The bill amends the Worker's Disability Compensation Act of 1969 to enhance clarity and fairness in employee compensation for work-related injuries and disabilities. Key updates include a refined definition of compensable personal injuries, which now explicitly includes injuries that cause, contribute to, or aggravate a medically distinguishable pathology. The bill also emphasizes that mental disabilities arising 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 a burden of proof on employers regarding bona fide offers of reasonable employment, which could impact an employee's entitlement to wage loss benefits.

Further amendments focus on the calculation of after-tax average weekly wages and the coordination of benefits for employees receiving compensation. The bill specifies how after-tax wages are calculated, mandates the publication of average weekly wage tables, and outlines conditions under which weekly or lump-sum payments may be reduced if employees receive benefits from other sources. It also clarifies that employees are not required to apply for early Social Security benefits or reduced pension benefits, ensuring their rights to compensation are protected. The bill repeals sections 302 and 431 of the existing act, indicating a significant policy shift in handling disability compensation claims. Overall, these changes aim to streamline processes and ensure equitable treatment for employees.

Statutes affected:
Senate Introduced Bill: 418.301