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Post-Taher: Best Practices for SLU and non-SLU Claims In New York

06.26.2020

As we know in 2018, the Third Department issued a decision in Taher v. Yiota Taxi which was considered a fairly significant decision. That ruling opened the door for claimants with an injury to an extremity as well as a non-schedulable body part (generally neck and/or back) to secure a schedule loss of use award (SLU) even if there is permanency to the neck or back. Prior to that Decision, the Board had taken the position that a non-schedulable body part’s permanency trumps a potential SLU. Accordingly, an SLU could only be awarded in such a case if a finding was made of no permanency to the neck/ back. This did give rise to circumstances in which a claimant could have clear permanency to the neck or back- even based on spine surgery- but still pursue a schedule loss of use if her or she is back at work without loss of earnings.

Following Taher, the Board adjusted the way it handled these claims, but still largely maintained the position that there cannot be a permanency finding to the neck or back and an SLU. The Board created a form to be signed when a schedule loss of use is being stipulated to but the neck or back is also established. This Stipulation Attachment was addressed in the Board’s Subject Number 046-1211 of 10/4/2019.

Last month, the Appellate Division again addressed this issue in 3 decisions: Matter of Arias v City of New York, Matter of Saputo v Newsday, and Matter of Fernandez v New York University Benefits. The Court found that the Board was not properly complying with the prior Taher holding and found, “were a claimant who has sustained both schedule and nonschedule permanent injuries in the same work-related accident has returned to work at preinjury wages and, thus, receives no award based on his or her nonscheduled permanent partial disability classification, he or she is entitled to an SLU award.”

The Board has responded to these decisions and has essentially backtracked from the position it took post-Taher. The 10/4/2019 Subject Number is no longer in effect. The Board has indicated that it will now permit claimants in this situation to obtain a schedule loss of use award even though there is permanency to the neck/back. Please note that the Board has indicated that it will permit reopening of prior claims in which an SLU was not awarded because of permanency to the neck or back. If an SLU is paid and the claimant later goes out of work and is awarded PPD benefits, the carrier will be entitled to credit for the SLU award.

The decisions do contain several noteworthy provisions which we will discuss:

1.      We can no longer claim that an SLU is never payable unless a finding is made that there is no permanency to the neck/back.

2.      However, as per the recent Decisions, this is only applicable when the claimant has returned to work at pre-injury wages. Accordingly, if a claimant is working, but earning less money, or if a claimant is only pursuing the SLU award after retirement, we can argue that these holdings do not apply.

3.      Previously, even if a claimant was out of work but was found to not be attached to the labor market, an SLU would often be awarded. However, we can maintain that a claimant who is not attached to the labor market and who has permanency to the neck or back is not eligible for an SLU award.

4.      We will also take the position that if a given claimant is pursuing an SLU award when there is permanency to the neck or back, the WCLJ should address LWEC at the same hearing at which the award and permanency findings are being made. The reason for this is that such a claimant is back at work without a reduction in earnings. In most cases, that will be a very significant mitigating factor in assessing LWEC. In a hypothetical claim in which a claimant is found to have permanency to the back and is awarded an SLU, we will ask the Judge to also make a determination as to LWEC, and that said LWEC should be a very low percentage. If the claimant never reopens the claim to pursue PPD benefits, the percentage LWEC will not matter. However, because this claimant may well reopen in the future to pursue PPD benefits, a low LWEC percentage will protect us against significant future exposure for indemnity benefits.

If, in the example posed, the claimant has a claim established to the back and both shoulders with an AWW of $1,200.00 and is now pursuing permanency. The claimant is back at work full duty. If the claimant is awarded a 7.5% SLU of each arm, that award would equal 46.8 weeks at $800.00, or $37,440.00. If the claimant was also found to have a 25% LWEC. That would be worth 250 weeks of benefits at $200.00, once the cap begins to run (if ever). That gross award is $50,000.00- but we would have credit for the SLU award, which means that the PPD benefits, if ever claimed, would effectively be worth only an additional $12,560.00.

If, however, the Judge waits until the claimant goes out of work to assign an LWEC percentage, it is likely to be much higher, as the main mitigating factor- the claimant working without a loss of earnings- is no longer applicable. In addition, the claimant would be older if the Judge waits until he or she stops work, which would be a potential aggravating factor. While claimant’s counsel may object to an LWEC finding under these circumstances, our position will be that LWEC must be determined when permanency is found. Please note that even under the position we take, the number of weeks will not begin to run until the claimant goes out of work. We will also maintain that if the cessation of work is unrelated (perhaps an age-related retirement), we will maintain that the lost time is unrelated and no awards should be made.

Filed Under: Blog Tagged With: New York

Jones Jones LLC Is Proud to Announce the Opening of our New Jersey Workers’ Compensation Practice

04.15.2020

We would like to take this opportunity to thank you for playing such an important role in the rapid growth that we have experienced over the past few years.

Now it will be even easier for employers, insurance carriers, third party administrators and other businesses in New Jersey to gain access to the legal experience, innovation, efficiency and excellence that has made us a leading defense team in the workers’ compensation industry.

Clients of our New Jersey workers’ compensation practice expect to receive the same high quality, client-focused service that we have been providing in New York for over 100 years.

That includes:

  • One of the industry’s highest workers’ compensation settlement rates – a 75% claim closure
  • Responsive communication – we promise a 24-hour turnaround time for all communications.
  • An elite loss transfer recovery rate of 91.3% as compared to the industry average of 64% of amount sought.
  • And much more.

While Jones Jones LLC has a prestigious 100-year history, you can count on us to continue to evolve and expand so that you, our clients, always have responsive, convenient access to the superior legal service you need.

“Legal Defense Refreshed” is not just an empty slogan; we work hard every day to stay on the leading edge of workers’ compensation defense.

Ready to make a referral to our New Jersey workers’ compensation practice? Contacts us at clientservices@jonesjonesllc.com.

Filed Under: Blog, News Tagged With: New Jersey

How Will COVID-19 Impact Your Claims in New York and New Jersey

04.06.2020

As Jones Jones LLC continues to monitor the COVID-19 situation, your health and safety remain our top priority. We stand at the ready to assist you with any guidance you may need during these challenging times.  Our firm has taken several measures to ensure that business will continue from an operational standpoint with no disturbance.  Our firm’s technological practices have allowed staff and attorneys to continue working and communicating with clients and business partners with no change.  With over 100 years in the industry, Jones Jones LLC has seen its share of turbulent times, and we will continue to forge on with all of you — our valued business partners and friends.  Thank you, now more than ever, for being a part of our community.

The World Health Organization declared COVID-19 a pandemic on March 11, 2020. As of March 13, 2020, there are over 300 confirmed cases of COVID-19 in New York State. While there are currently less documented cases in New Jersey, we do expect that both states are to see an influx in workers’ compensation claims related to COVID-19.

Everything You Need to Know About Compensability of COVID-19 under Workers’ Compensation Law

New York

To qualify for a workers’ compensation award in New York, a worker must sustain an injury or illness through the course of his or her employment. Mere exposure is not sufficient for an award. The burden of proof is always on the worker to establish that he or she contracted COVID-19 from his or her workplace. Therefore, in general, claims for benefits from an average worker may be difficult to establish and should be denied from the onset.

Successful claims related to COVID-19 may be easier to establish from emergency response workers under the occupational disease provisions of NY WCL § 2(15). To establish an occupational claim, the burden is on the employee to pinpoint a link between COVID-19 and a peculiar characteristic of his or her employment. Thus, healthcare workers tasked with caring for COVID-19 infected patients and the potential for continued exposure to COVID-19 may be sufficient to establish an occupational claim.

Exposure to COVID-19 in the workplace may also be established as an accidental injury pursuant to NY WCL § 2(7). The definition of injury notes, “Only accidental injuries arising out of and in the course of employment and such disease or infection as may naturally and unavoidably arise therefrom.” Again, the worker has the burden of proof and must establish a causal relationship between the employment and COVID-19 with competent medical evidence. See Sale v. Hemsley-Spear, Inc., 6 A.D. 3d 999 (3d Dept. 2004). Accidental injury claims related to COVID-19 are likely harder to establish. With the ongoing community outbreaks of COVID-19, a worker will have difficulty establishing that he or she contracted the virus in his or her place of employment, rather than in the public.

New Jersey

N.J.S.A. 34:15-36 defines permanent partial disability and explicitly notes, “Injuries such as minor lacerations, minor contusions, minor sprains, and scars which do not constitute significant permanent disfigurement, and occupational disease of a minor nature such as mild dermatitis and mild bronchitis shall not constitute permanent disability within the meaning of this definition.” For many of the individuals afflicted, COVID-19 presents as a minor respiratory infection.  The definition of permanent partial disability suggests that in those instances, COVID-19 would not be compensable.

There is also a provision for compensable occupational diseases contained in the New Jersey Workers’ Compensation Statute. Therein, a disease is deemed compensable if it arises out of or in the course of employment and is due to a material degree of causes and conditions which are characteristic of or to a peculiar trade or place of employment. See N.J.S.A 34:15-31. A petitioner most likely would not be able to prove that COVID-19 was caused by a characteristic of his or her work, given the virus can be caught in the public.  An area where we may see compensable claims for COIVD-19 would be from emergency service workers. Emergency service workers are defined under N.J.S.A. 34:15-31.4. The Workers’ Compensation Statute shifts the presumption of compensability in occupational exposure to diseases, including airborne diseases, when public safety workers are exposed to, or have treated individuals with diseases. See N.J.S.A. 34:15-31.5. Therefore, it is likely to see some compensable COVID-19

workers’ compensation claims, but the overwhelming majority should be denied. It is important to remember that the Petitioner, regardless if he or she is an emergency service worker, has the burden of proving that the injury or illness is caused by and arises out of his or her employment.

In light of the COVID-19 pandemic, many companies are encouraging its employees to work remotely, if possible.

This act of social distancing should act as a preventative measure, and will help decrease the amount of claims for benefits related to COVID-19.

If you would like assistance in responding to specific COVID-19 claims, please contact us at clientservices@jonesjonesllc.com (mailto:clientservices@jonesjonesllc.com) so that we can tailor a specific response strategy to the particular facts in your case.

Filed Under: Blog

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