Senate committee rejects bill to raise workers’ compensation attorney fee caps

Senate Bill 287, a proposal to raise caps on attorney fees in certain workers’ compensation appeals, failed in the Public Health, Welfare and Labor Committee after public testimony and a roll-call vote.

The bill’s sponsor, Senator Payton, said the measure would restore a $5,000 cap for attorneys representing injured workers and raise appellate caps previously set at lower amounts, arguing the change would help workers who have had long delays getting medical care. He described a case of an injured worker “turned over on a scissor lift and had a broken back and took 18 months to get the surgery approved.”

The bill drew opposition from a business commenter, Randy Zook, who said the Arkansas workers’ compensation system is “not broken” and that this bill “would severely increase the costs of workers comp in Arkansas.” Zook warned, “If you want more litigation, if you want more lawsuits filed, then pay the lawyers more.” He said his organization opposed the bill by unanimous executive-committee vote.

Senator Payton replied that the fee language applies only when carriers improperly deny medically necessary care; he said attorneys representing injured workers would receive 12.5 percent up to a $5,000 cap when a commission or judge later determines care was wrongly denied. After a motion to pass, the committee held a roll-call. Votes recorded in the transcript included: Senator Hill — no; Senator Leding — yes; Senator Penzo — yes; Senator Payton — yes; Senator Love — yes; Senator Wallace — no. The clerk announced, “Bill fails.”

No statute or code citation was given on the floor; discussion referenced the workers’ compensation commission and the commission’s appeals processes.