States Step Up Vocational Comp Coverage

Monday, April 4, 2022 | 0

More states are aiming to require workers’ compensation coverage for those enrolled in career apprenticeships and technical schools.

Most recently, Indiana, Oklahoma and Wyoming sought to join states where the coverage is required; California, Georgia, Kentucky, Maryland, Tennessee and Texas have passed legislation that calls on local education agencies to provide workers’ compensation coverage for students participating in work-based learning, according to the Atlanta-based Southern Regional Education Board.

Safety educators and others familiar with the legislative trend say such regulations help bridge a gap. Opposition to legislation expanding workers' compensation coverage generally comes down to cost, as insuring inexperienced workers in risky professions such as construction and manufacturing is typically expensive. A good safety program can help quell fears and potential claim activity, experts say.

In Indiana, Rep. Bob Behning, R-Indianapolis and co-sponsor of HB 1094, which would provide workers' compensation insurance for youth apprentices under the age of 18, said such coverage creates a pathway to employment while minimizing employer liability risk.

“As we have had discussions with a lot of employers, there is concern about the fact that those kids — because they are kids, they’re juniors — potentially have a negative impact on employers, comp, group insurance and/or liability,” Behning said.

HB 1094 was signed into law on March 15. The law calls on the state Department of Education to enter into an agreement with employers to pay for workers’ compensation insurance coverage for students enrolled in a work-based learning course by no later than Dec. 31, 2022.

Oklahoma’s HB 2384, introduced in 2021, would provide the same workers’ compensation coverage to work-based learning employees and apprentices, paid and unpaid, and included provisions on premium reductions of up to 5%. The bill died in committee hearings in this year’s legislative session. The bill's sponsor, Rep. Kyle Hilbert, R-Bristow, said he expects the issue to be taken up again next year.

In Wyoming, HB 239 sought to broaden employment and apprenticeship opportunities, creating a workers' compensation policy program in which student learners would be covered by employers. The bill died in the Senate in March.

Business Insurance is a sister publication of WorkCompCentral. More stories are here.