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Senate File 349 - IntroducedA Bill ForAn Act 1relating to workers’ compensation.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 85.23, Code 2019, is amended to read as
2follows:
385.23 Notice of injury — failure to give.
4Unless the employer or the employer’s representative shall
5have actual knowledge of the occurrence of an injury received
6within ninety days from the date of the occurrence of the
7injury, or unless the employee or someone on the employee’s
8behalf or a dependent or someone on the dependent’s behalf
9shall give notice thereof to the employer within ninety days
10from the date of the occurrence of the injury, no compensation
11shall be allowed. For the purposes of this section, “date of
12the occurrence of the injury” means the date that the employee
13knew or should have known that the injury was work-related.
14 Sec. 2. Section 85.26, subsection 1, Code 2019, is amended
15to read as follows:
161. An original proceeding for benefits under this chapter
17or chapter 85A, 85B, or 86, shall not be maintained in any
18contested case unless the proceeding is commenced within two
19years from the date of the occurrence of the injury for which
20benefits are claimed or, if weekly compensation benefits are
21paid under section 86.13, within three years from the date of
22the last payment of weekly compensation benefits. For the
23purposes of this section, “date of the occurrence of the injury”
24 means the date that the employee knew or should have known that
25the injury was work-related.
26 Sec. 3. Section 85.34, subsection 2, paragraph n, Code 2019,
27is amended by striking the paragraph.
28 Sec. 4. Section 85.34, subsection 2, paragraph v, Code 2019,
29is amended to read as follows:
30v. In all cases of permanent partial disability other than
31those hereinabove described or referred to in paragraphs “a”
32through “u” hereof, the compensation shall be paid during
33the number of weeks in relation to five hundred weeks as the
34reduction in the employee’s earning capacity caused by the
35disability bears in relation to the earning capacity that the
-1-1employee possessed when the injury occurred. A determination
2of the reduction in the employee’s earning capacity caused
3by the disability shall take into account the permanent
4partial disability of the employee and the number of years in
5the future it was reasonably anticipated that the employee
6would work at the time of the injury. If an employee who
7is eligible for compensation under this paragraph returns to
8work or is offered work for which the employee receives or
9would receive the same or greater salary, wages, or earnings
10than the employee received at the time of the injury, the
11employee shall be compensated based only upon the employee’s
12functional impairment resulting from the injury, and not in
13relation to the employee’s earning capacity. Notwithstanding
14section 85.26, subsection 2, if an employee who is eligible
15for compensation under this paragraph returns to work with the
16same employer and is compensated based only upon the employee’s
17functional impairment resulting from the injury as provided
18in this paragraph and is terminated from employment by that
19employer, the award or agreement for settlement for benefits
20under this chapter shall be reviewed upon commencement of
21reopening proceedings by the employee for a determination of
22any reduction in the employee’s earning capacity caused by the
23employee’s permanent partial disability.
24 Sec. 5. Section 85.34, subsection 2, paragraphs x and y,
25Code 2019, are amended by striking the paragraphs.
26 Sec. 6. Section 85.34, subsection 3, Code 2019, is amended
27to read as follows:
283. Permanent total disability.
29a. Compensation for an injury causing permanent total
30disability shall be upon the basis of eighty percent per week
31of the employee’s average spendable weekly earnings, but not
32more than a weekly benefit amount, rounded to the nearest
33dollar, equal to two hundred percent of the statewide average
34weekly wage paid employees as determined by the department
35of workforce development under section 96.19, subsection 36,
-2-1and in effect at the time of the injury. The minimum weekly
2benefit amount is equal to the weekly benefit amount of a
3person whose gross weekly earnings are thirty-five percent of
4the statewide average weekly wage. The weekly compensation is
5payable until the employee is no longer permanently and totally
6disabled during the period of the employee’s disability.
7b. Such compensation shall be in addition to the benefits
8provided in sections 85.27 and 85.28. No compensation shall
9be payable under this subsection for any injury for which
10compensation is payable under subsection 2 of this section.
11In the event compensation has been paid to any person under
12any provision of this chapter, chapter 85A, or chapter 85B
13for an the same injury producing a permanent disability, any
14such amounts so paid shall be deducted from the total amount
15of compensation payable for permanent total disability. An
16employee shall not receive compensation for permanent partial
17disability if the employee is receiving compensation for
18permanent total disability.
19c. An employee forfeits the employee’s weekly compensation
20for a permanent total disability under this subsection for a
21week in which the employee is receiving a payment equal to or
22greater than fifty percent of the statewide average weekly wage
23from any of the following sources:
24(1) Gross earnings from any employer.
25(2) Payment for current services from any source.
26d. c. An employee is not entitled to compensation for a
27permanent total disability under this subsection while the
28employee is receiving unemployment compensation under chapter
2996.
30 Sec. 7. Section 85.34, subsection 7, Code 2019, is amended
31to read as follows:
327. Successive disabilities.
33a. An employer is fully liable for compensating only that
34portion all of an employee’s disability that arises out of and
35in the course of the employee’s employment with the employer
-3-1and that relates to the injury that serves as the basis for
2the employee’s claim for compensation under this chapter,
3or chapter 85A, 85B, or 86. An employer is not liable for
4compensating an employee’s preexisting disability that arose
5out of and in the course of employment from a prior injury with
6the employer, to the extent that the employee’s preexisting
7disability has already been compensated under this chapter,
8or chapter 85A, 85B, or 86. An employer is not liable for
9compensating an employee’s preexisting disability that arose
10out of and in the course of employment with a different
11employer or from causes unrelated to employment.
12b. (1) If an injured employee has a preexisting disability
13that was caused by a prior injury arising out of and in
14the course of employment with the same employer, and the
15preexisting disability was compensable under the same paragraph
16of subsection 2 as the employee’s present injury, the employer
17is liable for the combined disability that is caused by the
18injuries, measured in relation to the employee’s condition
19immediately prior to the first injury. In this instance, the
20employer’s liability for the combined disability shall be
21considered to be already partially satisfied to the extent
22of the percentage of disability for which the employee was
23previously compensated by the employer.
24(2) If, however, an employer is liable to an employee for
25a combined disability that is payable under subsection 2,
26paragraph “v”, and the employee has a preexisting disability
27that causes the employee’s earnings to be less at the time of
28the present injury than if the prior injury had not occurred,
29the employer’s liability for the combined disability shall be
30considered to be already partially satisfied to the extent
31of the percentage of disability for which the employee was
32previously compensated by the employer minus the percentage
33that the employee’s earnings are less at the time of the
34present injury than if the prior injury had not occurred.
35c. A successor employer shall be considered to be the
-4-1same employer if the employee became part of the successor
2employer’s workforce through a merger, purchase, or other
3transaction that assumes the employee into the successor
4employer’s workforce without substantially changing the nature
5of the employee’s employment.
6 Sec. 8. Section 85.45, subsection 1, unnumbered paragraph
71, Code 2019, is amended to read as follows:
8Future payments of compensation may be commuted to a present
9worth lump sum payment only upon application of a party to
10the commissioner and upon written consent of all parties to
11the proposed commutation or partial commutation, and on the
12following conditions:
13 Sec. 9. Section 85.45, subsection 3, Code 2019, is amended
14by striking the subsection.
15 Sec. 10. Section 85.70, subsection 1, Code 2019, is amended
16to read as follows:
171. An employee who has sustained an injury resulting in
18permanent partial or permanent total disability, for which
19compensation is payable under this chapter other than an
20injury to the shoulder compensable pursuant to section 85.34,
21subsection 2, paragraph “n”, and who cannot return to gainful
22employment because of such disability, shall upon application
23to and approval by the workers’ compensation commissioner
24be entitled to a one hundred dollar weekly payment from the
25employer in addition to any other benefit payments, during each
26full week in which the employee is actively participating in a
27vocational rehabilitation program recognized by the vocational
28rehabilitation services division of the department of
29education. The workers’ compensation commissioner’s approval
30of such application for payment may be given only after a
31careful evaluation of available facts, and after consultation
32with the employer or the employer’s representative.
33Judicial review of the decision of the workers’ compensation
34commissioner may be obtained in accordance with the terms of
35the Iowa administrative procedure Act, chapter 17A, and in
-5-1section 86.26. Such additional benefit payment shall be paid
2for a period not to exceed thirteen consecutive weeks except
3that the workers’ compensation commissioner may extend the
4period of payment not to exceed an additional thirteen weeks if
5the circumstances indicate that a continuation of training will
6in fact accomplish rehabilitation.
7 Sec. 11. Section 85.70, subsection 2, Code 2019, is amended
8by striking the subsection.
9 Sec. 12. Section 85.71, subsection 1, paragraph a, Code
102019, is amended to read as follows:
11a. The employer has a place of business in this state and
12the employee regularly works at or from that place of business,
13or the employer has a place of business in this state and the
14employee is domiciled in this state.
15 Sec. 13. Section 535.3, subsection 1, Code 2019, is amended
16to read as follows:
171. a. Interest shall be allowed on all money due on
18judgments and decrees of courts at a rate calculated according
19to section 668.13, except for interest due pursuant to section
2085.30 for which the rate shall be ten percent per year.
21b. Notwithstanding paragraph “a”, interest due pursuant
22to section 85.30 shall accrue from the date each compensation
23payment is due at an annual rate equal to the one-year treasury
24constant maturity published by the federal reserve in the most
25recent H15 report settled as of the date of injury, plus two
26percent.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to workers’ compensation by reversing some
31of the changes to the Code that were made with the passage of
32House File 518 in 2017.
33The bill amends Code section 85.23, requiring notice of
34injury, and Code section 85.26(1), concerning limitations of
35actions, to remove definitions of “date of the occurrence of
-6-1the injury” to mean the date the employee knew or should have
2known that the injury was work-related.
3The bill removes a shoulder injury from the scheduled injury
4list for permanent partial disability in Code section 85.34(2)
5by striking paragraph “n”, which stated: “For the loss of a
6shoulder, weekly compensation during four hundred weeks”.
7The bill amends Code section 85.34(2)(v), concerning
8compensation for permanent partial disability for
9injuries other than scheduled injuries under Code section
1085.34(2)(a)-(u), to remove a provision that a reduction in the
11employee’s earning capacity caused by a disability must take
12into account the employee’s permanent partial disability and
13the number of years in the future it was reasonably anticipated
14the employee would work at the time of the injury. The bill
15removes a provision that an employee who returns to work or
16is offered work for the same or more money than the employee
17received when injured shall be compensated only for functional
18disability, and not in relation to earning capacity. The
19bill also removes a provision that notwithstands Code section
2085.26(2), regarding limitations of actions.
21The bill strikes Code section 85.34(2)(x), concerning
22permanent partial disability. The paragraph provides that in
23all cases of permanent partial disability described in Code
24section 85.34(2)(a)-(u), or Code section 85.34(2)(v), when
25determining functional disability and not loss of earning
26capacity, the extent of loss or percentage of permanent
27impairment shall be determined solely by utilizing the guides
28to the evaluation of permanent impairment, published by the
29American medical association, as adopted by the workers’
30compensation commissioner by rule pursuant to Code chapter 17A.
31 The Code section prohibits lay testimony or agency expertise
32from being utilized in making this determination.
33The bill strikes Code section 85.34(2)(y), concerning
34permanent partial disability. The paragraph provides that
35compensation for permanent partial disability for an injury
-7-1shall terminate on the date when compensation for permanent
2total disability for any injury begins. The Code section
3prohibits an employee from receiving compensation for permanent
4partial disability if the employee is receiving compensation
5for permanent total disability.
6The bill amends Code section 85.34(3)(a), concerning
7permanent total disability, to provide that the weekly
8compensation is payable “during the period of the employee’s
9disability”, rather than “until the employee is no longer
10permanently and totally disabled”.
11The bill amends Code section 85.34(3)(b) to provide that in
12the event compensation has been paid to any person under any
13provision of Code chapter 85, 85A, or 85B for the same injury,
14rather than an injury, producing a permanent disability, any
15such amount so paid shall be deducted from the total amount of
16compensation payable for permanent total disability. The bill
17also amends the paragraph to remove a provision which provided
18that “an employee shall not receive compensation for permanent
19partial disability if the employee is receiving compensation
20for permanent total disability”.
21The bill strikes Code section 85.34(3)(c), which provides
22that an employee forfeits the employee’s weekly compensation
23for a permanent total disability under this subsection for a
24week in which the employee is receiving a payment equal to or
25greater than 50 percent of the statewide average weekly wage
26from any of the following sources: gross earnings from any
27employer or payment for current services from any source.
28The bill amends Code section 85.34(7), concerning successive
29disabilities, to provide that an employer is fully liable for
30compensating all of an employee’s disability that arises out
31of and in the course of the employee’s employment with the
32employer and removes the requirement that it relate to the
33injury that serves as the basis for the employee’s claim for
34compensation under Code chapter 85, 85A, 85B, or 86. The bill
35also removes a provision that an employer is not liable for
-8-1compensating an employee’s preexisting disability that arose
2out of and in the course of employment from a prior injury with
3the employer, to the extent that the employee’s preexisting
4disability has already been compensated under Code chapter
585, 85A, 85B, or 86. The bill provides that if an injured
6employee has a preexisting disability that was caused by a
7prior injury arising out of and in the course of employment
8with the same employer, and the preexisting disability was
9compensable under Code section 85.34(2) as the employee’s
10present injury, the employer is liable for the combined
11disability that is caused by the injuries, measured in relation
12to the employee’s condition immediately prior to the first
13injury. In this instance, the employer’s liability for the
14combined disability shall be considered to be already partially
15satisfied to the extent of the percentage of disability for
16which the employee was previously compensated by the employer.
17The bill provides, however, that if an employer is liable to
18an employee for a combined disability that is payable under
19Code section 85.34(2)(v) and the employee has a preexisting
20disability that causes the employee’s earnings to be less at
21the time of the present injury than if the prior injury had not
22occurred, the employer’s liability for the combined disability
23shall be considered to be already partially satisfied to the
24extent of the percentage of disability for which the employee
25was previously compensated by the employer minus the percentage
26that the employee’s earnings are less at the time of the
27present injury than if the prior injury had not occurred.
28Additionally, the bill provides that a successor employer shall
29be considered to be the same employer if the employee became
30part of the successor employer’s workforce through a merger,
31purchase, or other transaction that assumes the employee into
32the successor employer’s workforce without substantially
33changing the nature of the employee’s employment.
34The bill amends Code section 85.45(1), concerning
35commutation, by removing the requirement that commutation
-9-1of future payments of compensation shall take place only
2upon application by a party to the commissioner and the
3written consent of all parties to the commutation or partial
4commutation.
5The bill strikes Code section 85.45(3), which provides that
6the parties to any commutation or partial commutation of future
7payments agreed to and ordered pursuant to Code section 85.45
8may agree that the employee has the right to benefits pursuant
9to Code section 85.27 for a specified period of time under such
10terms and conditions as agreed to by the workers’ compensation
11commissioner. The stricken Code section also provides that
12during the specified period of time, the commissioner shall
13have jurisdiction of the commutation or partial commutation
14agreement for the purpose of adjudicating the employee’s
15entitlement to benefits provided for in Code section 85.27 as
16provided in the agreement.
17Under current law pursuant to Code section 85.70, an
18employee who has sustained an injury resulting in permanent
19partial or permanent total disability that is compensable under
20Code chapter 85 (other than a shoulder injury compensable
21pursuant to Code section 85.34(2)(n)) and who cannot return
22to gainful employment because of such disability and who
23applies and receives approval from the workers’ compensation
24commissioner shall be entitled to a weekly payment of $100
25in addition to any other weekly benefit payment, during each
26full week that the employee is actively participating in a
27vocational rehabilitation program, which has been recognized
28by the vocational rehabilitation services division of the
29department of education. The bill removes the reference to
30a shoulder injury. The bill strikes a provision relating to
31the vocational training and education program for shoulder
32injuries.
33The bill amends Code section 85.71, concerning compensation
34for injuries that occur outside of the state. The bill amends
35the Code section to provide that the statute is applicable not
-10-1only if the employer has a place of business in this state and
2the employee regularly works at or from that place of business,
3but also if the employer has a place of business in this state
4and the employee is domiciled in this state.
5The bill amends Code section 535.3(1)(a), concerning
6interest due on unpaid weekly workers’ compensation payments,
7to provide that interest shall be allowed on all money due on
8judgments and decrees of courts at a rate calculated according
9to Code section 668.13, except for interest due pursuant to
10Code section 85.30 for which the rate shall be 10 percent
11per year. The bill eliminates paragraph “b” of Code section
12535.3(1) which provides that interest due pursuant to Code
13section 85.30 shall accrue from the date each compensation
14payment is due at an annual rate equal to the one-year treasury
15constant maturity published by the federal reserve in the most
16recent H15 report settled as of the date of injury, plus 2
17percent.
-11-asf/rn
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 85.23, Code 2019, is amended to read as
2follows:
385.23 Notice of injury — failure to give.
4Unless the employer or the employer’s representative shall
5have actual knowledge of the occurrence of an injury received
6within ninety days from the date of the occurrence of the
7injury, or unless the employee or someone on the employee’s
8behalf or a dependent or someone on the dependent’s behalf
9shall give notice thereof to the employer within ninety days
10from the date of the occurrence of the injury, no compensation
11shall be allowed. For the purposes of this section, “date of
12the occurrence of the injury” means the date that the employee
13knew or should have known that the injury was work-related.
14 Sec. 2. Section 85.26, subsection 1, Code 2019, is amended
15to read as follows:
161. An original proceeding for benefits under this chapter
17or chapter 85A, 85B, or 86, shall not be maintained in any
18contested case unless the proceeding is commenced within two
19years from the date of the occurrence of the injury for which
20benefits are claimed or, if weekly compensation benefits are
21paid under section 86.13, within three years from the date of
22the last payment of weekly compensation benefits. For the
23purposes of this section, “date of the occurrence of the injury”
24 means the date that the employee knew or should have known that
25the injury was work-related.
26 Sec. 3. Section 85.34, subsection 2, paragraph n, Code 2019,
27is amended by striking the paragraph.
28 Sec. 4. Section 85.34, subsection 2, paragraph v, Code 2019,
29is amended to read as follows:
30v. In all cases of permanent partial disability other than
31those hereinabove described or referred to in paragraphs “a”
32through “u” hereof, the compensation shall be paid during
33the number of weeks in relation to five hundred weeks as the
34reduction in the employee’s earning capacity caused by the
35disability bears in relation to the earning capacity that the
-1-1employee possessed when the injury occurred. A determination
2of the reduction in the employee’s earning capacity caused
3by the disability shall take into account the permanent
4partial disability of the employee and the number of years in
5the future it was reasonably anticipated that the employee
6would work at the time of the injury. If an employee who
7is eligible for compensation under this paragraph returns to
8work or is offered work for which the employee receives or
9would receive the same or greater salary, wages, or earnings
10than the employee received at the time of the injury, the
11employee shall be compensated based only upon the employee’s
12functional impairment resulting from the injury, and not in
13relation to the employee’s earning capacity. Notwithstanding
14section 85.26, subsection 2, if an employee who is eligible
15for compensation under this paragraph returns to work with the
16same employer and is compensated based only upon the employee’s
17functional impairment resulting from the injury as provided
18in this paragraph and is terminated from employment by that
19employer, the award or agreement for settlement for benefits
20under this chapter shall be reviewed upon commencement of
21reopening proceedings by the employee for a determination of
22any reduction in the employee’s earning capacity caused by the
23employee’s permanent partial disability.
24 Sec. 5. Section 85.34, subsection 2, paragraphs x and y,
25Code 2019, are amended by striking the paragraphs.
26 Sec. 6. Section 85.34, subsection 3, Code 2019, is amended
27to read as follows:
283. Permanent total disability.
29a. Compensation for an injury causing permanent total
30disability shall be upon the basis of eighty percent per week
31of the employee’s average spendable weekly earnings, but not
32more than a weekly benefit amount, rounded to the nearest
33dollar, equal to two hundred percent of the statewide average
34weekly wage paid employees as determined by the department
35of workforce development under section 96.19, subsection 36,
-2-1and in effect at the time of the injury. The minimum weekly
2benefit amount is equal to the weekly benefit amount of a
3person whose gross weekly earnings are thirty-five percent of
4the statewide average weekly wage. The weekly compensation is
5payable until the employee is no longer permanently and totally
6disabled during the period of the employee’s disability.
7b. Such compensation shall be in addition to the benefits
8provided in sections 85.27 and 85.28. No compensation shall
9be payable under this subsection for any injury for which
10compensation is payable under subsection 2 of this section.
11In the event compensation has been paid to any person under
12any provision of this chapter, chapter 85A, or chapter 85B
13for an the same injury producing a permanent disability, any
14such amounts so paid shall be deducted from the total amount
15of compensation payable for permanent total disability. An
16employee shall not receive compensation for permanent partial
17disability if the employee is receiving compensation for
18permanent total disability.
19c. An employee forfeits the employee’s weekly compensation
20for a permanent total disability under this subsection for a
21week in which the employee is receiving a payment equal to or
22greater than fifty percent of the statewide average weekly wage
23from any of the following sources:
24(1) Gross earnings from any employer.
25(2) Payment for current services from any source.
26d. c. An employee is not entitled to compensation for a
27permanent total disability under this subsection while the
28employee is receiving unemployment compensation under chapter
2996.
30 Sec. 7. Section 85.34, subsection 7, Code 2019, is amended
31to read as follows:
327. Successive disabilities.
33a. An employer is fully liable for compensating only that
34portion all of an employee’s disability that arises out of and
35in the course of the employee’s employment with the employer
-3-1and that relates to the injury that serves as the basis for
2the employee’s claim for compensation under this chapter,
3or chapter 85A, 85B, or 86. An employer is not liable for
4compensating an employee’s preexisting disability that arose
5out of and in the course of employment from a prior injury with
6the employer, to the extent that the employee’s preexisting
7disability has already been compensated under this chapter,
8or chapter 85A, 85B, or 86. An employer is not liable for
9compensating an employee’s preexisting disability that arose
10out of and in the course of employment with a different
11employer or from causes unrelated to employment.
12b. (1) If an injured employee has a preexisting disability
13that was caused by a prior injury arising out of and in
14the course of employment with the same employer, and the
15preexisting disability was compensable under the same paragraph
16of subsection 2 as the employee’s present injury, the employer
17is liable for the combined disability that is caused by the
18injuries, measured in relation to the employee’s condition
19immediately prior to the first injury. In this instance, the
20employer’s liability for the combined disability shall be
21considered to be already partially satisfied to the extent
22of the percentage of disability for which the employee was
23previously compensated by the employer.
24(2) If, however, an employer is liable to an employee for
25a combined disability that is payable under subsection 2,
26paragraph “v”, and the employee has a preexisting disability
27that causes the employee’s earnings to be less at the time of
28the present injury than if the prior injury had not occurred,
29the employer’s liability for the combined disability shall be
30considered to be already partially satisfied to the extent
31of the percentage of disability for which the employee was
32previously compensated by the employer minus the percentage
33that the employee’s earnings are less at the time of the
34present injury than if the prior injury had not occurred.
35c. A successor employer shall be considered to be the
-4-1same employer if the employee became part of the successor
2employer’s workforce through a merger, purchase, or other
3transaction that assumes the employee into the successor
4employer’s workforce without substantially changing the nature
5of the employee’s employment.
6 Sec. 8. Section 85.45, subsection 1, unnumbered paragraph
71, Code 2019, is amended to read as follows:
8Future payments of compensation may be commuted to a present
9worth lump sum payment only upon application of a party to
10the commissioner and upon written consent of all parties to
11the proposed commutation or partial commutation, and on the
12following conditions:
13 Sec. 9. Section 85.45, subsection 3, Code 2019, is amended
14by striking the subsection.
15 Sec. 10. Section 85.70, subsection 1, Code 2019, is amended
16to read as follows:
171. An employee who has sustained an injury resulting in
18permanent partial or permanent total disability, for which
19compensation is payable under this chapter other than an
20injury to the shoulder compensable pursuant to section 85.34,
21subsection 2, paragraph “n”, and who cannot return to gainful
22employment because of such disability, shall upon application
23to and approval by the workers’ compensation commissioner
24be entitled to a one hundred dollar weekly payment from the
25employer in addition to any other benefit payments, during each
26full week in which the employee is actively participating in a
27vocational rehabilitation program recognized by the vocational
28rehabilitation services division of the department of
29education. The workers’ compensation commissioner’s approval
30of such application for payment may be given only after a
31careful evaluation of available facts, and after consultation
32with the employer or the employer’s representative.
33Judicial review of the decision of the workers’ compensation
34commissioner may be obtained in accordance with the terms of
35the Iowa administrative procedure Act, chapter 17A, and in
-5-1section 86.26. Such additional benefit payment shall be paid
2for a period not to exceed thirteen consecutive weeks except
3that the workers’ compensation commissioner may extend the
4period of payment not to exceed an additional thirteen weeks if
5the circumstances indicate that a continuation of training will
6in fact accomplish rehabilitation.
7 Sec. 11. Section 85.70, subsection 2, Code 2019, is amended
8by striking the subsection.
9 Sec. 12. Section 85.71, subsection 1, paragraph a, Code
102019, is amended to read as follows:
11a. The employer has a place of business in this state and
12the employee regularly works at or from that place of business,
13or the employer has a place of business in this state and the
14employee is domiciled in this state.
15 Sec. 13. Section 535.3, subsection 1, Code 2019, is amended
16to read as follows:
171. a. Interest shall be allowed on all money due on
18judgments and decrees of courts at a rate calculated according
19to section 668.13, except for interest due pursuant to section
2085.30 for which the rate shall be ten percent per year.
21b. Notwithstanding paragraph “a”, interest due pursuant
22to section 85.30 shall accrue from the date each compensation
23payment is due at an annual rate equal to the one-year treasury
24constant maturity published by the federal reserve in the most
25recent H15 report settled as of the date of injury, plus two
26percent.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to workers’ compensation by reversing some
31of the changes to the Code that were made with the passage of
32House File 518 in 2017.
33The bill amends Code section 85.23, requiring notice of
34injury, and Code section 85.26(1), concerning limitations of
35actions, to remove definitions of “date of the occurrence of
-6-1the injury” to mean the date the employee knew or should have
2known that the injury was work-related.
3The bill removes a shoulder injury from the scheduled injury
4list for permanent partial disability in Code section 85.34(2)
5by striking paragraph “n”, which stated: “For the loss of a
6shoulder, weekly compensation during four hundred weeks”.
7The bill amends Code section 85.34(2)(v), concerning
8compensation for permanent partial disability for
9injuries other than scheduled injuries under Code section
1085.34(2)(a)-(u), to remove a provision that a reduction in the
11employee’s earning capacity caused by a disability must take
12into account the employee’s permanent partial disability and
13the number of years in the future it was reasonably anticipated
14the employee would work at the time of the injury. The bill
15removes a provision that an employee who returns to work or
16is offered work for the same or more money than the employee
17received when injured shall be compensated only for functional
18disability, and not in relation to earning capacity. The
19bill also removes a provision that notwithstands Code section
2085.26(2), regarding limitations of actions.
21The bill strikes Code section 85.34(2)(x), concerning
22permanent partial disability. The paragraph provides that in
23all cases of permanent partial disability described in Code
24section 85.34(2)(a)-(u), or Code section 85.34(2)(v), when
25determining functional disability and not loss of earning
26capacity, the extent of loss or percentage of permanent
27impairment shall be determined solely by utilizing the guides
28to the evaluation of permanent impairment, published by the
29American medical association, as adopted by the workers’
30compensation commissioner by rule pursuant to Code chapter 17A.
31 The Code section prohibits lay testimony or agency expertise
32from being utilized in making this determination.
33The bill strikes Code section 85.34(2)(y), concerning
34permanent partial disability. The paragraph provides that
35compensation for permanent partial disability for an injury
-7-1shall terminate on the date when compensation for permanent
2total disability for any injury begins. The Code section
3prohibits an employee from receiving compensation for permanent
4partial disability if the employee is receiving compensation
5for permanent total disability.
6The bill amends Code section 85.34(3)(a), concerning
7permanent total disability, to provide that the weekly
8compensation is payable “during the period of the employee’s
9disability”, rather than “until the employee is no longer
10permanently and totally disabled”.
11The bill amends Code section 85.34(3)(b) to provide that in
12the event compensation has been paid to any person under any
13provision of Code chapter 85, 85A, or 85B for the same injury,
14rather than an injury, producing a permanent disability, any
15such amount so paid shall be deducted from the total amount of
16compensation payable for permanent total disability. The bill
17also amends the paragraph to remove a provision which provided
18that “an employee shall not receive compensation for permanent
19partial disability if the employee is receiving compensation
20for permanent total disability”.
21The bill strikes Code section 85.34(3)(c), which provides
22that an employee forfeits the employee’s weekly compensation
23for a permanent total disability under this subsection for a
24week in which the employee is receiving a payment equal to or
25greater than 50 percent of the statewide average weekly wage
26from any of the following sources: gross earnings from any
27employer or payment for current services from any source.
28The bill amends Code section 85.34(7), concerning successive
29disabilities, to provide that an employer is fully liable for
30compensating all of an employee’s disability that arises out
31of and in the course of the employee’s employment with the
32employer and removes the requirement that it relate to the
33injury that serves as the basis for the employee’s claim for
34compensation under Code chapter 85, 85A, 85B, or 86. The bill
35also removes a provision that an employer is not liable for
-8-1compensating an employee’s preexisting disability that arose
2out of and in the course of employment from a prior injury with
3the employer, to the extent that the employee’s preexisting
4disability has already been compensated under Code chapter
585, 85A, 85B, or 86. The bill provides that if an injured
6employee has a preexisting disability that was caused by a
7prior injury arising out of and in the course of employment
8with the same employer, and the preexisting disability was
9compensable under Code section 85.34(2) as the employee’s
10present injury, the employer is liable for the combined
11disability that is caused by the injuries, measured in relation
12to the employee’s condition immediately prior to the first
13injury. In this instance, the employer’s liability for the
14combined disability shall be considered to be already partially
15satisfied to the extent of the percentage of disability for
16which the employee was previously compensated by the employer.
17The bill provides, however, that if an employer is liable to
18an employee for a combined disability that is payable under
19Code section 85.34(2)(v) and the employee has a preexisting
20disability that causes the employee’s earnings to be less at
21the time of the present injury than if the prior injury had not
22occurred, the employer’s liability for the combined disability
23shall be considered to be already partially satisfied to the
24extent of the percentage of disability for which the employee
25was previously compensated by the employer minus the percentage
26that the employee’s earnings are less at the time of the
27present injury than if the prior injury had not occurred.
28Additionally, the bill provides that a successor employer shall
29be considered to be the same employer if the employee became
30part of the successor employer’s workforce through a merger,
31purchase, or other transaction that assumes the employee into
32the successor employer’s workforce without substantially
33changing the nature of the employee’s employment.
34The bill amends Code section 85.45(1), concerning
35commutation, by removing the requirement that commutation
-9-1of future payments of compensation shall take place only
2upon application by a party to the commissioner and the
3written consent of all parties to the commutation or partial
4commutation.
5The bill strikes Code section 85.45(3), which provides that
6the parties to any commutation or partial commutation of future
7payments agreed to and ordered pursuant to Code section 85.45
8may agree that the employee has the right to benefits pursuant
9to Code section 85.27 for a specified period of time under such
10terms and conditions as agreed to by the workers’ compensation
11commissioner. The stricken Code section also provides that
12during the specified period of time, the commissioner shall
13have jurisdiction of the commutation or partial commutation
14agreement for the purpose of adjudicating the employee’s
15entitlement to benefits provided for in Code section 85.27 as
16provided in the agreement.
17Under current law pursuant to Code section 85.70, an
18employee who has sustained an injury resulting in permanent
19partial or permanent total disability that is compensable under
20Code chapter 85 (other than a shoulder injury compensable
21pursuant to Code section 85.34(2)(n)) and who cannot return
22to gainful employment because of such disability and who
23applies and receives approval from the workers’ compensation
24commissioner shall be entitled to a weekly payment of $100
25in addition to any other weekly benefit payment, during each
26full week that the employee is actively participating in a
27vocational rehabilitation program, which has been recognized
28by the vocational rehabilitation services division of the
29department of education. The bill removes the reference to
30a shoulder injury. The bill strikes a provision relating to
31the vocational training and education program for shoulder
32injuries.
33The bill amends Code section 85.71, concerning compensation
34for injuries that occur outside of the state. The bill amends
35the Code section to provide that the statute is applicable not
-10-1only if the employer has a place of business in this state and
2the employee regularly works at or from that place of business,
3but also if the employer has a place of business in this state
4and the employee is domiciled in this state.
5The bill amends Code section 535.3(1)(a), concerning
6interest due on unpaid weekly workers’ compensation payments,
7to provide that interest shall be allowed on all money due on
8judgments and decrees of courts at a rate calculated according
9to Code section 668.13, except for interest due pursuant to
10Code section 85.30 for which the rate shall be 10 percent
11per year. The bill eliminates paragraph “b” of Code section
12535.3(1) which provides that interest due pursuant to Code
13section 85.30 shall accrue from the date each compensation
14payment is due at an annual rate equal to the one-year treasury
15constant maturity published by the federal reserve in the most
16recent H15 report settled as of the date of injury, plus 2
17percent.
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