Vermont Senate Bill 23 Amended By Committee

The Senate Finance Committee took testimony on S. 23 which requires specific disclosures when reaching workers' compensation settlements where all, or some benefits are resolved on a full and final basis.  

The legislation included specific language that the document should include "the approximate amount of compensation the employer would be required to pay the employee if the parties did not enter into the agreement”.  

After testimony was given the bill was amended by striking all language in Section 1.b after the word "injury". The section now reads "describe the employee's injury, including any rating assigned to the injury."  

Here is the current version of the bill as amended:

(1) The employer provides the employee with a written disclosure explaining the consequences of the agreement with respect to the employee’s rights to future benefits by stating- 

      (a) the amount the claim has resolved for, 

      (b) a description of the employee’s injury, including any rating assigned to that injury and the approximate amount of compensation the employer would be required to pay the employee if the       parties did not enter into the agreement,

      (c) all benefits that will terminate as a result of the agreement and 

      (d) any rights to benefits that will be relinquished by the agreement; and

(2)  The employee signs the disclosure statement acknowledging that the employee is informed of and understands the terms of the agreement and its consequences.

Vermont Senate Bill 23 Requires Disclosures for Final Agreement

A bill has been introduced into the Vermont Senate requiring that if an employer and injured worker enter into an agreement that constitutes a full and final settlement of all or a part of the employee’s claim, the Commissioner shall not approve the agreement unless:

(1) The employer provides the employee with a written disclosure explaining the consequences of the agreement with respect to the employee’s rights to future benefits by stating- 

      (a) the amount the claim has resolved for, 

      (b) a description of the employee’s injury, including any rating assigned to that injury and the             approximate amount of compensation the employer would be required to pay the employee if the       parties did not enter into the agreement,

      (c) all benefits that will terminate as a result of the agreement and 

      (d) any rights to benefits that will be relinquished by the agreement; and

(2)  The employee signs the disclosure statement acknowledging that the employee is informed of and understands the terms of the agreement and its consequences.

The online link to S. 23 is located here:

 http://legislature.vermont.gov/assets/Documents/2016/Docs/BILLS/S-0023/S-0023%20As%20Introduced.pdf

Making Settlement Payments Payable to Claimant's Attorneys

Common practice in Vermont has been that a lump sum payment for benefits is made payable to the claimant and sent to the claimant's attorney with Department approval.  It appears that, due to IOLTA (Interest on Lawyer's Trust Accounts) trust account requirements, attorney's representing injured workers have recently requested that drafts be made payable jointly to the injured worker and the attorney. 

The Vermont Workers' Compensation Rules provide that, "a check for a claimant's workers' compensation benefits may not be made payable either solely or jointly to the claimant's attorney unless approved, in writing, by the commissioner." Vermont Workers' Compensation Rules, Rule 10.5  Carriers may consider incorporating language into the settlement documents that allows the settlement draft to be made payable to the injured worker and the injured worker's attorney.  This can be done in addition to the language allowing for the settlement draft to be sent to the injured worker's attorney.