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Committee Adopts Amendment to Workers’ Compensation Bill, Lowers Cap and Sends Measure Back With Vote
Summary
Senate Bill 285 was amended in the committee to lower a benefits cap, set an effective date of Jan. 1, 2026, and change a permanent partial disability formula; the committee adopted the amendment and then approved the bill as amended by recorded vote in committee.
The Public Health, Welfare and Labor Committee adopted an amendment to Senate Bill 285 that lowers a workers’ compensation cap and adjusts permanent partial disability calculations, and the committee later approved the bill as amended.
Senator presenting the bill said the amendment reduces a previously proposed cap from $200,000 to $100,000, establishes an effective date of Jan. 1, 2026 and changes a permanent partial disability formula to 75% of temporary total disability to limit cost increases to employers. After the amendment was offered, the committee adopted it by voice vote.
Several business and insurance representatives registered opposition or requested more time to review the amendment. Randy Zook of the Arkansas State Chamber of Commerce asked for additional review time and called for an opportunity to confer with experts. Carol Worley, chair of the legislative committee of the Arkansas Self‑Insured Association, testified the change would be “very detrimental to the employers in the state of Arkansas,” arguing that increased weekly rates and permanent disability settlements could materially raise costs for self‑insured employers. Worley provided a numerical example in the hearing transcript showing a higher weekly benefit from a prior average and estimated a large increase in settlement values for a 10% rating.
Kirk Kinnickram of McGriff Insurance and other insurers also expressed concerns about duplication of long‑term disability products and costs to employers. Employers who supported the amendment argued the change was modest and necessary to modernize the cap for current wages.
After discussion, a motion to pass the bill as amended was seconded and the committee recorded a roll call in which the chair announced, “Okay. 5 yeses. Congratulations. You've passed your bill as amended.” The transcript records the chair’s acknowledgment that the measure passed as amended.
Ending: The bill will move forward with the committee’s due‑pass recommendation; opponents asked for additional work on employer costs and requested stakeholder negotiation before further floor consideration.
