Viewpoint: 6 Ways to Handle Work Comp Claims for Coronavirus; Only 1 Makes Sense

Workers’ compensation disability claims based on COVID-19 are already rolling in and thousands more are expected. Here are six approaches to handling these claims:

Ironically, funding and the mechanism for this sweeping, indiscriminate and logical compensation scheme was passed by Congress in March.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law by President Trump on March 27, provides up to 10 days of paid sick leave at two-thirds of regular salary, up to $511 per day. This is much more money than any state workers’ compensation plan pays. The worker needs to prove nothing and gets more money. The employer loses nothing – the act allows the employer to take a 100% credit for benefits paid against its further obligations to pay federal tax employee wages. Problem solved.

If a worker has disability spanning more than 10 days, the act provides for super-enhanced unemployment compensation – even though the worker is sick and unable to work – for up to 16 more weeks, and at rates between $875 and $1,500 per week, depending on the state. Again, much higher than workers’ compensation benefits, and no skin off the employer’s back.

So instead of legislation and court challenges and litigation, why not just give workers more money, and charge the employer less money, by using the existing CARES Act benefits?

One reason is attorneys. When a worker gets sick pay or unemployment, attorneys make no money. If an attorney forces the worker into the workers’ compensation system, the attorney takes a cut.

Another reason could be medical bills, but not really. Under comp, medicals are all paid by the employer. Under sick leave and unemployment, the bills are payable by the workers’ health insurance, which is usually provided and paid for, in whole or in part, by the employer. Typically, it makes little difference to the worker whether the health insurer or comp insurer foots the medical bills, so there’s not much of a reason to force these cases into the comp system.

I hate to give up a potentially lucrative business defending against comp claims, but sometimes common sense should prevail.