Wednesday, July 15, 2020

Workers' Compensation COVID-19 Bill Signed by Governor (S.342)


The Governor signed S.342 into law on July 13, 2020.  S.342 was introduced in the Vermont Senate in April 2020 to address the COVID-19 pandemic and its impact on the workers’ compensation system.  The full text of the bill as signed into law is here:  https://legislature.vermont.gov/Documents/2020/Docs/BILLS/S-0342/S-0342%20As%20Passed%20by%20Both%20House%20and%20Senate%20Official.pdf

The Act gives the Commissioner of the Department of Labor the ability to issue guidance and adopt procedures to extend deadlines or temporarily amend or waive specific provisions of 21 V.S.A. Chapter 9 and the rules adopted pursuant to that chapter during the declared state of emergency.  Governor Phil Scott declared a state of emergency in Vermont on March 13, 2020, and the declaration has been extended through August 15, 2020.  The Act provides that any guidance or temporary procedures that are adopted by the Commissioner are effective during the state of emergency and then continue for 45 days after the termination of the state of emergency.  It is important to note that the Commissioner does not have to engage in the usual rulemaking process to adopt the guidance or temporary procedures. 

The Act creates a presumption of compensability for “front-line” workers who die or are disabled resulting from COVID-19 if the worker has a positive laboratory test for COVID-19 or a diagnosis of COVID-19 from a licensed healthcare provider between March 1, 2020 and January 15, 2021.  A “front-line” worker is an individual with an elevated risk of COVID-19 exposure (a job that requires the worker to have regular physical contact with known sources of COVID-19 or regular physical or close contact with patients, inmates in a correctional facility, residents of a residential care or long-term care facility, or members of the public in the course of his/her employment) employed as: a firefighter; law enforcement officer; emergency medical personnel (volunteer or paid); a worker in a health care facility; institution or office where healthcare services are performed by healthcare professionals; a correctional officer; a worker in a long-term care or residential care facility; a childcare provider providing childcare to children of front-line workers; a home healthcare worker or personal care attendant; a worker in a morgue, funeral establishment, or crematory facility; and a worker performing services that the Commissioner determines place the worker at a similarly elevated risk of being exposed to or contracting COVID-19 as the other listed occupations.  “Close contact” is defined as contact within six feet.

The Act also creates a presumption of compensability for death or disability resulting from COVID-19 for employees who are not front-line workers who have a positive laboratory test for COVID-19 or a diagnosis of COVID-19 from a licensed healthcare provider between April 1, 2020 and January 15, 2021.  The presumption only applies if the worker within 14 days prior to the date he/she is tested: had documented occupational exposure in the course of employment to an individual with COVID-19; or performed services at a residence or facility with one or more residents or employees who were either present at the time the services were performed and either had COVID-19 at the time or tested positive for COVID-19 within 14 days after the services were performed. 

Importantly, the presumption of compensability for non-front-line workers does not apply if it is shown by a preponderance of the evidence that the disease was caused by non-employment-connected risk factors or non-employment connected exposure.  Additionally, the presumption of compensability for non-front-line workers does not apply if the employer can show by a preponderance of the evidence that: the disease was caused by non-employment-connected risk factors or non-employment-connected exposure; or at the time the employee was potentially exposed to COVID-19 the employee’s place of employment was in compliance with the relevant COVID-19 related guidance for businesses and workplaces issued by the U.S. CDC and the Vermont Department of Health and any similar guidance issued by local municipalities (between April 1, 2020 and April 20, 2020) and the Restart Vermont Worksafe Guidance issued by the Agency of Commerce and Community Development and any similar guidance issued by local municipalities (between April 20, 2020 and January 15, 2021).

The Act takes effect on passage and is retroactive to March 1, 2020.  The Act contemplates that sections 1 and 2 (pertaining to guidance and procedures adopted during the state of emergency and to the presumptions of compensability) are repealed on January 15, 2021, unless there is subsequent legislation to the contrary. 

COVID-19 related legislation is untested at this point in Vermont.  There may be litigation in the future surrounding the presumption of compensability for non-front-line workers and the Commissioner’s determination of an employee as being in the “elevated risk” category.