The current emerging debate in the world of workers’ compensation today is whether the states should allow employers to opt out of workers’ compensation and develop their own workplace injury plans. The workers’ compensation experts all join in this debate discussing the pros and cons of such plan. But nothing can demonstrate the effectiveness of such plans better than real examples from the state of Texas and the state of Oklahoma.
State laws in both Oklahoma and Texas allow employers to opt out of workers’ compensation and develop their own workplace injury plans. The result? Nearly 1.5 million workers in Texas and Oklahoma do not receive state-mandated benefits under the heavily regulated workers’ compensation and are dependent instead on alternative, largely unregulated benefits plans controlled by employers. These plans generally cover fewer injuries, cut off benefits payment sooner, control access to doctors, and even impose mandatory settlement. In Oklahoma, the employers even blatantly violate the law, yet the regulators say they are powerless to control.
The NPR’s analysis report found that many opt-out plans, particularly in Texas, cover medication only for about two years, while workers’ comp pay as long as necessary. The plans further exclude payment for things like chiropractor visits, injuries caused by exposure to silica dust or asbestos. And mostly importantly, any appeals are often controlled by employers.
Proponents of the opt-out plans say they are not designed to reduce benefits but rather to impose some sanity on a bureaucratic system that is expensive and slow. That is, the plans provide a different path for injured workers. They avoid legislative battles over workers’ comp reforms. Yet, what the proponents of the plans miss is that such single piece of legislation gives employers the ability to write their own workplace injury benefit plan.
Injured workers in Texas and Oklahoma have been put under ridiculous requirements to receive workers’ compensation benefit. The workers’ compensation benefit under the opt-out plans are taxable, while the state workers’ comp benefit is not. One company in Texas requires its employees to report workplace injuries to a toll-free number within 24 hours. Or some employers have a provision that gives employers the right to determine when to settle and how much to pay. If workers don’t accept the terms, then no further benefits will be provided. What is unfortunate is that the piece of legislation, which grants employers the option to opt out of that state workers’ comp plan, provides no regulation of these opt-out plan.
Never say never. But the real results of the opt-out plans show that the workers’ comp system and particularly injured workers are not ready to adopt such new idea. The plans, as Texas and Oklahoma prove, fail to adequately the injured workers’ rights. Many injured workers continue to suffer under the call of their employers. And if there is one thing I know from all my years of practice, it would be to never entrust the responsibility of protecting injured workers’ rights in the employers’ hands.
The Poirier Law Firm’s goal is to make sure that all of our injured workers promptly and efficiently, receive his/her necessary medical treatment. So if you or a family member have been hurt at work and have any issues with promptly receiving medical treatment, call Poirier Law today for help and for a free consultation. The Poirier Law Firm has represented injured workers for over 16 years. You deserve to have a zealous advocate in your corner!