Bill Text: NJ S2201 | 2012-2013 | Regular Session | Introduced
Bill Title: Authorizes establishment through collective bargaining of alternative workers' compensation program and group self-insurance plans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-10-01 - Introduced in the Senate, Referred to Senate Labor Committee [S2201 Detail]
Download: New_Jersey-2012-S2201-Introduced.html
Sponsored by:
Senator FRED H. MADDEN, JR.
District 4 (Camden and Gloucester)
SYNOPSIS
Authorizes establishment through collective bargaining of alternative workers' compensation program and group self-insurance plans.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing the establishment through collective bargaining of alternative workers' compensation programs and group self-insurance plans, amending R.S.34:15-77 and supplementing chapter 15 of Title 34 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Upon approval by the Commissioner of Labor and Workforce Development pursuant to section 2 of this act, the commissioner, each judge of compensation, and the courts shall recognize as valid and binding any provisions of a collective bargaining agreement between an employer or a group of employers, including a group of employers that have established an approved plan of group self-insurance pursuant to section 7 of this act, and one or more unions that are the recognized or certified exclusive bargaining representatives of the employees of the employers, to establish obligations and procedures relating to workers' compensation to provide for any or all of the following:
a. An alternative dispute resolution system that supplements, modifies, or replaces the procedural or dispute provisions of chapter 15 of Title 34 of the Revised Statutes, which alternative dispute resolution system may include mediation, arbitration, or other dispute resolution proceedings, the results of which may be final and binding upon the parties, provided that:
(1) Any final decision made under the alternative dispute resolution system regarding the awarding of compensation may be appealed to the Appellate Division of the Superior Court in the same manner as a judgment of a judge of compensation;
(2) No administrator, ombudsman, mediator, arbitrator or other individual involved in the operation of the alternative dispute resolution system shall be selected or employed without the mutual agreement of the employers and the unions; and
(3) The operation of the system shall be overseen by a body with equal employer and union representation;
b. The use of a list, agreed upon by the employers and the unions, of providers of medical treatment that are the exclusive source of all medical and related treatment provided pursuant to chapter 15 of Title 34 of the Revised Statutes, notwithstanding any other provisions of that chapter regarding the selection of providers of medical treatment;
c. The use of a list,
agreed upon by the employers and the unions, of qualified medical evaluators
that are the exclusive source of medical evaluations provided pursuant to
chapter 15 of Title 34
of the Revised Statutes, notwithstanding any other provisions of that chapter
regarding the selection of providers of medical evaluation;
d. The creation of a light-duty or transitional return-to-work program;
e. The use of a list, agreed upon by the employers and the unions, of vocational rehabilitation providers and retraining programs that are the exclusive source of vocational rehabilitation and retraining services for injuries compensable under chapter 15 of Title 34 of the Revised Statutes;
f. The establishment of joint labor-management occupational safety and health committees;
g. With respect to employees who are provided group health benefits and temporary disability benefits for non-occupational injury and illness by employers, the coordination or integration of the delivery, funding, or both funding and delivery, of compensation provided under chapter 15 of Title 34 of the Revised Statutes with group health benefits and with non-occupational temporary disability benefits, including benefits provided pursuant to the "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et al.); and
h. Benefits supplemental to those provided under chapter 15 of Title 34 of the Revised Statutes or under the "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et al.).
2. (New section) a. Any one or more unions that are recognized or certified as exclusive bargaining representatives may file with the Commissioner of Labor and Workforce Development a petition seeking authorization to negotiate an agreement with one or more employers pursuant to subsection 1 of this act. The petition shall include the proof required by the commissioner that the unions are the exclusive bargaining representatives for the employees subject to the agreement, specify the bargaining unit or units to be included and the names of the unions and employers, and be accompanied by a copy of any current applicable collective bargaining agreement. Upon verification that the petitioners are the exclusive bargaining representatives and that the petition satisfies all requirements of this subsection and any applicable regulations adopted by the commissioner, the commissioner shall notify the employers and unions that they are authorized to enter into the negotiations. Upon the completion of the negotiations, a copy of the agreement to establish the alternative workers' compensation program, identifying the employer or the group of employers and the local unions or district councils, shall be filed with the commissioner. Within 21 days of receipt of an agreement, the commissioner shall review the agreement for compliance with the provisions of chapter 15 of Title 34 of the Revised Statutes and section 3 of this act, and either approve the agreement or deny approval and notify the parties of any additional information required or any modification of the agreement determined by the commissioner to be necessary to bring the agreement into compliance with the provisions of this act and obtain approval.
b. If the employer is insured under chapter 15 of Title 34 of the Revised Statutes it shall obtain consent from its insurance carrier to enter into an agreement as provided in section 1 of this act, unless the employer obtains insurance from a different carrier or participates in a group plan for self-insurance pursuant to section 7 of this act.
3. (New section) Nothing in this act shall be construed as permitting any provision of an agreement or group plan for self-insurance that:
a. Diminishes an employee's entitlement to compensation fully paid by the employer for total or partial disability, temporary disability, rehabilitation, medical treatment or compensation to dependents or survivors as provided in chapter 15 of Title 34 of the Revised Statutes;
b. Diminishes the entitlement of any employee to temporary disability benefits pursuant to the "Temporary Disability Benefits Law," P.L.1948, c.110 (C.43:21-25 et al.) or increases to any degree costs to the employee of temporary disability benefits; or
c. Denies any employee the right to representation by an attorney at any stage of the resolution of any aspect of a workers' compensation claim, and all rights to have attorney, witness and other fees paid as provided by chapter 15 of Title 34 of the Revised Statutes.
Any portion of any agreement or group plan for self-insurance that violates any provision of this section is null and void. Each employee shall be notified of the protections of rights provided by this section upon first becoming subject to the agreement or plan and upon any injury compensable under the agreement or plan.
4. (New section) Commencing July 1, 2010, and annually thereafter, the Commissioner of Labor and Workforce Development shall provide to the Governor and the Legislature, and make public, an annual report on agreements entered into pursuant to section 1 of this act, which shall include aggregate data on the following:
a. The number of employers and employees, work hours and payroll covered by the agreements;
b. The number of claims processed under alternative dispute resolution systems established pursuant to section 1 of this act, including the number of claims submitted to mediation, arbitration, or other dispute resolution procedures under the systems, and the number that were appealed to judges of compensation or courts;
c. The projected incurred costs and actual costs of claims under the agreements;
d. Any occupational safety and health activities under the agreements and their impact;
e. The numbers of employers and employees participating in vocational rehabilitation and light-duty programs under the agreements;
f. The numbers of employers and employees participating in programs to coordinate or integrate benefits for occupational and non-occupational injury and illness; and
g. The numbers of employers and workers participating in programs under the agreements of joint labor-management selection of medical providers.
In addition, the annual report may include comparisons between the aggregate data for participating employers and the aggregate data for other employers with respect to claims, disputes, costs and other aspects of workers' compensation.
The data obtained by the commissioner for the preparation of the annual report shall be confidential and not subject to public disclosure under any law of this State, except for information disclosed in the report in a manner which is not identifiable with any individual employee or employer, and except that the commissioner shall make public a current list of employers and unions entering into agreements approved pursuant to section 2 of this act.
5. (New section) The Commissioner of Labor and Workforce Development shall adopt all rules and regulations deemed necessary or useful by the commissioner to effectuate the provisions of this act regarding the authorization, approval and oversight of agreements negotiated pursuant to section 1 of this act, including any requirements deemed appropriate by the commissioner regarding the obtaining and retaining of records or information on programs under the agreements and regarding procedures for alternative dispute resolution systems provided for by the agreements and procedures for appeals of decisions of those systems.
6. R.S.34:15-77 is amended to read as follows:
34:15-77. Any employer desiring to carry his own liability insurance may make application to the Commissioner of Banking and Insurance showing his financial ability to pay compensation. The commissioner, if satisfied of the applicant's financial ability and the permanence of his business, shall by written order exempt the applicant from insuring the whole or any part of his compensation liability.
The commissioner may from time to time require any employer exempted as herein provided to furnish further statements of financial ability and if at any time it appears to him that any such employer is no longer financially able to carry the risk of compensation liability the commissioner shall revoke his order granting exemption, whereupon the employer shall immediately insure his liability under this chapter in a mutual association or other insurance company authorized to engage in workers' compensation in this State.
Whenever the commissioner is not satisfied with the financial ability and the permanence of the business of an employer exempted as herein provided, or of a new applicant for exemption, he may consider, and shall have the authority to accept, as evidence of such ability to pay compensation, (a) a guaranty by the parent corporation of such applicant that said parent corporation will discharge the applicant's liability under this chapter; (b) a separate account or reserve fund, or any deposit thereupon, maintained by an applicant to discharge his liability under this chapter; (c) a surety bond executed by an association or corporation licensed to do business in this State, provided the surety on any such surety bond undertakes to discharge the applicant's liability under this chapter; or (d) a contract of an employer with an insurance carrier covering liability for a portion of the compensation required under article 2, chapter 15, Title 34 of the Revised Statutes.
Any employer or group of employers exempted as herein provided may for its own protection insure its liability for the payment of any stated loss in excess of $100,000.00 by reason of any single accident or by reason of occupational diseases scheduled in this chapter; provided, that any such contract of insurance shall operate only between the employer or group of employers and its insurance carrier and shall not be subject to any of the provisions of this chapter.
An application pertaining only to a change of name of a presently exempt employer, without any change in the financial structure of said employer, shall not be considered as a new application for exemption under this act.
Pursuant to rules and regulations established by the Commissioner of Banking and Insurance, 10 or more employers licensed by the State as hospitals under the "Health Care Facilities Planning Act," P.L.1971, c.136 (C.26:2H-1 et seq.) may make application to the commissioner for permission to enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as self-insurers. An employer member of the approved group shall be classified as a self-insurer.
Pursuant to the provisions of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), a group of employers who are participating in, or establishing, a Taft-Hartley trust fund, as defined in that section, may apply to the Commissioner of Banking and Insurance for approval to enter into agreements to pool their liabilities under chapter 15 of Title 34 of the Revised Statutes for the purpose of qualifying as members of a group plan for self-insurance. An employer member of an approved group plan shall be classified as a self-insurer and shall be subject to all requirements, obligations and liabilities of that chapter regarding an employer providing compensation by means of self-insurance, including all obligations to make payments to the Second Injury Fund, the New Jersey Self-Insurers Guaranty Association and the uninsured employer's fund, and shall also be subject to the provisions of section 7 of P.L. , c. (C. )(now pending before the Legislature as this bill).
(cf: P.L.1983, c.376, s.1)
7. (New section) a. If a group of employers who are participating in, or establishing, a Taft-Hartley trust fund applies to the Commissioner of Banking and Insurance for approval to establish a group plan for self-insurance to provide all compensation required by chapter 15 of Title 34 of the Revised Statutes for the employees of the employers who are members of the group, the group shall present satisfactory proof to the Commissioner of Banking and Insurance of its financial ability to pay that compensation, including a statement of the group's revenues, their source and assurance for their continuance. Under the group plan, the group shall assume the liability of all the employers within the group under the terms of a trust agreement approved by the Commissioner of Banking and Insurance, and pay all compensation for which the employers are liable under chapter 15 of Title 34 of the Revised Statutes. No employer participating in the group plan shall be relieved from the liability for the compensation except by the payment by the group plan or by the employer. The insolvency or bankruptcy of a participating employer shall not relieve the group self-insurer from the payment of compensation for injuries or death sustained by an employee during the time the employer was a participant in the group plan.
b. A group plan for self-insurance for the payment of workers' compensation by a Taft-Hartley trust fund shall be approved by the Commissioner of Banking and Insurance if the group plan is established by a collective bargaining agreement negotiated between the group of employers and one or more unions that are certified by the Commissioner of Labor and Workforce Development as the recognized exclusive bargaining representatives of the employees of the employers, and the Commissioner of Banking and Insurance finds that the group plan and the participating employers comply with all applicable requirements of this section and with all requirements specified in regulations adopted by the Commissioner of Banking and Insurance regarding:
(1) The financial condition of the plan and the provisions of the plan to ensure the payment of all required compensation;
(2) The reporting and disclosure of information and documents regarding the plan and its finances, operations, officers, personnel and member employers;
(3) The procedures for the addition or termination of employers participating in the plan; and
(4) The deposit with the Commissioner of Banking and Insurance, at the inception of the plan, of any types and amounts of securities or surety bonds as the Commissioner of Banking and Insurance deems necessary to ensure the payment of all required compensation.
c. The Commissioner of Banking and Insurance may conduct an annual examination of each group self-insurer as he deems necessary and may deny the application of any group of self-insurers to operate a group plan, or revoke approval of a group plan, for good cause shown, including:
(1) Failure to comply with the requirements set out in regulations adopted by the Commissioner of Banking and Insurance or with any provision of this section or R.S.34:15-77;
(2) Failure to comply with a lawful order of the Commissioner of Banking and Insurance; or
(3) Deterioration of financial condition to such an extent that such deterioration would have an adverse effect on the ability of the self-insurance group to pay expected losses.
The Commissioner of Banking and Insurance shall provide to the group self-insurer or applicant for group self-insurance a written explanation of the reasons for any denial or revocation and an opportunity to appeal the denial or revocation.
d. For the purposes of this section and R.S.34:15-77, "Taft-Hartley trust fund" means a labor-management, jointly-administered, worker benefit trust fund formed pursuant to an agreement collectively bargained under the provisions of the "Labor Management Relations Act, 1947," 29 U.S.C. s.141 et seq. between one or more employers and one or more unions that are the recognized or certified exclusive bargaining representatives of the employees of those employers.
8. (New section) The Commissioner of Banking and Insurance shall, in consultation with the Commissioner of Labor and Workforce Development, adopt all rules and regulations necessary or useful to effectuate the provisions of this section regarding the recognition, approval, oversight and revocation of approval of a group plan, including any fee schedules that the Commissioner of Banking and Insurance deems appropriate.
9. This act shall take effect on the 120th day following enactment.
STATEMENT
This bill authorizes the establishment through collective bargaining of alternative workers' compensation programs to provide for the delivery of fair and timely workers' compensation benefits for work-related injuries as required by the New Jersey workers' compensation law (N.J.S.A.34:15-1 et seq.), including any or all of the following:
1. Alternative dispute resolution systems for workers' compensation claims, including mediation, arbitration or other dispute resolution proceedings, with their administrators, ombudsmen, mediators, arbitrators or other personnel selected, employed and overseen jointly by the employers and the unions;
2. The use of lists, agreed upon by the employers and the unions, of providers of medical treatment, medical evaluation and rehabilitation as the exclusive providers of those services;
3. The creation of light-duty and transitional return-to-work programs;
4. Joint labor-management occupational safety and health committees;
5. The coordination or integration of the delivery of workers' compensation with group health benefits and non-occupational temporary disability benefits; and
6. Benefits supplementary to benefits provided under workers' compensation or temporary disability insurance.
The Commissioner of Labor and Workforce Development is required to monitor the agreements, issue annual reports regarding the agreements and set standards regarding procedures for alternative dispute resolution and other programs provided under the agreements.
The bill bills also permits groups of employers participating in Taft-Hartley trust funds to apply to the Commissioner of Banking and Insurance for approval to enter into agreements to pool their workers' compensation liabilities for the purpose of qualifying as members of a group plan for self-insurance. The bill requires the Commissioner of Banking and Insurance to recognize as valid a group plan for the payment of workers' compensation by a Taft-Hartley trust fund if the plan is negotiated between the employer group and one or more unions, and it complies with the Commissioner of Banking and Insurance's requirements to disclose information and take measures needed to ensure the payment of compensation.
The bill prohibits such agreements or group plans to diminish any employee entitlement to workers' compensation or temporary disability benefits or deny or diminish any rights regarding the obtaining of compensation or benefits, including rights provided by law for representation by an attorney and payment of attorney, witness or other fees.
