Workers' Compensation - A Modern Fairy Tale

Saturday, November 5, 2005 | 0

by Mary Bailey

Once upon a time, in the greatest nation in the world, the United States Congress passed the "Occupational Safety and Health Act of 1970", (or the OSHA act). It was a very, very good law for the hard working people of this very great nation. It said:

"...the vast majority of American workers, and their families, are dependant on workmen's (sic worker's) compensation for their basic economic security in the event such worker suffers disabling injury in the course of their employment; and that the full protection of American workers from job-related injury or death requires an adequate, prompt, and equitable system of workmen's compensation as well as an effective program of occupational health and safety regulation..."

A short time later, The American Congress remarked:

"In recent years serious questions have been raised concerning the fairness and adequacy of present workmen's compensation laws in light of the growth of the economy, the changing nature of the labor force, increases in medical knowledge, changes in the hazards associated with various types of employment, new technology creating new risks to health and safety, and increases in the general level of wages and the cost of living."

Because of these serious concerns, the Congress established the National Commission on State Workmen's Compensation Laws to "undertake a comprehensive study and evaluation of State workmen's compensation laws in order to determine if such laws provide an adequate, prompt and equitable system of compensation." July 31, 1972, was the date Congress decided upon for the transmittal of the report of the Commission to the President and Congress. The Commission was a large un-unified group, and no one truly expected them to complete the report on time (as often happens in large committees). But, lo and behold, to everyone's surprise, the report was completed and turned over right on time, and our tale continues.

The 1972 Commission concluded: "...State workmen's compensation laws are, in general neither adequate nor equitable...Perhaps in another decade or two, an attractive alternative to workmen's compensation will emerge...For the foreseeable future we are convinced that, if our recommendations for a modern workmen's compensation program are adopted, the program should be retained." It was asked by some, why this problem had gone unresolved for so long. "We know why," responded the Commission. There are numerous reasons:

a) Lack of interest by State legislatures and the general public

b) Lack of understanding by State legislatures and the general public

c) In-fighting among special interest groups

d) The complexity of the problems

e) The irrational fear that the increases in premiums would drive employers away to States with less generous benefits and lower costs. (THIS, was called "The Main Barrier.")

The Congress, OSHA and the Commission knew they had to conquer "The Main Barrier" before the problem could be resolved. Could they ever find the solution? YES!

After considering an immediate complete federal takeover, after considering voluntary guidelines followed by a complete federal takeover in a few years if deficiencies are not corrected promptly, the Commission decided that the main barrier could be overcome if : The States were required to meet certain minimum standards for the essential requirements of a State workmen's compensation law no later than July 1, 1975.

Now, you might very well be asking, "What are these Essential Elements" established by that great and benevolent Commission , so very long ago and meant to be fully complied with by the date of July 1, 1975.

THE ESSENTIAL ELEMENTS:

1. Compulsory Coverage

2. No occupational or numerical exemptions to coverage

3. Full coverage of work related diseases

4. Full medical and physical rehabilitation services without arbitrary limits

5. Employee's choice of jurisdiction for filing interstate claims

6. Adequate weekly cash payments for Temporary Total Disability (TTD), Permanent Total Disability (PTD) and Death cases

7. No arbitrary limits on duration or sum of benefits

The commission voted unanimously that Congressional intervention may be needed to bring about reforms in the State systems. The threat of, or if necessary, the enactment of Federal mandates will remove from each State the main barrier to effective workmen's compensation reform: The terrible irrational fear that compensation costs may drive employers to move away to States where protection for disabled workers is inadequate but less expensive. The Commission, on a majority vote, gave the States until July 1, 1975 to comply with The Essential Elements.

Keeping in mind, that this Commission mandated total compliance by the States by the date of July 1, 1975, you the reader must have concluded that this Fairy Tale had to have a happy ending as do all good Fairy Tale's. Sadly, I must inform you that THIS Fairy Tale has NO happy ending. As of this date, July 1, 2001, almost 26 years to the day that this mandate was supposed to have been complied with, NOT EVEN ONE STATE OUT OF 50 HAS COMPLIED WITH THE ESSENTIAL ELEMENTS! In fact, not even one State out of 50 has even come close to compliance!

The truth of the matter is that, in the intervening 26 years since this mandate was proclaimed, the individual State Worker's Compensation Systems have further deteriorated to such a devastating degree that they are not even remotely as adequate as they were when the Commission decided they were inadequate enough to mandate The Essential elements!

An American worker who becomes injured under today's individual State Workers' Compensation Systems has become a victim of a holocaust, unequalled and unparalleled in American history.

We, the Injured Workers of America have waited twenty six years for Congressional intervention which was promised when the Essential Elements Mandate was proposed.

It's time for our Congress to act on that promise.

by Mary Bailey
President, VOICES, Inc.
Crs012001@cs.com
www.voicesflorida.com

-------------------------------

The views and opinions expressed by the author are not necessarily those of workcompcentral.com, its editors or management.