Committee advances workers' compensation overhaul after heated debate over fee standards

The Labor and Industrial Relations Committee on March 26 reported House Bill 780 with amendments after extended testimony and floor debate over how to limit litigation and set attorney‑fee standards in workers' compensation cases.

Chairman Furman, the bill author, said the bill restores an expedited administrative dispute resolution process and establishes “a single clear standard for punitive attorney fees” intended to reduce excessive litigation, speed dispute resolution and lower premiums for employers. He described the bill’s aim as getting workers back to work and reducing the system’s litigation burden.

Supporters including defense attorneys and business groups told the committee the measure will make the 2013 preliminary‑determination process usable today and reduce litigation costs. Attorney Trent Oubre said the earlier statute was “meant to fail” and that the bill modernizes technical requirements so the process works.

Injured‑worker advocates and plaintiff attorneys opposed parts of the bill. Joseph Joel LaSainte, who represents injured workers, warned that changing the standard that triggers punitive fees from a reasonableness test to an "arbitrary and capricious" standard would make it harder for injured workers to obtain penalties and attorney fees when insurers fail to handle claims properly, saying the shift "is just gonna incentivize insurance companies to put profits over injured workers." Other witnesses described recurring problems with understaffed adjusters and low penalties that fail to deter late or missed payments.

Representative Phelps offered an amendment to restore the prior "reasonable" standard; the committee debated at length and defeated that amendment on a roll call. After adopting committee‑originated technical amendments and voting on the final motion, the committee reported HB 780 with amendments.