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Committee adopts amendment to workers'comp bill after employers, insurers warn of cost increases
Summary
The committee adopted an amendment to a workers'compensation bill that lowered a cap and adjusted permanent partial disability rates; employers and self-insured groups warned the changes would raise employer costs and asked for delay and further negotiation.
Senate Bill 285 returned to the Public Health, Welfare & Labor Committee with an amendment offered by sponsor Senator Payton to lower a statutory cap, set an effective date of Jan. 1, 2026, and modify the calculation of permanent partial disability benefits.
"It lowers the cap from a 20 to a hundred thousand in the amendment. It establishes an effective date of January first of 2026 ... and the original bill affected permanent partial disability in a way that drove the cost way up. And so this takes the permanent partial disability back to 75 percent of the temporary total disability," Senator Payton told the committee when proposing the amendment.
Witnesses representing employers and self-insured groups urged more time and negotiations. Carol Worley, chair of the legislative committee for the Arkansas Self Insured Association (speaking also on behalf of the Chamber of Commerce), warned the changes would be "very detrimental to the employers in the state of Arkansas," and provided an example that the temporary total disability weekly rate would rise from the current $903 to $1,346 under the new formula she calculated.
Kirk Kinnickram of McGriff Insurance and other employer representatives said many employers would bear the full increase dollar for dollar when they self-insure, and they urged delay for stakeholder negotiation. The sponsors said the amendment moved the bill toward a compromise and preserved protections for workers.
After debate, committee members adopted Senator Payton's amendment by voice vote and then adopted the bill as amended. The committee recorded a roll-call vote after final motion and passage; the transcript shows affirmative votes from Senators Flippo, Hill, Penzo, Payton and Love and a recorded no from Senator Wallace. The chair announced the bill passed as amended.
The committee's action will send the bill forward with the amendment capping certain benefits and changing the permanent partial disability calculation as described by the sponsor. Supporters urged the change as an update to fit modern pay scales; opponents said the amendments did not fully address employer concerns and asked for further negotiations outside committee.
