Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Senate committee advances bill to restore employer subrogation rights, cap recovery at half of third-party awards
Summary
The Senate Public Health, Welfare and Labor Committee voted to pass SB 530, which would clarify employers' subrogation rights in third-party liability settlements and allow employers or carriers to recover up to half of a claimant's third-party recovery. Supporters say it prevents "double recovery"; opponents say it risks further shortchanging injured workers.
Senator Dave Wallace, sponsor of SB 530, told the Public Health, Welfare and Labor Committee that the bill is meant to "level the playing field" when injured workers recover from a third party and employers seek reimbursement for medical bills and lost wages already paid under workers' compensation. "This work comp bill is about leveling the playing field," Wallace said during his presentation.
Attorney Guy Wade, who represents employers, told the committee current Arkansas caselaw has effectively stripped employers of statutory subrogation rights under the "made whole" doctrine and that SB 530 would restore a statutory entitlement, capped at one-half of a claimant's recovery. "So really what…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
