Wash. Governor Proposes Workers’ Comp Settlement Option

By | May 13, 2011

In hopes of settling a stalemate in Washington’s special legislative session, Gov. Chris Gregoire has submitted a proposal that includes a claims settlement option for workers’ compensation claims.

As part of the proposal, injured workers who are 55 and above and have another source of regular income would be able to choose to receive all of their workers’ compensation benefits, participate in vocational training, if eligible, or to resolve their claim by choosing to take a lump sum or structured settlement. A settlement negotiation would only be possible if 180 days had passed since the claim was received and the order allowing the claim is final and binding.

According to the governor, “The legislature recognizes that controlling pension costs is key to a financially sound workers’ compensation system for employers and workers. To these ends, the legislature recognizes that certain workers would benefit from an option that allows them to initiate claim resolution agreements in order to pursue work or retirement goals independent of the system, provided that sufficient protections for injured workers are included.”

The governor’s office estimates the claims settlement option would save the state $307 million in fiscal year 2012, and $498 million in fiscal years 2012 to 2015.

The failure to reach an agreement on workers’ compensation reforms has been an obstacle in the Legislature, preventing it from concluding it special session.

Topics Workers' Compensation Washington

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