The bill amends the Worker's Disability Compensation Act of 1969 to enhance and clarify provisions related to employee compensation for work-related injuries and disabilities. Key updates include the stipulation that employees suffering personal injuries arising from employment must be compensated according to the act, with compensable injuries defined as those creating a medically distinguishable pathology from pre-existing conditions. The bill also emphasizes that mental disabilities resulting from actual employment events are compensable and clarifies the presumption of being in the course of employment for employees commuting to and from work. Additionally, it introduces new definitions and clarifications regarding disability and wage loss, including the establishment of wage loss benefits based on the employee's after-tax average weekly wage, and specifies that refusal of a bona fide offer of reasonable employment may result in the loss of wage loss benefits.

Furthermore, the bill modifies existing laws regarding the calculation of after-tax average weekly wages and the coordination of benefits for employees receiving compensation due to work-related injuries. It mandates that the director publish tables of average weekly wages and 80% of after-tax average weekly wages annually, which will be used for calculating benefits. The bill also clarifies that employees are not required to apply for early Social Security benefits and refines the definition of "after-tax amount" to include specific calculations based on federal and state taxes. Notably, the bill repeals sections 302 and 431 of the existing act, indicating a significant shift in how certain aspects of worker's compensation are managed, while ensuring that the amendments apply to personal injuries and work-related diseases occurring on or after the effective date of the amendatory act.

Statutes affected:
Senate Introduced Bill: 418.301