Bill Text: FL S0444 | 2014 | Regular Session | Comm Sub
Bill Title: Workers' Compensation
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/HB 271 (Ch. 2014-109) [S0444 Detail]
Download: Florida-2014-S0444-Comm_Sub.html
Florida Senate - 2014 CS for SB 444
By the Committee on Appropriations; and Senator Galvano
576-04677-14 2014444c1
1 A bill to be entitled
2 An act relating to workers’ compensation; amending s.
3 440.107, F.S.; revising powers of the Department of
4 Financial Services relating to compliance with and
5 enforcement of workers’ compensation coverage
6 requirements; providing for stop-work order
7 information to be available on the Division of
8 Workers’ Compensation website; revising requirements
9 for the release of stop-work orders; revising
10 penalties; amending ss. 440.15 and 440.16, F.S.;
11 revising rate formulas related to the determination of
12 compensation for disability and death; amending s.
13 440.49, F.S.; revising provisions relating to the
14 assessment rate of the Special Disability Trust Fund;
15 reducing the assessment rate limitation; providing an
16 effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Paragraphs (a), (d), and (e) of subsection (7)
21 of section 440.107, Florida Statutes, are amended to read:
22 440.107 Department powers to enforce employer compliance
23 with coverage requirements.—
24 (7)(a) Whenever the department determines that an employer
25 who is required to secure the payment to his or her employees of
26 the compensation provided for by this chapter has failed to
27 secure the payment of workers’ compensation required by this
28 chapter or to produce the required business records under
29 subsection (5) within 10 5 business days after receipt of the
30 written request of the department, such failure shall be deemed
31 an immediate serious danger to public health, safety, or welfare
32 sufficient to justify service by the department of a stop-work
33 order on the employer, requiring the cessation of all business
34 operations. If the department makes such a determination, the
35 department shall issue a stop-work order within 72 hours. The
36 order shall take effect when served upon the employer or, for a
37 particular employer worksite, when served at that worksite. In
38 addition to serving a stop-work order at a particular worksite
39 which shall be effective immediately, the department shall
40 immediately proceed with service upon the employer which shall
41 be effective upon all employer worksites in the state for which
42 the employer is not in compliance. A stop-work order may be
43 served with regard to an employer’s worksite by posting a copy
44 of the stop-work order in a conspicuous location at the
45 worksite. Information related to an employer’s stop-work order
46 shall be made available on the division’s website and updated
47 daily. The information shall remain on the website for at least
48 5 years. The order shall remain in effect until the department
49 issues an order releasing the stop-work order upon a finding
50 that the employer has come into compliance with the coverage
51 requirements of this chapter and has paid any penalty assessed
52 under this section. The department may issue an order of
53 conditional release from a stop-work order to an employer upon a
54 finding that the employer has complied with the coverage
55 requirements of this chapter, paid a penalty of $1,000 as a down
56 payment, and has agreed to remit periodic payments of the
57 remaining penalty amount pursuant to a payment agreement
58 schedule with the department or pay the remaining penalty amount
59 in full. If an order of conditional release is issued, failure
60 by the employer to pay the penalty in full or enter into a
61 payment agreement with the department within 28 days after
62 service of the stop-work order upon the employer, or to meet any
63 term or condition of such penalty payment agreement, shall
64 result in the immediate reinstatement of the stop-work order and
65 the entire unpaid balance of the penalty shall become
66 immediately due. The department may require an employer who is
67 found to have failed to comply with the coverage requirements of
68 s. 440.38 to file with the department, as a condition of release
69 from a stop-work order, periodic reports for a probationary
70 period that shall not exceed 2 years that demonstrate the
71 employer’s continued compliance with this chapter. The
72 department shall by rule specify the reports required and the
73 time for filing under this subsection.
74 (d)1. In addition to any penalty, stop-work order, or
75 injunction, the department shall assess against any employer who
76 has failed to secure the payment of compensation as required by
77 this chapter a penalty equal to 2 1.5 times the amount the
78 employer would have paid in premium when applying approved
79 manual rates to the employer’s payroll during periods for which
80 it failed to secure the payment of workers’ compensation
81 required by this chapter within the preceding 2-year 3-year
82 period or $1,000, whichever is greater. For employers who have
83 not been previously issued a stop-work order, the department
84 shall allow the employer to receive a credit for the initial
85 payment of the estimated annual workers’ compensation policy
86 premium, as determined by the carrier, to be applied to the
87 penalty. Before the department applies the credit to the
88 penalty, the employer must provide the department with
89 documentation reflecting that the employer has secured the
90 payment of compensation pursuant to s. 440.38 and proof of
91 payment to the carrier. In order for the department to apply a
92 credit for an employer that has secured workers’ compensation
93 for leased employees by entering into an employee leasing
94 contract with a licensed employee leasing company, the employer
95 must provide the department with a written confirmation by a
96 representative from the employee leasing company of the dollar
97 or percentage amount attributable to the initial estimated
98 workers’ compensation expense for leased employees and proof of
99 payment to the employee leasing company. The $1,000 penalty
100 shall be assessed against the employer even if the calculated
101 penalty after the credit has been applied is less than $1,000.
102 2. Any subsequent violation within 5 years after the most
103 recent violation shall, in addition to the penalties set forth
104 in this subsection, be deemed a knowing act within the meaning
105 of s. 440.105.
106 (e) When an employer fails to provide business records
107 sufficient to enable the department to determine the employer’s
108 payroll for the period requested for the calculation of the
109 penalty provided in paragraph (d), for penalty calculation
110 purposes, the imputed weekly payroll for each employee,
111 corporate officer, sole proprietor, or partner shall be the
112 statewide average weekly wage as defined in s. 440.12(2)
113 multiplied by 2 1.5.
114 Section 2. Paragraph (a) of subsection (1), paragraph (a)
115 of subsection (2), and paragraph (a) of subsection (4) of
116 section 440.15, Florida Statutes, are amended to read:
117 440.15 Compensation for disability.—Compensation for
118 disability shall be paid to the employee, subject to the limits
119 provided in s. 440.12(2), as follows:
120 (1) PERMANENT TOTAL DISABILITY.—
121 (a) In case of total disability adjudged to be permanent,
122 66 2/3 or 66.67 percent of the average weekly wages shall be
123 paid to the employee during the continuance of such total
124 disability. No Compensation is not shall be payable under this
125 section if the employee is engaged in, or is physically capable
126 of engaging in, at least sedentary employment.
127 (2) TEMPORARY TOTAL DISABILITY.—
128 (a) Subject to subsection (7), in case of disability total
129 in character but temporary in quality, 66 2/3 or 66.67 percent
130 of the average weekly wages shall be paid to the employee during
131 the continuance thereof, not to exceed 104 weeks except as
132 provided in this subsection, s. 440.12(1), and s. 440.14(3).
133 Once the employee reaches the maximum number of weeks allowed,
134 or the employee reaches the date of maximum medical improvement,
135 whichever occurs earlier, temporary disability benefits shall
136 cease and the injured worker’s permanent impairment shall be
137 determined.
138 (4) TEMPORARY PARTIAL DISABILITY.—
139 (a) Subject to subsection (7), in case of temporary partial
140 disability, compensation shall be equal to 80 percent of the
141 difference between 80 percent of the employee’s average weekly
142 wage and the salary, wages, and other remuneration the employee
143 is able to earn postinjury, as compared weekly; however, weekly
144 temporary partial disability benefits may not exceed an amount
145 equal to 66 2/3 or 66.67 percent of the employee’s average
146 weekly wage at the time of accident. In order to simplify the
147 comparison of the preinjury average weekly wage with the salary,
148 wages, and other remuneration the employee is able to earn
149 postinjury, the department may by rule provide for payment of
150 the initial installment of temporary partial disability benefits
151 to be paid as a partial week so that payment for remaining weeks
152 of temporary partial disability can coincide as closely as
153 possible with the postinjury employer’s work week. The amount
154 determined to be the salary, wages, and other remuneration the
155 employee is able to earn shall in no case be less than the sum
156 actually being earned by the employee, including earnings from
157 sheltered employment. Benefits are shall be payable under this
158 subsection only if overall maximum medical improvement has not
159 been reached and the medical conditions resulting from the
160 accident create restrictions on the injured employee’s ability
161 to return to work.
162 Section 3. Paragraph (b) of subsection (1) and subsection
163 (3) of section 440.16, Florida Statutes, are amended to read:
164 440.16 Compensation for death.—
165 (1) If death results from the accident within 1 year
166 thereafter or follows continuous disability and results from the
167 accident within 5 years thereafter, the employer shall pay:
168 (b) Compensation, in addition to the above, in the
169 following percentages of the average weekly wages to the
170 following persons entitled thereto on account of dependency upon
171 the deceased, and in the following order of preference, subject
172 to the limitation provided in subparagraph 2., but such
173 compensation shall be subject to the limits provided in s.
174 440.12(2), shall not exceed $150,000, and may be less than, but
175 shall not exceed, for all dependents or persons entitled to
176 compensation, 66 2/3 or 66.67 percent of the average wage:
177 1. To the spouse, if there is no child, 50 percent of the
178 average weekly wage, such compensation to cease upon the
179 spouse’s death.
180 2. To the spouse, if there is a child or children, the
181 compensation payable under subparagraph 1. and, in addition, 16
182 2/3 or 16.67 percent on account of the child or children.
183 However, when the deceased is survived by a spouse and also a
184 child or children, whether such child or children are the
185 product of the union existing at the time of death or of a
186 former marriage or marriages, the judge of compensation claims
187 may provide for the payment of compensation in such manner as
188 may appear to the judge of compensation claims just and proper
189 and for the best interests of the respective parties and, in so
190 doing, may provide for the entire compensation to be paid
191 exclusively to the child or children; and, in the case of death
192 of such spouse, 33 1/3 or 33.33 percent for each child. However,
193 upon the surviving spouse’s remarriage, the spouse shall be
194 entitled to a lump-sum payment equal to 26 weeks of compensation
195 at the rate of 50 percent of the average weekly wage as provided
196 in s. 440.12(2), unless the $150,000 limit provided in this
197 paragraph is exceeded, in which case the surviving spouse shall
198 receive a lump-sum payment equal to the remaining available
199 benefits in lieu of any further indemnity benefits. In no case
200 shall A surviving spouse’s acceptance of a lump-sum payment does
201 not affect payment of death benefits to other dependents.
202 3. To the child or children, if there is no spouse, 33 1/3
203 or 33.33 percent for each child.
204 4. To the parents, 25 percent to each, such compensation to
205 be paid during the continuance of dependency.
206 5. To the brothers, sisters, and grandchildren, 15 percent
207 for each brother, sister, or grandchild.
208 (3) If Where, because of the limitation in paragraph
209 (1)(b), a person or class of persons cannot receive the
210 percentage of compensation specified as payable to or on account
211 of such person or class, there shall be available to such person
212 or class that proportion of such percentage as, when added to
213 the total percentage payable to all persons having priority of
214 preference, will not exceed a total of said 66 2/3 or 66.67
215 percent, which proportion shall be paid:
216 (a) To such person; or
217 (b) To such class, share and share alike, unless the judge
218 of compensation claims determines otherwise in accordance with
219 the provisions of subsection (4).
220 Section 4. Paragraphs (b) and (c) of subsection (9) of
221 section 440.49, Florida Statutes, are amended to read:
222 440.49 Limitation of liability for subsequent injury
223 through Special Disability Trust Fund.—
224 (9) SPECIAL DISABILITY TRUST FUND.—
225 (b)1. The Special Disability Trust Fund shall be maintained
226 by annual assessments upon the insurance companies writing
227 compensation insurance in the state, the commercial self
228 insurers under ss. 624.462 and 624.4621, the assessable mutuals
229 as defined in s. 628.6011, and the self-insurers under this
230 chapter, which assessments shall become due and be paid
231 quarterly at the same time and in addition to the assessments
232 provided in s. 440.51. Payments of assessments shall be made by
233 each carrier, self-insurer, and self-insured employer to the
234 department for the Special Disability Trust Fund pursuant to
235 department rule establishing such method of payment.
236 2. The department shall estimate annually in advance the
237 amount necessary for the administration of this subsection and
238 the maintenance of this fund pursuant to this paragraph and
239 shall make such assessment in the manner hereinafter provided.
240 By July 1 of each year, the department shall calculate the
241 assessment rate, which shall be based upon the net premiums
242 written by carriers and self-insurers, the amount of premiums
243 calculated by the department for self-insured employers, the sum
244 of the anticipated disbursements and expenses of the Special
245 Disability Trust Fund for the next calendar year, and the
246 expected fund balance for the next calendar year. Such
247 assessment rate shall take effect January 1 of the next calendar
248 year. Such amount shall be prorated among insurance companies
249 writing workers’ compensation insurance in the state, the self
250 insurers, and self-insured employers.
251 2. The annual assessment shall be calculated to produce
252 during the next calendar year an amount which, when combined
253 with that part of the balance anticipated to be in the fund on
254 December 31 of the current calendar year which is in excess of
255 $100,000, is equal to the average of:
256 a. The sum of disbursements from the fund during the
257 immediate past 3 calendar years, and
258 b. Two times the disbursements of the most recent calendar
259 year.
260 c. Such assessment rate shall first apply on a calendar
261 year basis for the period beginning January 1, 2012, and shall
262 be included in workers’ compensation rate filings approved by
263 the office which become effective on or after January 1, 2012.
264 The assessment rate effective January 1, 2011, shall also apply
265 to the interim period from July 1, 2011, through December 31,
266 2011, and shall be included in workers’ compensation rate
267 filings, whether regular or amended, approved by the office
268 which become effective on or after July 1, 2011. Thereafter, the
269 annual assessment rate shall take effect January 1 of the next
270 calendar year and shall be included in workers’ compensation
271 rate filings approved by the office which become effective on or
272 after January 1 of the next calendar year. Assessments shall
273 become due and be paid quarterly.
274
275 Such amount shall be prorated among the insurance companies
276 writing compensation insurance in the state and the self
277 insurers.
278 3. A reimbursement request that has been approved but
279 remains unpaid as of June 30, 2014, shall be paid by October 31,
280 2014 The net premiums written by the companies for workers’
281 compensation in this state and the net premium written
282 applicable to the self-insurers in this state are the basis for
283 computing the amount to be assessed as a percentage of net
284 premiums. Such payments shall be made by each carrier and self
285 insurer to the department for the Special Disability Trust Fund
286 in accordance with such regulations as the department
287 prescribes.
288 4. The Chief Financial Officer is authorized to receive and
289 credit to such Special Disability Trust Fund any sum or sums
290 that may at any time be contributed to the state by the United
291 States under any Act of Congress, or otherwise, to which the
292 state may be or become entitled by reason of any payments made
293 out of such fund.
294 (c) Notwithstanding the Special Disability Trust Fund
295 assessment rate calculated pursuant to this section, the rate
296 assessed may shall not exceed 2.5 4.52 percent.
297 Section 5. This act shall take effect July 1, 2014.
