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Senate Study Bill 2294

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 85.1, subsections 1 and 2, Code 1995,
  1  2 are amended to read as follows:
  1  3    1.  Any employee engaged in any type of service in or about
  1  4 a private dwelling except that after July 1, 1974, this
  1  5 chapter shall apply to such persons who earn two hundred one
  1  6 thousand dollars or more from such employer for whom employed
  1  7 at the time of the injury during the thirteen twelve
  1  8 consecutive weeks months immediately prior to the injury,
  1  9 provided said the employee is not a regular member of the
  1 10 household.  For purposes of this subsection "member of the
  1 11 household" is defined to be the spouse of the employer or
  1 12 relatives of either the employer or spouse residing on the
  1 13 premises of the employer.
  1 14    2.  Persons whose employment is purely casual and not for
  1 15 the purpose of the employer's trade or business, except that
  1 16 after July 1, 1974, this chapter shall apply to such employees
  1 17 who earn two hundred one thousand dollars or more from such
  1 18 employer for whom employed at the time of the injury during
  1 19 the thirteen twelve consecutive weeks months immediately prior
  1 20 to the injury.
  1 21    Sec. 2.  Section 85.1A, Code 1995, is amended to read as
  1 22 follows:
  1 23    85.1A  PROPRIETORS, LIMITED LIABILITY COMPANY MEMBERS, AND
  1 24 PARTNERS.
  1 25    A proprietor, limited liability company member, or partner
  1 26 who is actively engaged in the proprietor's, limited liability
  1 27 company member's, or partner's business on a substantially
  1 28 full-time basis, may elect to be covered by the workers'
  1 29 compensation law of this state by purchasing valid workers'
  1 30 compensation insurance specifically including the proprietor,
  1 31 limited liability company member, or partner.  The election
  1 32 constitutes an assumption by the employer of workers'
  1 33 compensation liability for the proprietor, limited liability
  1 34 company member, or partner for the time period in which the
  1 35 insurance contract is in force.  The proprietor, limited
  2  1 liability company member, or partner shall accept compensation
  2  2 in the manner provided by the workers' compensation law and
  2  3 the employer is relieved from any other liability for recovery
  2  4 of damages, or other compensation for injury.
  2  5    Sec. 3.  Section 85.21, subsection 3, Code 1995, is amended
  2  6 to read as follows:
  2  7    3.  When liability is finally determined by the industrial
  2  8 commissioner, the commissioner shall order the carriers or
  2  9 employers liable to the employee or to the employee's
  2 10 dependent or legal representative to reimburse, with interest
  2 11 at the rate provided in section 85.30, the carriers or
  2 12 employers which are not liable but were required to pay
  2 13 benefits.  Benefits paid or reimbursed pursuant to an order
  2 14 authorized by this section do not require the filing of a
  2 15 memorandum of agreement.  However, a A contested case for
  2 16 benefits under this chapter or under chapter 85A or 85B shall
  2 17 not be maintained against a party to a case or dispute
  2 18 resulting in an order authorized by this section unless the
  2 19 contested case is commenced within three years from the date
  2 20 of the last benefit payment under the order.  The commissioner
  2 21 may determine liability for the payment of workers'
  2 22 compensation benefits under this section.
  2 23    Sec. 4.  Section 85.22, Code 1995, is amended by striking
  2 24 the section and inserting in lieu thereof the following:
  2 25    1.  The entitlement of an employee to receive benefits
  2 26 under this chapter or chapter 85A or 85B is not altered when
  2 27 the entitlement arises from circumstances which also create a
  2 28 cause of action for damages against some person other than the
  2 29 employee's employer or any other employee of such employer as
  2 30 provided in section 85.20.  The employee may pursue the cause
  2 31 of action for damages against such third party without waiving
  2 32 benefits and the employer shall be entitled to indemnification
  2 33 for the benefits actually paid and shall have a lien upon the
  2 34 cause of action and any damages or settlement proceeds which
  2 35 are recovered as provided in this section.
  3  1    2.  The employer's lien is perfected by filing written
  3  2 notice in the office of the clerk of the district court where
  3  3 the action is pending and shall be binding upon any person
  3  4 having actual knowledge that the employee has received
  3  5 benefits from the employer.  The employer shall, upon request
  3  6 by the employee or a third party against whom claim for
  3  7 damages has been made, provide an itemized statement
  3  8 specifying the amount of the employer's lien.
  3  9    3.  The employee shall, within ten days after commencing an
  3 10 action against a third party, serve a copy of the original
  3 11 notice and petition upon the employer or, if benefits have
  3 12 been paid by an insurance carrier, upon the insurance carrier.
  3 13 Failure to give such notice shall not prejudice the employer
  3 14 or the claim against the third party.  If the employee fails
  3 15 to bring an action against a third party within ninety days
  3 16 after written notice to do so has been given by the employer,
  3 17 the employer shall be subrogated to the rights of the employee
  3 18 to maintain the action against the third party in the place of
  3 19 the employee.
  3 20    4.  Damages or settlement proceeds recovered from a third
  3 21 party shall be disbursed as follows:
  3 22    a.  Attorney fees and litigation expenses shall be paid.
  3 23 Any dispute concerning the fees or expenses shall be
  3 24 determined by the district court.
  3 25    b.  After payment of expenses as provided in paragraph "a",
  3 26 the employee shall receive one-third of the net proceeds
  3 27 recovered free of the employer's lien and credit rights.
  3 28    c.  After payment of the proceeds provided in paragraphs
  3 29 "a" and "b", the employer's lien for benefits paid shall be
  3 30 satisfied, as nearly as the balance of the recovery permits.
  3 31 The employer's lien for purposes of this section shall not
  3 32 include any penalty benefits paid under section 86.13.
  3 33    d.  Any part of the recovery which remains undisbursed
  3 34 after the employer's lien has been fully satisfied shall be
  3 35 paid to the employee, but shall be subject to the employer's
  4  1 right of offset.
  4  2    5.  If an employee, after receiving a recovery from a third
  4  3 party, becomes entitled to additional benefits from the
  4  4 employer in connection with the circumstances which gave rise
  4  5 to the cause of action against the third party, the employer
  4  6 shall have an offset against the additional entitlement for
  4  7 the net amount of the recovery actually paid to the employee
  4  8 after satisfaction of the employer's lien.
  4  9    6.  A settlement between an employee or an employer and the
  4 10 third party is not effective until it is approved in writing
  4 11 by the industrial commissioner unless both the employer and
  4 12 the employee give written consent to the settlement.  A
  4 13 written memorandum of any settlement, if made, shall be filed
  4 14 by the employer in the office of the industrial commissioner.
  4 15    7.  Any payment made to or as directed by the employee, by
  4 16 or on behalf of the third party, in resolution of the
  4 17 employee's cause of action against the third party, is a
  4 18 payment of damages or settlement proceeds upon which the
  4 19 employer has a lien and right of offset.
  4 20    8.  As used in this section, unless the context otherwise
  4 21 requires:
  4 22    a.  "Employee" includes any person who has received or
  4 23 becomes entitled to receive benefits under the provisions of
  4 24 this chapter or chapter 85A or 85B in connection with the
  4 25 circumstances which gave rise to the cause of action against
  4 26 the third party.
  4 27    b.  "Employer" includes any person or entity which has paid
  4 28 or becomes legally obligated to pay benefits under the
  4 29 provisions of this chapter or chapter 85A or 85B in connection
  4 30 with the circumstances which gave rise to the cause of action
  4 31 against the third party.
  4 32    Sec. 5.  Section 85.27, unnumbered paragraph 3, Code 1995,
  4 33 is amended to read as follows:
  4 34    Notwithstanding section 85.26, subsection 4, charges
  4 35 believed to be excessive or unnecessary may be referred by the
  5  1 employer, insurance carrier, or health service provider to the
  5  2 industrial commissioner for determination, and the
  5  3 commissioner may utilize the procedures provided in sections
  5  4 86.38 and 86.39, or set by rule, and conduct such inquiry as
  5  5 the commissioner deems necessary.  Any health service provider
  5  6 charges not in dispute shall be paid directly to the health
  5  7 service provider prior to utilization of procedures provided
  5  8 in sections 86.38 and 86.39 or set by rule. A health service
  5  9 provider rendering treatment to an employee whose injury is
  5 10 compensable under this section agrees to be bound by such
  5 11 charges as allowed by the industrial commissioner and shall
  5 12 not recover in law or equity any amount in excess of charges
  5 13 set by the commissioner.  When a dispute under chapter 85
  5 14 regarding reasonableness of a fee for medical services arises
  5 15 between a health service provider and an employer or insurance
  5 16 carrier, the health service provider, employer, or insurance
  5 17 carrier shall not seek payment from the injured employee.
  5 18 When a dispute under this chapter regarding reasonableness of
  5 19 a fee for medical services arises between a health service
  5 20 provider and an insurance carrier, the health service provider
  5 21 shall not seek payment from the employer.
  5 22    Sec. 6.  Section 85.27, unnumbered paragraph 6, Code 1995,
  5 23 is amended to read as follows:
  5 24    While a contested case proceeding for determination of
  5 25 liability for workers' compensation benefits is pending before
  5 26 the industrial commissioner relating to an injury alleged to
  5 27 have given rise to treatment, no debt collection, as defined
  5 28 by section 537.7102, shall be undertaken against an the
  5 29 employee, or the employee's dependents, or the employer for
  5 30 the collection of charges for that treatment rendered an
  5 31 employee by any health service provider.  However, the health
  5 32 service provider may send one itemized written bill to the
  5 33 employee and the employer setting forth the amount of the
  5 34 charges in connection with the treatment after notification of
  5 35 the contested case proceeding.
  6  1    Sec. 7.  Section 85.30, Code 1995, is amended to read as
  6  2 follows:
  6  3    85.30  MATURITY DATE AND INTEREST.
  6  4    1.  Compensation payments shall be made each week beginning
  6  5 on the eleventh day after the injury, and each week thereafter
  6  6 during the period for which compensation is payable, and if
  6  7 not paid when due, there shall be added to the weekly
  6  8 compensation payments, interest at the rate provided for in
  6  9 this section 535.3 for court judgments and decrees.
  6 10    2.  The employer shall pay the reasonable charges of those
  6 11 persons who provide services or supplies pursuant to section
  6 12 85.27 within sixty days following receipt of the bill for the
  6 13 charges and, if not paid when due, interest as provided in
  6 14 this section.  If a provider's reasonable charges have been
  6 15 paid by the injured employee, or a third party on the
  6 16 employee's behalf, the employee shall be reimbursed by the
  6 17 employer together with interest computed from the date the
  6 18 charges were paid, subject to section 85.38, subsection 2, and
  6 19 any rights of subrogation held by a third party.
  6 20    3.  The interest rate shall be the rate of interest
  6 21 distributed by the state court administrator pursuant to
  6 22 section 668.13, subsection 3, for January of each year which
  6 23 rate shall be effective from July 1 of that year through June
  6 24 30 of the following year.
  6 25    Sec. 8.  Section 85.33, subsection 4, Code 1995, is amended
  6 26 to read as follows:
  6 27    4.  If an employee is entitled to temporary partial
  6 28 benefits under subsection 3 of this section, the employer for
  6 29 whom the employee was working at the time of injury shall pay
  6 30 to the employee weekly compensation benefits, as provided in
  6 31 section 85.32, for and during the period of temporary partial
  6 32 disability.  The temporary partial benefit shall be sixty-six
  6 33 and two-thirds percent of the difference between the
  6 34 employee's weekly earnings at the time of injury, computed in
  6 35 compliance with section 85.36, and the employee's actual gross
  7  1 weekly income from employment during the period of temporary
  7  2 partial disability.  If at the time of injury an employee is
  7  3 paid on the basis of the output of the employee, with a
  7  4 minimum guarantee pursuant to a written employment agreement,
  7  5 the minimum guarantee shall be used as the employee's weekly
  7  6 earnings at the time of injury.  However, the weekly
  7  7 compensation benefits shall not exceed the payments to which
  7  8 the employee would be entitled under subsection 1 or under
  7  9 section 85.36 or section 85.37, or under subsection 1 of this
  7 10 section.
  7 11    Sec. 9.  Section 85.35, Code 1995, is amended by adding the
  7 12 following new subsection:
  7 13    NEW SUBSECTION.  9.  The claimed disability is related to
  7 14 an injury occurring under the coverage of another carrier
  7 15 during the period of employment with an employer.
  7 16    Sec. 10.  Section 85.36, Code Supplement 1995, is amended
  7 17 to read as follows:
  7 18    85.36  BASIS OF COMPUTATION.
  7 19    The basis of compensation shall be the weekly customary
  7 20 gross earnings of the injured employee at the time of the
  7 21 injury.  Weekly earnings means gross salary, wages, or
  7 22 earnings of an employee to which such employee would have been
  7 23 entitled had the employee worked the customary hours for the
  7 24 full pay period in which the employee was injured, as
  7 25 regularly required by the employee's employer for the work or
  7 26 employment for which the employee was employed, computed or
  7 27 determined The employee's customary gross earnings shall be
  7 28 converted into gross weekly earnings as follows and then
  7 29 rounded to the nearest dollar:
  7 30    1.  In the case of an For employees paid a fixed salary,
  7 31 gross weekly earnings shall be calculated as follows:
  7 32    a.  If the employee who is paid on a weekly pay period
  7 33 basis, the weekly gross earnings.
  7 34    2. b.  In the case of an If the employee who is paid on a
  7 35 biweekly pay period basis, one-half of the biweekly gross
  8  1 earnings.
  8  2    3. c.  In the case of an If the employee who is paid on a
  8  3 semimonthly pay period basis, the semimonthly gross earnings
  8  4 multiplied by twenty-four and subsequently divided by fifty-
  8  5 two.
  8  6    4. d.  In the case of an If the employee who is paid on a
  8  7 monthly pay period basis, the monthly gross earnings
  8  8 multiplied by twelve and subsequently divided by fifty-two.
  8  9    5. e.  In the case of an If the employee who is paid on a
  8 10 yearly pay period basis, the weekly earnings shall be the
  8 11 yearly earnings divided by fifty-two.
  8 12    6. 2.  In the case of For an employee who is paid on a
  8 13 daily, or hourly basis, or by the output of the employee, the
  8 14 gross weekly earnings shall be computed by dividing by
  8 15 thirteen the earnings, not including overtime or premium pay,
  8 16 of said the employee earned in the employ of the employer in
  8 17 the last completed period of thirteen consecutive calendar
  8 18 weeks immediately preceding the injury.
  8 19    7. a.  In the case of an If the employee who has been in
  8 20 the employ of the employer less than thirteen calendar weeks
  8 21 immediately preceding the injury, the employee's gross weekly
  8 22 earnings shall be computed under subsection 6, taking the
  8 23 earnings, not including overtime or premium pay, for such
  8 24 purpose to be the amount the employee would have earned had
  8 25 the employee been so employed by the employer the full
  8 26 thirteen calendar weeks immediately preceding the injury and
  8 27 had worked, when work was available to other employees in a
  8 28 similar occupation or, if the earnings of other employees
  8 29 cannot be determined, the average weekly gross earnings shall
  8 30 be computed for the number of weeks the employee has been in
  8 31 the employ of the employer.
  8 32    b.  If the employee was absent from the employment for the
  8 33 reasons personal to the employee during part of the thirteen
  8 34 calendar weeks immediately preceding the injury, the
  8 35 employee's weekly gross earnings shall be the amount the
  9  1 employee would have earned had the employee worked when work
  9  2 was available to other employees in a similar occupation.
  9  3    3.  If the employee holds more than one employment during
  9  4 the week in which the injury occurs, the gross weekly earnings
  9  5 from all the employments during the thirteen calendar weeks
  9  6 preceding the injury shall be used to compute the gross weekly
  9  7 earnings.  If the employee returns to any employment, the
  9  8 provisions of section 85.33 apply.
  9  9    8. 4.  If at the time of the injury the hourly earnings
  9 10 have not been fixed or cannot be ascertained, the earnings for
  9 11 the purpose of calculating compensation shall be taken to be
  9 12 the usual earnings for similar services where such services
  9 13 are rendered by paid employees.
  9 14    9.  If an employee earns either no wages or less than the
  9 15 usual weekly earnings of the regular full-time adult laborer
  9 16 in the line of industry in which the employee is injured in
  9 17 that locality, the weekly earnings shall be one-fiftieth of
  9 18 the total earnings which the employee has earned from all
  9 19 employment during the twelve calendar months immediately
  9 20 preceding the injury.
  9 21    a. 5.  In computing the compensation to be allowed a
  9 22 volunteer fire fighter, emergency medical care provider,
  9 23 reserve peace officer, volunteer ambulance driver, or
  9 24 emergency medical technician trainee, the earnings as a fire
  9 25 fighter, emergency medical care provider, reserve peace
  9 26 officer, volunteer ambulance driver, or emergency medical
  9 27 technician trainee shall be disregarded and the volunteer fire
  9 28 fighter, emergency medical care provider, reserve peace
  9 29 officer, volunteer ambulance driver, or emergency medical
  9 30 technician trainee shall be paid an amount equal to the
  9 31 compensation the volunteer fire fighter, emergency medical
  9 32 care provider, reserve peace officer, volunteer ambulance
  9 33 driver, or emergency medical technician trainee would be paid
  9 34 if injured in the normal course of the volunteer fire
  9 35 fighter's, emergency medical care provider's, reserve peace
 10  1 officer's, volunteer ambulance driver's, or emergency medical
 10  2 technician trainee's regular employment or an amount equal to
 10  3 one hundred and forty percent of the statewide average weekly
 10  4 wage, whichever is greater.
 10  5    b. 6.  If the employee was an apprentice or trainee when
 10  6 injured, and it is established under normal conditions the
 10  7 employee's earnings should be expected to increase during the
 10  8 period of disability, that fact may be considered in computing
 10  9 the employee's weekly earnings.
 10 10    c. 7.  In computing the compensation to be paid to any
 10 11 employee who, before the accident for which the employee
 10 12 claims compensation, was disabled and drawing compensation
 10 13 under the provisions of this chapter, the compensation for
 10 14 each subsequent injury shall be apportioned according to the
 10 15 proportion of disability caused by the respective injuries
 10 16 which the employee shall have suffered.
 10 17    Paragraph "c" of this This subsection shall not apply to
 10 18 compensable injuries arising under the second injury
 10 19 compensation Act.
 10 20    d. 8.  If the employee was an inmate as defined in section
 10 21 85.59, the inmate's actual earnings shall be disregarded, and
 10 22 the weekly compensation rate shall be as set forth in section
 10 23 85.59.
 10 24    10. 9.  If a wage, or method of calculating a wage, is used
 10 25 for the basis of the payment of a workers' compensation
 10 26 insurance premium for a proprietor, partner, limited liability
 10 27 company member, or officer of a corporation, the wage or the
 10 28 method of calculating the wage is determinative for purposes
 10 29 of computing the proprietor's, partner's, limited liability
 10 30 company member's, or officer's weekly workers' compensation
 10 31 benefit rate.
 10 32    11. 10.  In computing the compensation to be allowed an
 10 33 elected or appointed official, the official may choose either
 10 34 of the following payment options:
 10 35    a.  The official shall be paid an amount of compensation
 11  1 based on the official's weekly earnings as an elected or
 11  2 appointed official.
 11  3    b.  The earnings of the official as an elected or appointed
 11  4 official shall be disregarded and the official shall be paid
 11  5 an amount equal to one hundred forty percent of the statewide
 11  6 average weekly wage.
 11  7    11.  If none of the methods of calculating an employee's
 11  8 customary gross earnings provide a result that is fairly
 11  9 representative of the employee's customary gross earnings, the
 11 10 weekly gross earnings shall be one-fifty-second of the total
 11 11 earnings the employee has earned from all employment during
 11 12 the twelve calendar months immediately preceding the injury.
 11 13    Sec. 11.  Section 85.38, subsection 2, Code 1995, is
 11 14 amended to read as follows:
 11 15    2.  CREDIT FOR BENEFITS PAID UNDER GROUP PLANS.  In the
 11 16 event the disabled employee shall receive any benefits,
 11 17 including medical, surgical or hospital benefits, under any
 11 18 group plan covering nonoccupational disabilities contributed
 11 19 to wholly or partially by the employer, which benefits should
 11 20 not have been paid or payable if any rights of recovery
 11 21 existed under this chapter, chapter 85A or chapter 85B, then
 11 22 such amounts so paid to said employee from any such group plan
 11 23 shall be credited to or against any compensation payments,
 11 24 including medical, surgical or hospital, made or to be made
 11 25 under this chapter, chapter 85A or chapter 85B.  Such amounts
 11 26 so credited shall be deducted from the payments made under
 11 27 these chapters.  Any nonoccupational plan shall be reimbursed
 11 28 in the amount so deducted with interest at the rate provided
 11 29 in section 85.30.  This section shall not apply to payments
 11 30 made under any group plan which would have been payable even
 11 31 though there was an injury under this chapter or an
 11 32 occupational disease under chapter 85A or an occupational
 11 33 hearing loss under chapter 85B.  Any employer receiving such
 11 34 credit shall keep such employee safe and harmless from any and
 11 35 all claims or liabilities that may be made against them by
 12  1 reason of having received such payments only to the extent of
 12  2 such credit.
 12  3    Sec. 12.  Section 85.47, Code 1995, is amended to read as
 12  4 follows:
 12  5    85.47  BASIS OF COMMUTATION.
 12  6    When the commutation is ordered, the industrial
 12  7 commissioner shall fix the lump sum to be paid at an amount
 12  8 which will equal the total sum of the probable future payments
 12  9 capitalized at their present value and upon the basis of
 12 10 interest at the rate provided in section 535.3 for court
 12 11 judgments and decrees 85.30.  Upon the payment of such amount
 12 12 the employer shall be discharged from all further liability on
 12 13 account of the injury or death, and be entitled to a duly
 12 14 executed release, upon filing which the liability of the
 12 15 employer under any agreement, award, finding, or judgment
 12 16 shall be discharged of record.
 12 17    Sec. 13.  Section 85.48, Code 1995, is amended to read as
 12 18 follows:
 12 19    85.48  PARTIAL COMMUTATION.
 12 20    When partial commutation is ordered, the industrial
 12 21 commissioner shall fix the lump sum to be paid at an amount
 12 22 which will equal the future payments for the period commuted,
 12 23 capitalized at their present value upon the basis of interest
 12 24 at the rate provided in section 535.3 for court judgments and
 12 25 decrees 85.30, with provisions for the payment of weekly
 12 26 compensation not included in the commutation, subject to the
 12 27 law applicable to such unpaid weekly payments; all remaining
 12 28 payments, if any, to be paid at the same time as though the
 12 29 commutation had not been made.
 12 30    Sec. 14.  Section 85.61, subsection 11, unnumbered
 12 31 paragraph 1, Code Supplement 1995, is amended to read as
 12 32 follows:
 12 33    "Worker" or "employee" means a person who has entered into
 12 34 the employment of, or works under contract of service, express
 12 35 or implied, or apprenticeship, for an employer; an executive
 13  1 officer elected or appointed and empowered under and in
 13  2 accordance with the charter and bylaws of a corporation,
 13  3 including a person holding an official position, or standing
 13  4 in a representative capacity of the employer; an official
 13  5 elected or appointed by the state, or a county, school
 13  6 district, area education agency, municipal corporation, or
 13  7 city under any form of government; a member of the Iowa
 13  8 highway safety patrol; a conservation officer; and a
 13  9 proprietor, limited liability company member, or partner who
 13 10 elects to be covered pursuant to section 85.1A, except as
 13 11 specified in this chapter.
 13 12    Sec. 15.  Section 85.61, subsection 13, paragraph e, Code
 13 13 Supplement 1995, is amended to read as follows:
 13 14    e.  Proprietors, limited liability company members, and
 13 15 partners who have not elected to be covered by the workers'
 13 16 compensation law of this state pursuant to section 85.1A.
 13 17    Sec. 16.  Section 602.8102, subsection 82, Code Supplement
 13 18 1995, is amended to read as follows:
 13 19    82.  Carry out duties relating to liens as provided in
 13 20 chapters 85, 249A, 570, 571, 572, 574, 580, 581, 582, and 584.  
 13 21                           EXPLANATION
 13 22    Section 1 of the bill provides that the workers'
 13 23 compensation chapter does not apply to an employee who works
 13 24 in or about a private dwelling or in casual employment and who
 13 25 earns less than $1,000 from an employer during the 12 months
 13 26 immediately prior to the employee's injury.  Current law
 13 27 provides that the chapter does not apply if such a person
 13 28 earns less than $200 during the 13 weeks prior to the injury.
 13 29    Sections 2, 14, and 15 provide that a limited liability
 13 30 company member who is actively engaged in that member's
 13 31 business may elect to be covered by the workers' compensation
 13 32 law by purchasing workers' compensation insurance.  The bill
 13 33 provides that a limited liability company member who elects
 13 34 not to be covered by the workers' compensation law is not an
 13 35 employee or worker for purposes of the workers' compensation
 14  1 law.
 14  2    Sections 3, 11, 12, 13, and new subsection 3 in section 7
 14  3 of this bill provide for the interest rate to be used to
 14  4 calculate interest under workers' compensation.  The bill
 14  5 provides that the interest rate shall be calculated using the
 14  6 rate of interest distributed by the state court administrator
 14  7 pursuant to section 668.13 for each January which rate shall
 14  8 be effective for one year from July 1 of that year.
 14  9    Section 4 of this bill provides the procedure for an
 14 10 employer to be subrogated or indemnified to proceeds received
 14 11 by an employee in an action against a third party.  The bill
 14 12 provides that the employer's right to be reimbursed is
 14 13 perfected by filing a lien.  The bill allows an employer to be
 14 14 subrogated or indemnified for future compensation received by
 14 15 the employee in the form of a credit.  This would overrule a
 14 16 portion of the decision in Fisher v. Keller Industries, Inc.,
 14 17 485 N.W. 2d 626 (Iowa 1992), which limited the right of
 14 18 indemnity to payments made at the time the employee secured
 14 19 recovery from the third party.  In addition, the bill provides
 14 20 that the employer is not liable for additional benefits due an
 14 21 employee to the extent of the employee's recovery from a third
 14 22 party.
 14 23    The bill also changes current law by providing that the
 14 24 employee serve a copy of the original notice and petition on
 14 25 the employer within 10 days after commencing an action against
 14 26 a third party instead of not less than 10 days before trial.
 14 27 The bill also provides that the employer shall be subrogated
 14 28 to the rights of the employee to maintain an action if the
 14 29 employee fails to bring an action against any third party
 14 30 within 90 days after written notice by the employer.
 14 31 Currently, if the third party is a certain type of city, the
 14 32 employer is subrogated after 30 days.
 14 33    Section 5 of the bill provides that when a dispute as to
 14 34 the reasonableness of a medical services fee under chapter 85
 14 35 arises between a health service provider and an insurance
 15  1 carrier, the health service provider is prohibited from
 15  2 seeking payment of the fee from the employer.
 15  3    Section 6 provides that the current limitation on debt
 15  4 collection against employees also applies to employers.
 15  5    Section 7 of the bill also provides that the employer pay
 15  6 the reasonable charges of persons who provide services
 15  7 pursuant to section 85.27 within 60 days after receipt of the
 15  8 bill.  The bill provides that the employer is liable for
 15  9 interest if the bill remains unpaid.  If the employee paid the
 15 10 charges, the bill provides that the employee is entitled to be
 15 11 reimbursed from the employer with interest.
 15 12    Section 8 of the bill eliminates the special provision
 15 13 concerning the payment of temporary partial disability that
 15 14 sets the weekly earnings of an employee who works at a piece-
 15 15 work rate.
 15 16    Section 9 provides that a dispute concerning whether a
 15 17 claimed disability is related to an injury occurring under
 15 18 another carrier's coverage is a basis for settlement under the
 15 19 special settlement procedure provided for in section 85.35.
 15 20    Section 10 makes changes concerning the computation of an
 15 21 injured employee's earnings for purposes of workers'
 15 22 compensation benefits.  The bill provides for the calculation
 15 23 of earnings for employees absent from employment for personal
 15 24 reasons during part of the 13 weeks after the injury, for
 15 25 employees who hold more than one job during the week the
 15 26 injury occurs, and allows a different calculation of earnings
 15 27 if the methods of calculation provided in the section do not
 15 28 result in an amount that is fairly representative of
 15 29 employees' customary gross earnings.  
 15 30 LSB 3659SC 76
 15 31 ec/jj/8
     

Text: SSB02293                          Text: SSB02295
Text: SSB02200 - SSB02299               Text: SSB Index
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