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Senate committee advances bill to alter workers’ compensation pay formulas, sends it to Ways and Means
Summary
The Senate Committee on Labor and Business adopted an amendment to SB 1519 that changes temporary and permanent total disability pay formulas and referred the bill to the Joint Committee on Ways and Means for fiscal vetting.
The Senate Committee on Labor and Business adopted an amendment to Senate Bill 1519 on Feb. 9, 2026, and voted to refer the measure to the Joint Committee on Ways and Means.
Whitney, a legislative analyst, summarized the bill and the dash‑2 amendment as modifying how workers’ compensation pays workers during periods of temporary and permanent total disability: both would receive 75% of the worker’s wage up to 75% of the average weekly wage, and 65% of the worker’s wage that exceeds 75% of the average weekly wage. The dash‑2 amendment also makes the changes apply to claims with a date of injury on or after Jan. 1, 2027.
Committee members asked whether those changes could create narrow "benefit‑cliff" effects for recipients of other public benefits. Senator Dreesen cautioned the panel about potentially shifting a small number of workers across eligibility thresholds for programs such as SNAP. Senator Dreesen said she was concerned about a possible benefit cliff but ultimately indicated general support for the concept while urging awareness of side effects. The chair and members emphasized that the measure will receive additional fiscal scrutiny in Ways and Means.
Vice Chair Hayden moved to adopt the dash‑2 amendment; the committee approved the amendment without objection. A subsequent motion to send SB 1519 as amended to the Senate floor with a "do pass" recommendation and referral to the Joint Committee on Ways and Means was made and carried. The chair noted there will be no carrier assigned now but asked to be the carrier should the bill come out of Ways and Means.
The committee discussion repeatedly framed the matter as a policy change that can have small, localized employer impacts even if overall plan effects are expected to be minimal. Members stressed that employer contribution rates and the state risk fund would need to be monitored once the measure’s fiscal consequences are clearer.
The committee closed the SB 1519 work session and moved on to other agenda items.
