The bill aims to modify the compensation restrictions under the Workers' Compensation Law in Arkansas, specifically addressing the limits of compensation for disabilities resulting from workplace injuries. It introduces new provisions that establish a maximum weekly benefit of seventy percent (70%) of the average weekly wage for employees injured on or after the effective date of the act, with a cap on annual benefits set at one hundred twenty thousand dollars ($120,000). Additionally, it revises the compensation rate for permanent partial disabilities, setting it at a maximum of seventy percent (70%) of the employee's average weekly wage for injuries occurring after the act's effective date, while maintaining a minimum benefit of twenty dollars per week.

Furthermore, the bill clarifies that the new compensation rates will apply to scheduled permanent injuries, excluding those resulting in amputation or permanent total loss of use of a member, which will instead be compensated at the employee's total disability rate. The previous provisions that limited the application of these rates to injuries occurring after January 1, 1996, have been removed, allowing for broader applicability of the new compensation structure.

Statutes affected:
Old version SB285 V2 - 3-20-2025 02:10 PM: 11-9-501(b), 11-9-501(d)
Old version SB285 Original - 2-24-2025 04:28 PM: 11-9-501(b), 11-9-501(d)
SB 285: 11-9-501(b), 11-9-501(d)