The bill amends the Worker's Disability Compensation Act of 1969 by revising Section 371 and adding a new Section 612. Key changes in Section 371 include the clarification of how an injured employee's weekly loss in wages is calculated, emphasizing that it must not exceed the employee's average weekly earnings at the time of injury. The definition of "average weekly wage" is also updated to include overtime, premium pay, and cost of living adjustments, while excluding fringe benefits that continue during disability and discretionary bonuses. Additionally, the bill introduces a provision for employees working for smaller employers (those with 50 or fewer employees) regarding the calculation of average weekly wages based on regular pay for overtime hours, which will be effective until December 31, 2028.

Section 612 establishes that insurers providing worker's compensation insurance to employers with fewer than 50 employees must adjust the employer's premium rate based on the new calculation method outlined in Section 371(8). If this adjustment results in a lower premium rate, the insurer is required to apply it. This section, like the previous one, will also be in effect until December 31, 2028. Overall, the bill aims to enhance the clarity and fairness of wage calculations for injured workers while also addressing the insurance premium rates for smaller employers.

Statutes affected:
House Introduced Bill: 418.371