WORKERS' COMP BILL OK'D

Bredesen's proposal approved after efforts to make changes fail

By KARIN MILLER AND TOM SHARP, Associated Press
May 21, 2004

NASHVILLE - Gov. Phil Bredesen's proposed overhaul of the state workers' compensation system was approved Thursday, putting an end to one of the few contentious issues of the legislative session.

The bill passed the Senate 28-4 after supporters defeated several efforts to make major changes. It went back to the House for concurrence on minor amendments and was sent to Bredesen for his signature into law.

"This is something I think is a real victory for working people in this state," Bredesen said. "I've always felt this was not about employers versus working people. It is about how you create jobs, how you provide opportunities for people to have jobs."

The workers' compensation bill is a major push by the governor, who says Tennessee is losing jobs because the current system is too unpredictable and costly. Opponents find his proposal too punitive to injured workers.

The two Senate Democratic leaders who sponsored the bill for the administration, Joe Haynes and Ward Crutchfield, had such problems with it they prevented their colleagues from voting for a few days - in hopes of convincing the governor to make changes.
That didn't happen.

Haynes, who called the bill "a poor excuse for workers' comp reform," eventually voted for it, but Crutchfield voted against it. The Chattanooga attorney said it was a blow to Tennessee workers.

Haynes, a Goodlettsville attorney, called the bill "my baby, but it sure is ugly."

The biggest disagreement was over a provision that lowers a multiplier used to determine how much money can be paid to injured workers who return to their jobs. The current rate is 2.5; the bill would lower that to 1.5.

That change would lower a worker's benefits by about 40 percent, saving companies an estimated $42 million a year. An effort to increase the multiplier to 1.75 was defeated.

So was an effort to allow injured workers to file suit before they participate in mediation, which would become mandatory under the bill.

Sen. Larry Trail, a Murfreesboro Democrat and attorney who has handled dozens of workers' comp cases for companies such as Nissan, said he was disappointed with the bill. He said it doesn't reform what he called a "warped system," but merely "skims 40 percent off the top."

He wanted the definition of injury to be tightened. He said it would save companies millions of dollars by prohibiting compensation for injuries that are not job-related.

The administration promises that workers' compensation reform will continue to be on the table.

"There's a lot yet to do. This bill won't be perfect," said Anna Windrow, a lobbyist for Bredesen.

The legislation would require the state to implement a medical fee schedule for doctors who handle workers' comp cases, in hopes of lowering costs.

It also includes a prompt pay requirement to ensure injured workers receive their benefits more quickly.