The bill amends the Worker's Disability Compensation Act of 1969 to enhance definitions and processes related to employee compensation for work-related injuries and disabilities. Key updates include a clear definition of compensable injuries, emphasizing that mental disabilities and conditions related to aging are compensable if significantly aggravated by employment. The bill also establishes that employees must demonstrate a connection between their disability and wage loss to receive benefits, placing a burden of proof on employers regarding reasonable employment offers. Additionally, it clarifies the conditions under which benefits may be terminated, particularly in cases of incarceration or discrimination against employees exercising their rights.

Further amendments focus on the calculation of the "after-tax average weekly wage" for disabled employees, specifying that it should be determined by reducing the average weekly wage by applicable federal and state income taxes. The bill mandates the publication of average weekly wage tables and outlines conditions for reducing weekly or lump sum payments if employees receive other benefits. It also clarifies that employees are not required to apply for early Social Security benefits and updates the definition of "after-tax amount." The bill repeals sections 302 and 431 of the existing act, indicating a significant shift in the handling of worker's compensation, while ensuring that the rights and benefits of employees are enhanced and streamlined.

Statutes affected:
Senate Introduced Bill: 418.301