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Labor commissioner defends fee-funded operations, reviews civil-penalty and second-injury fund provisions
Summary
The Department of Labor confirmed its operations are largely agency-income funded (workers' comp assessment and restricted fees), reviewed civil-penalty practices and proposed statutory clarifications for wage-holdings and workers' compensation hearing notice rules; department also discussed second-injury fund sunset considerations.
Commissioner Maryfield (commissioner name as presented) briefed the appropriations committee on the Department of Labor's budget structure, revenue sources and several legislative items in House Bill 2.
The department explained two primary income sources: (1) an administration fund assessed pro rata on insurance carriers writing workers' compensation (based on claims paid), which funds most of the department's operating budget; and (2) a restricted fund (RSA 273) fed by fees, fines, certificates and licenses for other Labor activities; restricted-fund balances are turned back to the general fund when appropriate.
Commissioner Maryfield described specific enforcement and fee issues: the department imposes civil penalties (statutory cap cited) for wage-and-hour and other violations; penalties are calibrated by a rubric considering severity and repeat violations rather than applying statutory maxima by default. The department also collects late-reporting penalties from carriers (statute allows up to $50/day; the department currently charges $12/day after a 10-day grace period for late reports).
On wage-holdings and wage settlement money the department receives and holds when employees cannot be found, officials seek statutory clarification to retain those funds in a wage-claim holding account (rather than lapse them at year end) and to allow eventual disposition under abandoned property rules if unclaimed after the statutory period.
Commissioner Maryfield discussed House Bill 2 items: restoring a shorter payment window for workers' compensation awards (department proposed reverting to a five-day payment obligation after a decision rather than a longer statutory timeline adopted years ago) to reduce delays in worker payments; clarifying confidentiality for the workers' compensation appeal board records; and adjusting rules so notices may be served electronically to one party when consent is available, to reduce process delays caused when both parties do not consent to electronic service.
The department also raised the second-injury fund: the department had proposed sunsetting the fund and stopping new claims, but the provision was removed during the legislative process. The commissioner noted the fund has been administratively burdensome and that its continued existence mostly reallocates payments among carriers rather than changing overall system costs.
Committee members asked technical questions about penalties, confidentiality and electronic service. The department said it would supply more statute citations and provide follow-up on enforcement and fund details on request.
