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Subcommittee advances workers' compensation change on third-party suits
Summary
H.3774, filed by a Representative Johnson after an oversight study, was reported favorably by the subcommittee; the bill amends section 42-1-560(b) to adjust timing for third-party actions and adds that failure to notify the commission or carrier does not constitute an election of remedy.
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Chairman Jeff Johnson told the subcommittee that he filed House Bill 3774 following an oversight study of the Workers' Compensation Commission and that the bill amends section 42-1-560(b) concerning rights and remedies against third parties in workers' compensation cases.
Johnson explained that the bill would require an injured employee's third-party action to be commenced within specified timing (described orally as "not later than 1 year prior to the expiration of time in which the action the carrier has accepted the liability") and would add a provision stating that failure to notify the Workers' Compensation Commission, the employer and the carrier of a workers' compensation action "does not constitute an election of remedy." He referenced the Callahan case as background for why the change is needed and said electronic filing and notice systems lessen the risk that notice will not occur.
There were no public witnesses signed up on the bill. After brief member questions and clarification (one member asked whether Section C effectively gives the carrier an assignment, which the chairman answered "yes"), the committee ordered a roll call. The clerk recorded "Aye" votes from Chairman Johnson, Representative William Bailey, Representative Robbie Robbins and Representative Seth Rose; the subcommittee reported H.3774 favorable and will place it on the full committee agenda.
The transcript does not include legislative fiscal notes or the full amended statutory language; the chairman summarized the bill's intent and legal background on the record.
