In November of 2017, the Alabama State Bar appointed a task force to review the Alabama Workers’ Compensation Act and make recommendations for improvement.  On October 17, 2018,the task force unanimously approved a proposed bill that contained substantial changes to the Act.  Recently, the Alabama Council of Association Workers’ Compensation Self Insurance Funds (Council)
voted to oppose the proposed bill.   The Council, which represents self-insurance funds providing workers’ compensation coverage for 16,200
Alabama businesses employing 375,000 people, primarily objects to the proposal because it would raise legal fees for plaintiff attorneys by one-third
and do nothing in the short run to reign in hospital, doctor, and other medical costs. It also more than doubles the cap on certain disability payments
to injured workers and adds an inflationary adjustment.

 

“While the Council is always willing to work with any group to make meaningful and fair improvements to Alabama workers’ compensation law, any such negotiation
must include all parties”, the statement said. The Council was not included in the ABA appointed committee that drafted and approved the proposed bill.

 

My Two Cents

 

Although the Alabama Legislature could consider changes to the law when its Regular Session begins in March, it is unlikely that anything will get passed
committee in light of the recent Council opposition and the fact that the neither Alabama Bar Association or the Workers’ Compensation Division of
the Alabama Department of Labor are in a position to recommend the proposed bill or otherwise voice support. According to the ADOL, it is a state regulatory
agency tasked with the responsibility of following and enforcing the laws put in place by the legislature.  As the regulator, it typically does
not comment on proposed legislation.  However, it acknowledges that the current workers’ compensation laws are not ideal and that amendments are
needed that benefit both injured workers and employers.  It will follow and enforce any changes that are made, if any. 

 

If changes of this magnitude are to have any chance of success in committee, there must be a consensus of all interested parties. That is not to say that
it cannot get done.  It is just a little optimistic to think it can get done in the next few months.