Senate committee weighs S.173 to speed vocational rehab for injured workers, add state mediator
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Summary
The Senate committee reviewed S.173, which would remove a statutory initial screening for vocational rehabilitation, let injured workers self‑initiate services after a 90‑day carrier delay, require worker notification of future rehab rights, and fund a state mediator position to replace curtailed FMCS services.
Sophie Sadatney, legislative counsel, told the Senate Economic Development, Housing and General Affairs committee that S.173 “primarily does two things”: revise workers’ compensation vocational rehabilitation rules and create a mediator position in the Vermont Labor Relations Board to provide mediation services for public and private collective bargaining.
The bill would remove the statutory requirement that injured workers undergo an initial vocational rehabilitation screening, add language allowing injured workers to initiate vocational rehabilitation services themselves if an employer or carrier does not refer them within 90 days, and require paperwork informing workers of their right to seek vocational rehabilitation in the future. “If the employer fails to assign them a rehabilitation provider within the 90 days,” Sadatney said, the injured worker could start the process.
Workers’ compensation attorney Kelly Massapod, who represents injured workers, described the changes as modest but consequential for timing. “This bill does, first of all, it’s really short compared to last year,” she told the committee, and explained that the current 90‑day screening often fails to identify people who would benefit from more immediate vocational rehabilitation. Massapod said state vocational rehabilitation staff handling the screening are well‑intentioned but “they don’t do workers’ comp VR” and lack the specialized training to make entitlement assessments promptly.
Advocates and counsel told the committee that delayed screening frequently means injured workers do not begin retraining or other services while still on wage replacement, increasing pressure to accept settlements and making later rehabilitation harder to complete. The bill would also require the Department of Labor to include a notice on its forms that an injured worker “might be entitled to this benefit in the future,” even if not eligible at the time of initial filing.
On mediation, Sadatney and Vermont Labor Relations Board staff described a gap left by cuts to the Federal Mediation and Conciliation Service (FMCS). Committee witnesses said FMCS staffing was slashed and regional capacity has been uncertain; one witness summarized the effect as a large reduction in available federal mediators. S.173 would authorize the labor relations board to employ a full‑time mediator to provide free mediation services to public and private bargaining units. The bill includes a placeholder appropriation estimate of $115,000 for salary and benefits to make the position permanent, Sadatney said.
Committee members asked for additional data and witnesses, including vocational rehabilitation counselors, Department of Labor staff and federal contacts, before advancing the bill. Chair and members said they want more information on how often screening delays occur, the caseload for a state mediator and whether costs or conflicts would require more than one position.
The committee did not vote on S.173 at the hearing. Members requested supplemental testimony and budget details and signaled plans to call workers’ compensation staff and vocational rehabilitation counselors at a future session.