8-20-2018; Understanding Discovery in IL Workers' Comp; Chicago Tribune Barbeques Billionaire Alderman Burke’s Mishandling of Chgo’s WC “Defense” Program; Shawn Biery to Present on IL WC and more

Synopsis: Understanding Pretrial Discovery in IL Workers' Comp for All Sides.

 

Editor’s comment: We hear attorneys and some observers claim “there is no discovery” in Illinois workers' compensation. This urban legend is sort of right but also sort of wrong. I want to clear the air about it. I assure all of my readers there is “pretrial discovery” in Illinois workers' compensation but you have to understand the Rules Governing Practice and the Illinois Workers' Compensation Act to make sense of the concept.

 
When lawyers and claims handlers talk about “pretrial discovery,” they are referring to the civil litigation pretrial process of finding out what the other side’s claim might be. In typical civil litigation, for example, a motor vehicle accident, the parties are usually complete strangers to each other. The pretrial process of “discovery” allows either side to:

 

  • Ask for sworn answers to written interrogatories about relevant issues relating to liability and damages;
  • Ask for production of relevant documents and other written information to be used at a later pretrial or hearing;
  • Allow one party to demand admissions or denials of ultimate facts relevant to the claim;
  • Allows both parties to conduct “discovery” depositions of lay and expert witnesses to figure out what they might say at any hearing; and
  • Allows both parties to get advance disclosures of evidence and witnesses to be presented at a trial.

 

The idea of discovery is to get to the strengths and weaknesses of each sides’ case and hopefully move the matter to settlement or hearing. In the Illinois workers' compensation system and many U.S. Workers' Comp systems, there are limited opportunities for such “discovery” to take place. In fact, in most workers' comp systems written and oral pretrial discovery is greatly limited.

 

In the Illinois workers' comp system, if you don’t know the rules, the first time you may hear claimant’s story may be when they testify at any hearing. That sets up what we call “trial by ambush” because your attorney may not know what is coming at them until the parties sit down and try the claim. A wise risk manager and/or claims handler should be devoted to investigating fully and avoid surprises.

 

Why is the Illinois workers' compensation system like this? Isn’t it a scary thing when a witness tells their story for the very first time to an arbitrator or hearing officer? Well, it was considered a way to save money and streamline the system. However, it also assumes employers are going to push for accident investigation and not wait until the last possible moment to act on and prevent accidental injuries.

 

How does that work? Well, the parties in a workers’ comp claim aren’t supposed to be strangers. In Illinois workers' comp, there is a statutorily required 45-day reporting rule—the employer has to be made aware of the event or they can fight it on that basis alone. We have many clients who are ramping that rule forward to require accident reporting within the same shift or same 24-hour period. If the employee doesn’t report, some of our clients are disciplining the worker or even terminating. If you aren’t already doing so, we urge you to consider it. Even in union environments, we are seeing unions allowing for termination or discipline if the employee doesn’t timely report an accidental injury. If you want thoughts and comments on accident reporting rules, please send a reply.

 
Once learning of the event, it is incumbent on the employer to investigate, investigate and investigate. If you need questions or thoughts on thorough accident investigation, send a reply. If you don’t investigate a work accident report, you become the equivalent of a ship without a rudder—you are going to drift along and possibly run aground on the rocks. In my view, it is impossible to accurately reserve a claim, target maximum medical improvement or return to work or make any financial sense of your workers' comp claims without a thorough accident investigation.

 
Other than a thorough accident investigation, what other pretrial workers' comp “discovery” tools are out there?

 
A.   Webcam or audio recorded statements of claimant;


B.   Witness statements;


C.   Safety committee—supervisor review of accident;


D.   Nurse case management;


E.    Surveillance/security cameras;


F.    Medical histories;


G.   Web research;


H.   Independent medical evaluators;


I.     Vocational counselors;


J.    Pre-trials;


K.   The IL WC ”stip sheet” or request for hearing form.

 
All of these concepts allow an employer and your defense lawyer to learn about the pending claim in various ways. Most of the concepts are informal but can lead you to best understand if your reserves are accurate, your defenses have merit and how to best proceed in any claim.

 
After you have the initial accident report and a Health Insurance Portability and Accountability Act and Genetic Information Privacy Act (HIPAA-GINA) compliant release signed by claimant (if you need one, send a reply), you then can move to the following tools to document/question any claim.

 
A. Webcam recorded statements of claimant--If you get to it rapidly enough, you can “burn” a DVD of claimant in the right situation to document their account of the event. This creates compelling evidence if later versions arise or if the recorded statement doesn’t match the medical histories. We consider this option to create a strong incentive for ramped-up accident reporting requirements. If you demand timely accident reporting, you can then get these statements before claimant “lawyers up.” If you want our webcam questions, send a reply.

 
B. Witness statements—in a serious claim, you will then have documentation needed to accept or deny any claim. Consider webcam statements of co-employee witnesses to confirm their future testimony.

 
C. Safety committee-supervisor review—in a moderate to serious injury, you will go miles to documenting an event and buttressing any defenses if you go the extra mile.

 
D. Nurse or medical case management isn’t truly supposed to be a “discovery” tool but the medical information moving to the treating doctors, claimant, claimant’s counsel, the employer and insurance carrier/third-party administrator has to be viewed as such.

 
E. Surveillance/security cameras are unquestionably “discovery” tools that can be used to document the accidental occurrence and also be used to fight any dispute about MMI or return to work.

 
F. Medical Histories--as I have told my law students and readers, the best analysis to confirm or rebut any claim is to analyze the accident report vis a vis what claimants are telling the treaters. Treating doctors have sharp objects and may perform surgeries and other challenging care so a patient is usually likely to be very forthcoming in telling the doctors what happened to them.


G. Web research—although this has become somewhat limited due to heightened security on many social websites, it still is one way to learn information about a claim, a doctor or witnesses.

 
H. IME’s—like the histories to a treating doctor, what an IME doctor learns in the examination should be considered “discovery” and can assist in reserving, accepting or defending a claim.

 
I. Vocational counselors also provide “discovery” to veteran claims handlers and will give you background and details upon which to manage major WC issues.

 
J. Pre-trials can be helpful for both sides to give their version of the claim with the hearing officer present—you can update reserves or hone defenses if your defense lawyer listens and learns from the process (and the claim doesn’t amicably settle).

 
K. Last but not least, claimants’ counsels are supposed to fill out and complete a “stip sheet” or Illinois Workers' Compensation Commission request for hearing form to get a hearing date. This form can provide the basis of disputes about temporary total disability/lost time, medical bills, the supervisor to whom they assert notice of an injury was provided, any claim for penalties/fees and other issues.

 
We assure you all of these tools provide lots of information when and if they are used wisely. All risk managers, claims handlers and attorneys on both sides should be thoroughly aware of their nuances—my students and readers should now understand there is lots of “pretrial discovery” in the process, if you have the right defense lawyers on your side.

 

Synopsis: Chicago Tribune Barbeques Billionaire Alderman Ed Burke’s Mishandling of Chicago’s WC “Defense” Program.

 

Editor’s comment: Understanding Billionaire Chicago Alderman Ed Burke is one of the most powerful political figures in this entire state and is married to IL Supreme Court Justice Anne Burke, I still feel it is important to read the Chicago Tribune’s Editorial Board’s criticism of his mishandling of the Chicago WC “Defense” program. Everything you read below is my opinion and to my understanding, I am entitled to my opinions. If you want to know how and why I feel Ed Burke is a billionaire, send a reply and I will lay out the math for you.

 

The Tribune Board noted the City misspends at least $100M a year every year on workers’ comp costs, based on a 2016 Inspector General report. I point out the actual number is basically impossible to discern. Some of the money is cloaked in Department budgets and some is in general funds. Billionaire Alderman Burke appears to hide it from prying eyes of other alderman, the Mayor and the City’s Inspector General. In short, only Ed Burke really knows what he is doing.

 

To Dream the Impossible Dream—trying to manage thousands of IL WC claims without any staff to do so.

 

To my understanding, there are over 3,000 pending IL WC claims filed by City of Chicago employees. The City has one person trying to ‘manage’ more than 3,000 expensive WC claims!! There is no one in City government who has the job title of WC claims handler/manager.

 

To my further understanding there is only one defense lawyer—just one—who is assigned to try to handle all of the thousands of claims that make up our City’s WC litigation. In my view, there is literally no chance, none, that one person could handle such an impossible workload.

 

Understaffed defense programs insure the City of Chicago keeps paying and paying, even the most frivolous and unfounded WC claims.

 

Why Does Ed Burke Dole Out Over $1B in WC Benefits to City Workers Each Decade?

 

In my view, Illinois State and local governments are a corrupt “benefit-ocracy.” There are many paths where our tax dollars are quietly doled out in big gobs to government workers to get their allegiance and loyalty in elections. Hilariously unethical and questionable workers’ comp claims management is just one of the many ways this happens. Police and fire disability pensions and benefits are another way—if you want examples of such abuses, send a reply. The biggest kahuna of your tax dollars flowing to government workers are the unfundable fake government pensions and basically free lifetime healthcare benefits our retired government workers receive. The State of Illinois is about a quarter TRILLION in debt from the borrowing to fund the truly unfundable fake gov’t pensions. I am not sure why so many folks were mad about welfare benefits back in the day when gov’t pensions clearly are giving out our money without any basis to do so.

 

If you were going to retire and receive double or quadruple income in retirement as compared to what you made while working, would you be loyal to the people who got you that largesse?

 

If there was money for all of it, fine. Trust me, folks, they are borrowing and borrowing to keep this version of the RMS Titanic on the ocean. At some point, our State and local governments are going to tip up, crack apart and sink rapidly, like the old cruise ship did in 1912.

 

If you want to read the Chicago Tribune editorial, take a look: http://www.chicagotribune.com/news/opinion/editorials/ct-edit-chicago-burke-worker-comp-20180809-story.html

 

I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

 

 

Workers' Compensation 101:

Tips and Tricks for Navigating the Illinois WC System By Shawn Biery of Keefe, Campbell, Biery & Associates

 

Next week--Aug. 28th, 2018

11:30am - 1:00pm

 

 

 

 

 

This presentation will assist in allowing you to gain a greater understanding of the IL Workers Compensation system and tips to understand what occurs during a workers compensation claim.

 

Join attorney Shawn Biery of Keefe, Campbell, Biery & Associates for a webinar regarding Work Comp 101. Shawn will discuss key terms & terminology, issues you may encounter during claims, what to look for to comply with the IL WC Act and a variety of topics which will increase your knowledge of workers compensation and assist in claim handling, investigations, setting up handling plans in advance, and overall steps you can take to manage your claims, even before they are filed with the Illinois Workers Compensation Commission.

 

Register Here

8-6-2018; Shawn R. Biery's IL WC Rate Sheet Available!!!; Gene Keefe on Alderman Burke and Chicago WC Morass and more

Synopsis: AUGUST IN IL—ARE WE SWEATING DUE TO HUMIDITY OR NEW IL WC RATES BEING  POSTED???—UPDATED RATE SHEETS AVAILABLE SOON FOR ILLINOIS WC RATE INCREASE!!! 

 

Editor’s comment: Illinois WC Rates Have Updated Again So Please Be Aware Of The New Rates or Your Claims Handling Will Suffer and Penalties May Ensue.

 

Email Shawn at sbiery@keefe-law.com AND Marissa at mpatel@keefe-law.com to Get a Free and Complimentary Email or Hard Copy of Shawn R. Biery’s Updated IL WC Rate-Sheet!

 

We like to continually hope it’s a sign of a growing state economy and influx of business however that doesn’t appear to be the case—even though rates continue to increase almost every cycle as we continue to watch the growth of IL WC rates. As we have mentioned in the past, since in the 1980’s, the IL WC Act provides a formula which effectively insures no matter how poor the IL economy is doing WC rates continue to climb.

 

We caution our readers to pay attention to the fact the IL WC statutory maximum PPD rate is $790.64. However, this rate is only through June 30, 2018 and the new max PPD will be published in January 2019. When it will be published in January 2019, this rate will change retroactively from July 1, 2018 forward.  At that time, if you don’t make the change, your reserves will be incorrect--if this isn’t clear, send a reply.

 

The current TTD weekly maximum has risen to $1,480.12. A worker has to make over $2,220.18 per week or $115,449.36 per year to hit the new IL WC maximum TTD rate.

 

The new IL WC minimum is creeping closer to the $725k floor. That amount is now 25 years of compensation or $555.05 per week x 52 weeks in a year x 25 years or $721,565.00! The new maximum IL WC death benefit is $1,480.12 times 52 weeks times 25 years or a lofty $1,924,156.00 plus burial benefits of $8K. IL WC death benefits also come with annual COLA increases which we feel can potentially makes Illinois the highest in the U.S. for WC death claims.

 

The best way to make sense of all of this is to get Shawn Biery’s colorful, updated and easy-to-understand IL WC Rate Sheet. AGAIN—If you want just one or a dozen or more, simply reply to Shawn at sbiery@keefe-law.com AND Marissa at mpatel@keefe-law.com  They will get a copy routed to you once we get laminated copies back from the printer—hopefully before they raise the rates again! Please confirm your mailing address if you would like laminated copies sent to your home or office!

 

 

Synopsis: Gene Keefe on City of Chicago WC Defense Program Morass Under Alderman Ed Burke.

 

Editors’ comment: The news sources in Chicago were a’rocking when a federal lawsuit was recently filed to seek to force the City of Chicago to stop letting Alderman Ed Burke run the morass that is Chicago’s WC defense program. Jay Stone, who I consider a complete and well-intentioned gadfly was behind the legal action that I feel is going to rapidly be dismissed. It has opened some debate I consider important for you, as a reader.

 

After that litigation got filed, the Better Gov’t Association joined in the fray and they want Chicago’s WC Program to also be taken out of control of Alderman Ed Burke. This government corruption watchdog group voiced its support for efforts to move Chicago's workers' compensation program out from under the control, or perhaps the comical lack of control, of a powerful city alderman. I don’t see any true value in moving

the WC claims from Alderman Burke to Mayor Rahm Emanuel—the City needs an outside source to be responsible for properly managing these benefits.

 

Here are my thoughts in order of importance:

 

  1. Alderman Burke is the husband of IL Supreme Court Justice Anne Burke. I would think if you or I were married to an IL Supreme Court justice, you would have the highest ethical standards of any politician in this crooked state. Please keep reading to weigh your thoughts on the ethics involved. I am happy to meet with Justice Burke to discuss my opinions on this topic at her convenience.

 

  1. Alderman Burke is near or close to being a billionaire, yep, a billionaire, because he wants all of his supporters and political donators to give him the corporate contact or decision-maker at their company for Chicago’s comically “fake” real estate tax appeals. Alderman Burke uses those contacts to legally make the billions he has made over the years. The reason I feel Chicago’s real estate tax appeals are “fake” or phony is the unquestioned fact there is no legal work going on. No IL law school teaches “real estate tax appeals.” The IL Bar exam asks no questions about this area of “law.” Alderman Burke doesn’t appear, file briefs or argue before any judge to obtain the hundreds of millions in legal fees earned by his firm in the nutty process every year and the entire process is ethically flawed. Basically, one politician—the Cook County Assessor—first screws up our real estate taxes. In response, someone files what is comically called an “appeal” so the “appeal panel” considers other properties around the subject property to “re-set” the taxes to what is arguably the accurate amount and the politicians, as lawyers, make zillions on the process. If the County Assessor just got our real estate taxes correct in the first place, the whole thing would disappear. I feel there is enough computing capability in your cell phone to get any assessment correct or very close to correct—instead, the Assessor still uses pen and paper and calculators and other silly computational devices to insure they are repeatedly wrong in setting assessments. Why would they want to be wrong? So the other politicians make zillions on the process…

 

  1. Alderman Burke accepts/seeks legal but ethically challenged donations from three Claimant firms who have “favored nation” status and get most of the City of Chicago WC claimant work. In my opinion, one defense firm also gets favored nation status to defend City of Chicago “emergency” petitions. It is my understanding and opinion, if a defense firm gets such work, they can bill and bill and bill and bill to their heart’s content to potentially make up for their donations to Alderman Burke. No one audits such legal billing that I am aware of. To get the defense work, the firm has to donate quarterly along with making with one large annual payment, I mean donation each year.

 

  1. It is my opinion, the City of Chicago may spend between $120M-200M each year in WC payouts. It is my further feeling Alderman Burke “hides” all WC payments/reserves and budgets either in the numerous City of Chicago departments or wherever he feels best. If you send an FOIA request for how much the City of Chicago spends on WC every year, it was my experience they will tell you they don’t know and have no way to find out. It is my feeling the “hiding” of WC payouts is unethical and inappropriate in an open government.

 

  1. If you check online for City of Chicago job titles, there is no one identified as a claims handler manager for WC. There is no member of the City of Chicago Corporation Counsel’s office designated or specifically trained as a workers’ comp defense lawyer.

 

  1. To my understanding, the City of Chicago has as many as 3,000 pending WC claims at any time. They have one claims manager and one defense lawyer handling about thirty times the work level of most private claims or defense firms. The lack of management or legal defense insures payouts will be huge to injured City workers.

 

  1. I am not aware of the City of Chicago ever doing a pro se settlement under the guidance of Alderman Burke—every claim goes “legal” and one or more of his favored lawyers makes the money to handle.

 

  1. To my further recollection, Alderman Burke does not feel the City of Chicago can and should bring any injured worker back to light work—he dismisses the concept as worthless despite the fact every company on the planet tries to implement it. Because of this “no-light-work” focus by this powerful politician, injured City workers are allowed to stay off work for years and years on TTD. When they settle, the money is well into the six-figures.

 

  1. To my further recollection, Alderman Burke does not allow for surveillance of injured City workers on TTD. It is my opinion, he doesn’t want his private eyes to catch loyal precinct workers who have side jobs and second jobs or operate businesses while on TTD.

 

In short, I feel the City of Chicago is nutty when it comes to running their own WC defense program. I don’t feel the Mayor’s Office has any chance to improve on their dismal results. I feel there is a strong need for an outside company or force to handle it and try to bring the concept in line before this version of the Titanic hits the iceberg, bringing the City of Chicago down with it.

 

7-30-2018; Illinois Policy Institute Chronicles WC Corruption in IL Municipalities and Local Governments; IL WC IME Questions for You! and more

Synopsis: Illinois Policy Institute Chronicles WC Corruption in IL Municipalities.

Editor’s comment: We just saw a great article from Victor Caruso of the IL Policy Institute outlining their research on failed WC defense in at least one Illinois municipality. Mr. Caruso found The City of Belleville, IL offers a shocking example of what I feel is outright corruption in workers’ comp for local governments. Since 2013, Belleville has spent more than $2.5 million on workers’ comp settlements, according to city records of Illinois Workers’ Compensation Commission contracts. In 2018 alone, tiny Belleville, IL with a population of about 42,000 has so far spent $420,000 settling workers’ comp claims. Between 2013 and 2018, Belleville’s costliest year for workers’ comp payouts was 2016, during which the city spent $662,000 in just that year on workers’ comp settlements.

Mr. Caruso’s research indicates the WC claims vary widely in severity and cost. One claim settled in 2013 involving a worker “hit by a car while collecting signs” resulted in a payout of $26,100. Meanwhile, a comparatively less serious claim filed that year resulting from “lifting a heavy garbage can” earned one worker a $125,000 settlement.

Shocking WC Settlements for Almost-No-Lost-Time Claims

Many cases in which workers reported sustaining only mild injuries, and returned to work the next day, nonetheless resulted in large workers’ comp settlements, records show. One worker who reported an injury sustained while landing awkwardly exiting a firetruck collected $39,750. Another worker who reported an injury after pulling a hose collected $24,000. Both returned to work the day after their respective incidents. In fact, more than 35 percent of City of Belleville workers who received a workers’ comp payout between 2013 and 2018 returned to work the day after the reported accident date – amounting to nearly $360,000 in settlements. Huh? Who is watching the taxpayers’ money?

A City of Belleville human resources official confirmed payouts for workers’ comp settlements are paid directly by the city, unless a settlement surpasses $250,000, in which case insurance coverage kicks in.

Mr. Caruso also notes workers sustaining the most extreme injuries – “dealing with a combative juvenile” or “trying to remove a door at a fire” – were more likely to receive six-figure settlements. However, comparably ambiguous and modest claims – “testing heavy equipment” or “hauling hose line” – also delivered at least $100,000. Five workers who reported “repetitive trauma” received between $19,300 and $33,000.

Workers’ comp insurance as well as provisional income injured workers receive while off the job collectively cost state and local governments $1 billion each year in Illinois, a 2017 Illinois Policy Institute report found. And local governments bear the brunt of this mandate, shouldering $727 million of that nine-figure annual bill.

Corruption in IL WC For State and Local Gov’ts Has Been Present for Decades

I am sure our IL State WC defense program is a shambles—they blindly pay hundreds of millions each year to wily workers. The City of Chicago WC defense program is run by Alderman Ed Burke who happily accepts campaign donations from WC defense lawyers and WC plaintiff lawyers and anyone else who wants to benefit via workers’ comp at the expense of Chicago taxpayers. Chicago also pays zillions in WC and other disability benefits.

The IL Policy Institute confirms Illinois’ costly workers’ comp system can’t be blamed directly on individual workers. I do feel lots of municipalities and other small IL governments corruptly use the WC system as a way to reward co-workers and give them time off with pay. It is easy to blame the system when you are doing nothing to defend your government from abusers and charlatans.

A 2015 report by Illinois’ Local Government Consolidation and Unfunded Mandates Task Force found workers’ comp to be the third-most burdensome unfunded mandate for Illinois municipalities. This runs parallel to the effect the state’s workers’ comp law has on the private sector, driving businesses across state lines toward more practical regulatory environments.

While I agree it is necessary to have a system in place through which workers are made somewhat whole for workplace accidents, Illinois’ workers’ comp law has failed to evolve with the changing landscape of modern workplace environments. Originating after the Cherry Mine Disaster in 1909, an era in which workplace danger was commonplace, Illinois’ workers’ comp law was established to guarantee rapid medical coverage and replacement wages to workers in the event of a work-related injury. The system requires good government and solid claims handling principles—if your city isn’t doing so, taxes are certain to spiral.

I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

Synopsis: Questions on an IL IME for You!

Editor’s comment: We are asking our readers for your thoughts and guidance.

We have a claim where our client wants Claimant to attend an IME.

 

An IME was set with mileage included in the notice.

 

Petitioner did not attend without explanation given.

 

Here are some IL IME questions:

 

  • Does the defense have to reset such an IME? What happens if they don’t?
  • Can Petitioner have a doctor present in the examining room at their own expense?
  • Can Petitioner have a lay-person (not a doctor) in the examining room at their own expense?
  • Can the examinee demand the IME be videotaped?
  • Can the examinee secretly audio-record the IME?
  • Can the examinee require a specific time for the IME?

 

What do you think?