CERTIFICATION OF ENROLLMENT HOUSE BILL 1927 Chapter 144, Laws of 2024 68th Legislature 2024 Regular Session TIME-LOSS COMPENSATION—FIRST THREE DAYS—DURATION OF DISABILITY EFFECTIVE DATE: June 6, 2024—Except for section 2, which takes effect July 1, 2025. Passed by the House February 6, 2024 CERTIFICATE Yeas 60 Nays 37 I, Bernard Dean, Chief Clerk of the House of Representatives of the LAURIE JINKINS State of Washington, do hereby Speaker of the House of certify that the attached is HOUSE Representatives BILL 1927 as passed by the House of Representatives and the Senate on the dates hereon set forth. Passed by the Senate March 1, 2024 Yeas 33 Nays 16 BERNARD DEAN Chief Clerk DENNY HECK President of the Senate Approved March 18, 2024 3:11 PM FILED March 19, 2024 Secretary of State JAY INSLEE State of Washington Governor of the State of Washington HOUSE BILL 1927 Passed Legislature - 2024 Regular Session State of Washington 68th Legislature 2024 Regular Session By Representatives Bronoske, Berry, Ortiz-Self, Reed, Ormsby, Kloba, Doglio, Lekanoff, Fosse, and Pollet Prefiled 12/11/23. Read first time 01/08/24. Referred to Committee on Labor & Workplace Standards. 1 AN ACT Relating to reducing the number of days that a worker's 2 temporary total disability must continue to receive industrial 3 insurance compensation for the day of an injury and the three-day 4 period following the injury; amending RCW 51.32.090 and 51.32.090; 5 providing an effective date; and providing an expiration date. 6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 7 Sec. 1. RCW 51.32.090 and 2011 1st sp.s. c 37 s 101 are each 8 amended to read as follows: 9 (1) When the total disability is only temporary, the schedule of 10 payments contained in RCW 51.32.060 (1) and (2) shall apply, so long 11 as the total disability continues. 12 (2) Any compensation payable under this section for children not 13 in the custody of the injured worker as of the date of injury shall 14 be payable only to such person as actually is providing the support 15 for such child or children pursuant to the order of a court of record 16 providing for support of such child or children. 17 (3)(a) As soon as recovery is so complete that the present 18 earning power of the worker, at any kind of work, is restored to that 19 existing at the time of the occurrence of the injury, the payments 20 shall cease. If and so long as the present earning power is only 21 partially restored, the payments shall: p. 1 HB 1927.SL 1 (i) For claims for injuries that occurred before May 7, 1993, 2 continue in the proportion which the new earning power shall bear to 3 the old; or 4 (ii) For claims for injuries occurring on or after May 7, 1993, 5 equal ((eighty)) 80 percent of the actual difference between the 6 worker's present wages and earning power at the time of injury, but: 7 (A) The total of these payments and the worker's present wages may 8 not exceed ((one hundred fifty)) 150 percent of the average monthly 9 wage in the state as computed under RCW 51.08.018; (B) the payments 10 may not exceed ((one hundred)) 100 percent of the entitlement as 11 computed under subsection (1) of this section; and (C) the payments 12 may not be less than the worker would have received if (a)(i) of this 13 subsection had been applicable to the worker's claim. 14 (b) No compensation shall be payable under this subsection (3) 15 unless the loss of earning power shall exceed five percent. 16 (c) The prior closure of the claim or the receipt of permanent 17 partial disability benefits shall not affect the rate at which loss 18 of earning power benefits are calculated upon reopening the claim. 19 (4)(a) The legislature finds that long-term disability and the 20 cost of injuries is significantly reduced when injured workers remain 21 at work following their injury. To encourage employers at the time of 22 injury to provide light duty or transitional work for their workers, 23 wage subsidies and other incentives are made available to employers 24 insured with the department. 25 (b) Whenever the employer of injury requests that a worker who is 26 entitled to temporary total disability under this chapter be 27 certified by a physician or licensed advanced registered nurse 28 practitioner as able to perform available work other than his or her 29 usual work, the employer shall furnish to the physician or licensed 30 advanced registered nurse practitioner, with a copy to the worker, a 31 statement describing the work available with the employer of injury 32 in terms that will enable the physician or licensed advanced 33 registered nurse practitioner to relate the physical activities of 34 the job to the worker's disability. The physician or licensed 35 advanced registered nurse practitioner shall then determine whether 36 the worker is physically able to perform the work described. The 37 worker's temporary total disability payments shall continue until the 38 worker is released by his or her physician or licensed advanced 39 registered nurse practitioner for the work, and begins the work with 40 the employer of injury. If the work thereafter comes to an end before p. 2 HB 1927.SL 1 the worker's recovery is sufficient in the judgment of his or her 2 physician or licensed advanced registered nurse practitioner to 3 permit him or her to return to his or her usual job, or to perform 4 other available work offered by the employer of injury, the worker's 5 temporary total disability payments shall be resumed. Should the 6 available work described, once undertaken by the worker, impede his 7 or her recovery to the extent that in the judgment of his or her 8 physician or licensed advanced registered nurse practitioner he or 9 she should not continue to work, the worker's temporary total 10 disability payments shall be resumed when the worker ceases such 11 work. 12 (c) To further encourage employers to maintain the employment of 13 their injured workers, an employer insured with the department and 14 that offers work to a worker pursuant to this subsection (4) shall be 15 eligible for reimbursement of the injured worker's wages for light 16 duty or transitional work equal to ((fifty)) 50 percent of the basic, 17 gross wages paid for that work, for a maximum of ((sixty-six)) 66 18 workdays within a consecutive ((twenty-four)) 24-month period. In no 19 event may the wage subsidies paid to an employer on a claim exceed 20 ((ten thousand dollars)) $10,000. Wage subsidies shall be calculated 21 using the worker's basic hourly wages or basic salary, and no subsidy 22 shall be paid for any other form of compensation or payment to the 23 worker such as tips, commissions, bonuses, board, housing, fuel, 24 health care, dental care, vision care, per diem, reimbursements for 25 work-related expenses, or any other payments. An employer may not, 26 under any circumstances, receive a wage subsidy for a day in which 27 the worker did not actually perform any work, regardless of whether 28 or not the employer paid the worker wages for that day. 29 (d) If an employer insured with the department offers a worker 30 work pursuant to this subsection (4) and the worker must be provided 31 with training or instruction to be qualified to perform the offered 32 work, the employer shall be eligible for a reimbursement from the 33 department for any tuition, books, fees, and materials required for 34 that training or instruction, up to a maximum of ((one thousand 35 dollars)) $1,000. Reimbursing an employer for the costs of such 36 training or instruction does not constitute a determination by the 37 department that the worker is eligible for vocational services 38 authorized by RCW 51.32.095 ((and 51.32.099)). 39 (e) If an employer insured with the department offers a worker 40 work pursuant to this subsection (4), and the employer provides the p. 3 HB 1927.SL 1 worker with clothing that is necessary to allow the worker to perform 2 the offered work, the employer shall be eligible for reimbursement 3 for such clothing from the department, up to a maximum of ((four 4 hundred dollars)) $400. However, an employer shall not receive 5 reimbursement for any clothing it provided to the worker that it 6 normally provides to its workers. The clothing purchased for the 7 worker shall become the worker's property once the work comes to an 8 end. 9 (f) If an employer insured with the department offers a worker 10 work pursuant to this subsection (4) and the worker must be provided 11 with tools or equipment to perform the offered work, the employer 12 shall be eligible for a reimbursement from the department for such 13 tools and equipment and related costs as determined by department 14 rule, up to a maximum of ((two thousand five hundred dollars)) 15 $2,500. An employer shall not be reimbursed for any tools or 16 equipment purchased prior to offering the work to the worker pursuant 17 to this subsection (4). An employer shall not be reimbursed for any 18 tools or equipment that it normally provides to its workers. The 19 tools and equipment shall be the property of the employer. 20 (g) An employer may offer work to a worker pursuant to this 21 subsection (4) more than once, but in no event may the employer 22 receive wage subsidies for more than ((sixty-six)) 66 days of work in 23 a consecutive ((twenty-four)) 24-month period under one claim. An 24 employer may continue to offer work pursuant to this subsection (4) 25 after the worker has performed ((sixty-six)) 66 days of work, but the 26 employer shall not be eligible to receive wage subsidies for such 27 work. 28 (h) An employer shall not receive any wage subsidies or 29 reimbursement of any expenses pursuant to this subsection (4) unless 30 the employer has completed and submitted the reimbursement request on 31 forms developed by the department, along with all related information 32 required by department rules. No wage subsidy or reimbursement shall 33 be paid to an employer who fails to submit a form for such payment 34 within one year of the date the work was performed. In no event shall 35 an employer receive wage subsidy payments or reimbursements of any 36 expenses pursuant to this subsection (4) unless the worker's 37 physician or licensed advanced registered nurse practitioner has 38 restricted him or her from performing his or her usual work and the 39 worker's physician or licensed advanced registered nurse practitioner 40 has released him or her to perform the work offered. p. 4 HB 1927.SL 1 (i) Payments made under (b) through (g) of this subsection are 2 subject to penalties under RCW 51.32.240(5) in cases where the funds 3 were obtained through willful misrepresentation. 4 (j) Once the worker returns to work under the terms of this 5 subsection (4), he or she shall not be assigned by the employer to 6 work other than the available work described without the worker's 7 written consent, or without prior review and approval by the worker's 8 physician or licensed advanced registered nurse practitioner. An 9 employer who directs a claimant to perform work other than that 10 approved by the attending physician and without the approval of the 11 worker's physician or licensed advanced registered nurse practitioner 12 shall not receive any wage subsidy or other reimbursements for such 13 work. 14 (k) If the worker returns to work under this subsection (4), any 15 employee health and welfare benefits that the worker was receiving at 16 the time of injury shall continue or be resumed at the level provided 17 at the time of injury. Such benefits shall not be continued or 18 resumed if to do so is inconsistent with the terms of the benefit 19 program, or with the terms of the collective bargaining agreement 20 currently in force. 21 (l) In the event of any dispute as to the validity of the work 22 offered or as to the worker's ability to perform the available work 23 offered by the employer, the department shall make the final 24 determination pursuant to an order that contains the notice required 25 by RCW 51.52.060 and that is subject to appeal subject to RCW 26 51.52.050. 27 (5) An employer's experience rating shall not be affected by the 28 employer's request for or receipt of wage subsidies. 29 (6) The department shall create a Washington stay-at-work account 30 which shall be funded by assessments of employers insured through the 31 state fund for the costs of the payments authorized by subsection (4) 32 of this section and for the cost of creating a reserve for 33 anticipated liabilities. Employers may collect up to one-half the 34 fund assessment from workers. 35 (7) No worker shall receive compensation for or during the day on 36 which injury was received or the three days following the same, 37 unless his or her disability shall continue for a period of 38 ((fourteen)) seven consecutive calendar days from date of injury: 39 PROVIDED, That attempts to return to work in the first ((fourteen)) 40 seven days following the injury shall not serve to break the p. 5 HB 1927.SL 1 continuity of the period of disability if the disability continues 2 ((fourteen)) seven days after the injury occurs. 3 (8) Should a worker suffer a temporary total disability and 4 should his or her employer at the time of the injury continue to pay 5 him or her the wages which he or she was earning at the time of such 6 injury, such injured worker shall not receive any payment provided in 7 subsection (1) of this section during the period his or her employer 8 shall so pay such wages: PROVIDED, That holiday pay, vacation pay, 9 sick leave, or other similar benefits shall not be deemed to be 10 payments by the employer for the purposes of this subsection. 11 (9) In no event shall the monthly payments provided in this 12 section: 13 (a) Exceed the applicable percentage of the average monthly wage 14 in the state as computed under the provisions of RCW 51.08.018 as 15 follows: 16 AFTER PERCENTAGE 17 June 30, 1993 105% 18 June 30, 1994 110% 19 June 30, 1995 115% 20 June 30, 1996 120% 21 (b) For dates of injury or disease manifestation after July 1, 22 2008, be less than ((fifteen)) 15 percent of the average monthly wage 23 in the state as computed under RCW 51.08.018 plus an additional ((ten 24 dollars)) $10 per month if the worker is married and an additional 25 ((ten dollars)) $10 per month for each child of the worker up to a 26 maximum of five children. However, if the monthly payment computed 27 under this subsection (9)(b) is greater than ((one hundred)) 100 28 percent of the wages of the worker as determined under RCW 51.08.178, 29 the monthly payment due to the worker shall be equal to the greater 30 of the monthly wages of the worker or the minimum benefit set forth 31 in this section on June 30, 2008. 32 (10) If the supervisor of industrial insurance determines that 33 the worker is voluntarily retired and is no longer attached to the 34 workforce, benefits shall not be paid under this section. 35 (11) The department shall adopt rules as necessary to implement 36 this section. p. 6 HB 1927.SL 1 Sec. 2. RCW 51.32.090 and 2023 c 171 s 7 are each amended to 2 read as follows: 3 (1) When the total disability is only temporary, the schedule of 4 payments contained in RCW 51.32.060 (1) and (2) shall apply, so long 5 as the total disability continues. 6 (2) Any compensation payable under this section for children not 7 in the custody of the injured worker as of the date of injury shall 8 be payable only to such person as actually is providing the support 9 for such child or children pursuant to the order of a court of record 10 providing for support of such child or children. 11 (3)(a) As soon as recovery is so complete that the present 12 earning power of the worker, at any kind of work, is restored to that 13 existing at the time of the occurrence of the injury, the payments 14 shall cease. If and so long as the present earning power is only 15 partially restored, the payments shall: 16 (i) For claims for injuries that occurred before May 7, 1993, 17 continue in the proportion which the new earning power shall bear to 18 the old; or 19 (ii) For claims for injuries occurring on or after May 7, 1993, 20 equal ((eighty)) 80 percent of the actual difference between the 21 worker's present wages and earning power at the time of injury, but: