HOUSE FILE 523

BY  COMMITTEE ON LABOR

(SUCCESSOR TO HF 215)

A BILL FOR

An Act relating to employer credits for overpayments of weekly workers’ compensation benefits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 85.34, subsection 4, Code 2011, is amended by striking the subsection and inserting in lieu thereof the following:
   4.  Credits for excess payments.
   a.  If an employee is paid any weekly benefits in excess of that required by this chapter and chapters 85A, 85B, and 86, the excess paid by the employer shall be credited against the liability of the employer as follows:
   (1)  The excess payments shall first be credited against the liability of the employer for any weekly benefits, interest, or penalty benefits owed or awarded to the employee for the same injury.
   (2)  Any remaining excess payments shall be credited against the liability of the same employer for any weekly benefits, interest, or penalty benefits owed or awarded for a subsequent injury to the same employee. An overpayment credit to be applied to a subsequent injury can be established only when the overpayment is recognized pursuant to any of the following:
   (a)  A settlement agreement approved by the commissioner under section 85.35, subsection 2, 4, or 5 or section 86.13.
   (b)  Final agency action in a contested case which was commenced within three years from the date that weekly benefits were last paid for the claim for which the benefits were overpaid.
   (c)  Final agency action in a contested case for a prior injury to the same employee.
   b.  For the purposes of this subsection,“weekly benefits”shall include weekly compensation benefits of any kind paid or owed by an employer for any of the following:
   (1)  Temporary partial or temporary total disability benefits under section 85.33.
   (2)  Healing period benefits under this section.
   (3)  Permanent partial or permanent total disability benefits under this section.
   (4)  Death benefits to the employee’s surviving spouse, children, or other dependents under section 85.31, 85.42, 85.43, or 85.44.
   (5)  Temporary or permanent disability benefits for occupational diseases under chapter 85A.
   (6)  Disability benefits for partial or total occupational hearing loss under chapter 85B.
   Sec. 2.  Section 85.34, subsection 5, Code 2011, is amended by striking the subsection.
EXPLANATION
   This bill amends Code section 85.34 to expand the circumstances under which an employer can receive credit for overpayment of certain weekly workers’ compensation benefits. Currently, if an employee is overpaid weekly workers’ compensation benefits, the excess paid by the employer is credited against the liability of the employer for any future weekly permanent partial disability benefits due from that employer for a subsequent injury to the same employee.
   The bill provides that if an employee is paid any excess weekly benefits, the employer is entitled to a credit against the liability of the employer for any weekly benefits, interest, or penalty benefits owed or awarded to the employee for the same injury. Any remaining excess payments are then credited against the liability of the same employer for any weekly benefits, interest, or penalty benefits owed or awarded for a subsequent injury to the same employee as long as the overpayment is recognized in a settlement agreement approved by the commissioner, or is recognized pursuant to final agency action in a contested case, as specified in the bill.