several funds. In turn, L&I pays benefits to work injury claimants from those funds. In the case of self-insured employers, either the employer or their workers’ compensation insurance company pays benefits to the injured worker.

 

Work injury insurance

To charge fair premiums, L&I uses a multi-factor system to calculate employer contribution. The goal is for premiums to reflect workers’ risk of injury in their work environment. To accomplish this goal, they calculate workers’ compensation insurance rates on the basis of three factors: (1) Risk classification; (2) Base rates; and (3) Experience.

 

Risk classifications captures the level of hazard or risk exposure for workers in the workplace. There are over 300 categories in this classification. Naturally, employers with more hazardous work environment pay higher L&I premiums. For example, premiums for indoor office work are significantly lower in comparison to premiums for the logging industry.

 

L&I calculations

Calculating base insurance rates also involves several factors. Every year, L&I uses five years of L&I claim cost data to calculate the rates for each risk classification. Here, for each business, L&I multiplies the experience factor by the sum of the Accident Fund, Medical Aid Fund, and Stay at Work base rates. That value is added to the base rate for the Supplemental Pension Fund. Every business that uses the L&I work injury insurance program must pay into all four funds. Base rates for the first three funds vary according to risk classification. Furthermore, businesses receive an annual rate notice from L&I summarizing coverage for the upcoming year every December.

 

Finally, L&I applies an experience factor adjustment to base rates.  The experience factor adjusts the base rate by comparing a business’ actual experience with all businesses in the same risk classification. Then, if a business’ actual losses are less than expected, L&I applies an adjustment to reduce premiums for that employer. Similarly, if actual losses are greater than expected loss, then the experience factor will be greater. When this happens, the business is expected to have higher costs than the benchmark for its risk class.

 

Summary

Since it’s December, L&I’s annual notices just went out. Therefore, it isn’t a coincidence that the Amazon story is in the news right now. Contrary to what the reports may imply, this increase was not to single out and treat Amazon differently from any other employer. In assessing Amazon’s fulfillment warehouse work environment, L&I simply found that the risk classification warrants an adjustment. This kind of adjustment occurs any time L&I finds that current risk classification or experience ratings are inconsistent with the costs and instances of injury in the workplace, for any business.

Denying Medical Condition in L&I Claim: Work Injury Causation vs Degenerative Changes With Age

As we all get older with age, our body tends to wear down. Like all things human, the rate and severity of a wear and tear from aging varies from person to person. In this article, we cover cases where L&I condition is denied. For example, because of age.

 

Age-related degenerative medical conditions

Medically speaking, many refer to the term musculoskeletal aging as “degenerative” or “arthritic” changes. Most human adults are going to experience these changes. However, they do not always cause symptoms such as pain, limitation of movement, and others. In general, doctors can determine the severity of the changes through an X-ray or MRI test.

 

Because of aging, our body may also be more prone to injuries or illness, including work injury and occupation disease. If you suffer an injury on the job, our age and degenerative changes can sometimes complicate matters. In fact, they can make it more difficult to find the cause for a certain medical condition. For example, after an injury at work, did the work injury cause the medical condition? Or is it the person’s age and the natural aging process?

 

If L&I denied a medical condition then…

Personally, it’s very common to see the Department of Labor and Industries (L&I) denying these bodily changes under a workers’ compensation claim. That’s because L&I considers the changes as degenerative. In other words, they often argue that the cause isn’t the workplace injury or work illness (or work-related exposure). However, in my opinion, this assessment is wrong in many cases. Moreover, the Industrial Insurance Act contains clear legal principles concerning causation in the context of aging.

 

Workers compensation claim in Washington State: The law

In Washington State, workers’ compensation covers all workers regardless of their age or prior health. When considering the impact that a work injury or workplace exposure has on a person, the basis for the consideration must be the individual worker. Therefore, it doesn’t matter what the impact of similar workplace injury or illness might have on some other persons. However, having said that, we must take into account preexisting conditions. And when we do, we must examine their status, i.e., what each condition was like previously.

 

Say that a person with an L&I claim or workers’ compensation claim had a condition that wasn’t causing any problems. According to the law, if the work injury or occupational disease made it symptomatic, then the condition is causally-related. Similarly, take another example where a person with a work injury claim had a condition that was causing problems. Here, if the work accident or illness made the condition worse, then it’s also causally related.

 

The age factor when a condition is denied by L&I

Hence, in every workers’ compensation claim, we have to pay special attention to conditions that can worsen with age. As we get older, more medical conditions may surface with our natural aging process. Yet, it doesn’t preclude L&I from accepting the medical condition under an L&I claim. Most importantly, with every workers’ comp claim, it’s critical to examine the facts that pertain to the individual claimant, including his/her conditions, now and in the past.

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