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Subcommittee unanimously reports HB426 to clarify workers' compensation offsets after third‑party recoveries
Summary
HB426 clarifies that workers' compensation awards — including lifetime medical and indemnity benefits — continue after a third‑party recovery and requires employer credits to be applied pro rata so benefits are not suspended; the subcommittee reported the amended bill 7–0.
Delegate LeVar Bolling presented an amendment to HB426 that clarifies how an employer's offset against workers' compensation benefits operates after a claimant secures a third‑party recovery. The amendment replaces prior language on reimbursement of attorney fees and instead provides that during the offset period, a claimant may make payments for medical expenses and the employer must continue to reimburse the claimant's proportionate share of attorney fees and costs until the employer's credit is exhausted.
Supporters, including a Virginia trial lawyer association representative and worker advocates, described the change as a common‑sense clarification that preserves ongoing benefit payments while allowing employers to apply offsets pro rata. Self‑insurer representatives said they had no position at the hearing and would continue discussions on technical amendments.
The subcommittee reported HB426 with amendments by a 7–0 vote.
