Chamber fights Work Comp

Montana Chamber and coalition help turn back Workers Compensation decision

In an order issued Monday afternoon (12/12/05), Workers’ Compensation Judge James Shea issued an order denying the motion for partial summary judgment in Satterlee vs. Lumberman’s. The Judge concludes that the legislature’s decision to terminate permanent partial disability benefits for claimants who are defined as “retired” is rationally related to the legitimate governmental interests of providing PTD benefits to claimants for the time period of their “work life,” maintain affordable insurance for employers, and continuing to offer comprehensive workers’ compensation benefits to employees at reasonable rates.

The Montana Chamber of Commerce joined with others to file an amicus brief as this case had the potential to increase costs to the workers’ compensation system by more than $300 million.

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Calling it a critical case which could had significant financial impact on all employers, employees and taxpayers in Montana, the Montana Chamber of Commerce, National Federation of Independent Business and Montana Contractors Association filed a friend-of-the-court brief with the Montana Workers’ Compensation Court.

The Satterlee vs. Lumberman’s Mutual Casualty Company case challenged the constitutionality of state statute passed by the Montana Legislature in 1981. That statute allows a reduction in workers’ compensation benefits when a claimant becomes eligible for Social Security retirement benefits or an alternative to that plan. If the court ruled in favor of the claimants, the cost of compensating everyone collecting permanent disability now and in the future would increase.

The total amount of new liability that this case would haved imposed on private carriers and self-insured companies if the claimants prevailed is unknown, but it is undeniable that both would have increased, with unanticipated, liability. Webb Brown, President of the Montana Chamber of Commerce, said, “What kind of message about the business climate would an adverse ruling send to businesses in Montana and those we would like to start doing business in Montana?”

“Montana legislators put that statute in place to prevent double dipping. Workers’ compensation was designed to provide for lost wages. As a person receives social security retirement benefits, it is appropriate that their workers compensation benefits reflect that change,” Brown said. “Not only was the legislature right in taking those types of retirement benefits into account, it has the authority and responsibility to do just that.”