MACo Endorses Fair & Equitable Approach to Workers Compensation

MACo submitted written testimony in support of HB 693, Workers’ Compensation – Permanent Partial Disability – Compensation, to the Senate Finance Committee on February 23, 2016.

The bill would decrease the maximum weekly compensation an employer must pay a covered employee with a permanent partial disability that lasts for less than 75 weeks. The bill affects claims occurring on or after January 1, 2017. The proposed legislation provides that the maximum compensation is the lesser of 1/3 of the employee’s average weekly wage or $114. Under current law, the maximum compensation is the lesser of 1/3 of the employee’s average weekly wage or the State average weekly wage ($172 for 2016).

From the MACo testimony,

One of the important roles of Maryland’s workers’ compensation system is to provide local governments and other employers with some level of certainty about the costs they might face for potential injuries so they can ensure appropriate budgeting and risk management practices are in place. As legislative and policy changes are proposed to increase costs and decrease the certainty of the workers’ compensation system, MACo believes that SB 534 will help maintain a fair and equitable balance.

The bill would also result in substantial savings to the State and local governments and private sector employers.

An identical cross-filed bill, SB 534, was heard on February 16 in the Senate.

For more on 2016 MACo legislation, visit the Legislative Database.

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