1.1                          A bill for an act 
  1.2             relating to workers' compensation; increasing the time 
  1.3             limit for temporary total disability; increasing the 
  1.4             time limit for temporary partial disability; modifying 
  1.5             the definition of permanent total disability; 
  1.6             eliminating the time limit for requests for 
  1.7             retraining; amending Minnesota Statutes 1996, sections 
  1.8             176.101, subdivisions 1, 2, and 5; and 176.102, 
  1.9             subdivision 11. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 176.101, 
  1.12  subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] (a) For 
  1.14  injury producing temporary total disability, the compensation is 
  1.15  66-2/3 percent of the weekly wage at the time of injury. 
  1.16     (b)  (1) Commencing on October 1, 1995, the maximum weekly 
  1.17  compensation payable is $615 per week. 
  1.18     (2) The workers' compensation advisory council may consider 
  1.19  adjustment increases and make recommendations to the legislature.
  1.20     (c) The minimum weekly compensation payable is $104 per 
  1.21  week or the injured employee's actual weekly wage, whichever is 
  1.22  less.  
  1.23     (d) Temporary total compensation shall be paid during the 
  1.24  period of disability subject to the cessation and recommencement 
  1.25  conditions in paragraphs (e) to (l). 
  1.26     (e) Temporary total disability compensation shall cease 
  1.27  when the employee returns to work.  Except as otherwise provided 
  2.1   in section 176.102, subdivision 11, temporary total disability 
  2.2   compensation may only be recommenced following cessation under 
  2.3   this paragraph, paragraph (h), or paragraph (j) prior to payment 
  2.4   of ~~104~~ 300 weeks of temporary total disability compensation and 
  2.5   only as follows: 
  2.6      (1) if temporary total disability compensation ceased 
  2.7   because the employee returned to work, it may be recommenced if 
  2.8   the employee is laid off or terminated for reasons other than 
  2.9   misconduct within one year after returning to work if the layoff 
  2.10  or termination occurs prior to 90 days after the employee has 
  2.11  reached maximum medical improvement.  Recommenced temporary 
  2.12  total disability compensation under this clause ceases when any 
  2.13  of the cessation events in paragraphs (e) to (l) occurs; or 
  2.14     (2) if temporary total disability compensation ceased 
  2.15  because the employee returned to work or ceased under paragraph 
  2.16  (h) or (j), it may be recommenced if the employee is medically 
  2.17  unable to continue at a job due to the injury.  Where the 
  2.18  employee is medically unable to continue working due to the 
  2.19  injury, temporary total disability compensation may continue 
  2.20  until any of the cessation events in paragraphs (e) to (l) 
  2.21  occurs following recommencement.  If an employee who has not yet 
  2.22  received temporary total disability compensation becomes 
  2.23  medically unable to continue working due to the injury after 
  2.24  reaching maximum medical improvement, temporary total disability 
  2.25  compensation shall commence and shall continue until any of the 
  2.26  events in paragraphs (e) to (l) occurs following commencement.  
  2.27  For purposes of commencement or recommencement under this clause 
  2.28  only, a new period of maximum medical improvement under 
  2.29  paragraph (j) begins when the employee becomes medically unable 
  2.30  to continue working due to the injury.  Temporary total 
  2.31  disability compensation may not be recommenced under this clause 
  2.32  and a new period of maximum medical improvement does not begin 
  2.33  if the employee is not actively employed when the employee 
  2.34  becomes medically unable to work.  All periods of initial and 
  2.35  recommenced temporary total disability compensation are included 
  2.36  in the ~~104-week~~ 300-week limitation specified in paragraph (k).  
  3.1      (f) Temporary total disability compensation shall cease if 
  3.2   the employee withdraws from the labor market.  Temporary total 
  3.3   disability compensation may be recommenced following cessation 
  3.4   under this paragraph only if the employee reenters the labor 
  3.5   market prior to 90 days after the employee reached maximum 
  3.6   medical improvement and prior to payment of ~~104~~ 300 weeks of 
  3.7   temporary total disability compensation.  Once recommenced, 
  3.8   temporary total disability ceases when any of the cessation 
  3.9   events in paragraphs (e) to (l) occurs. 
  3.10     (g) Temporary total disability compensation shall cease if 
  3.11  the total disability ends and the employee fails to diligently 
  3.12  search for appropriate work within the employee's physical 
  3.13  restrictions.  Temporary total disability compensation may be 
  3.14  recommenced following cessation under this paragraph only if the 
  3.15  employee begins diligently searching for appropriate work within 
  3.16  the employee's physical restrictions prior to 90 days after 
  3.17  maximum medical improvement and prior to payment of ~~104~~ 300 
  3.18  weeks of temporary total disability compensation.  Once 
  3.19  recommenced, temporary total disability compensation ceases when 
  3.20  any of the cessation events in paragraphs (e) to (l) occurs. 
  3.21     (h) Temporary total disability compensation shall cease if 
  3.22  the employee has been released to work without any physical 
  3.23  restrictions caused by the work injury. 
  3.24     (i) Temporary total disability compensation shall cease if 
  3.25  the employee refuses an offer of work that is consistent with a 
  3.26  plan of rehabilitation filed with the commissioner which meets 
  3.27  the requirements of section 176.102, subdivision 4, or, if no 
  3.28  plan has been filed, the employee refuses an offer of gainful 
  3.29  employment that the employee can do in the employee's physical 
  3.30  condition.  Once temporary total disability compensation has 
  3.31  ceased under this paragraph, it may not be recommenced. 
  3.32     (j) Temporary total disability compensation shall cease 90 
  3.33  days after the employee has reached maximum medical improvement, 
  3.34  except as provided in section 176.102, subdivision 11, paragraph 
  3.35  (b).  For purposes of this subdivision, the 90-day period after 
  3.36  maximum medical improvement commences on the earlier of:  (1) 
  4.1   the date that the employee receives a written medical report 
  4.2   indicating that the employee has reached maximum medical 
  4.3   improvement; or (2) the date that the employer or insurer serves 
  4.4   the report on the employee and the employee's attorney, if any.  
  4.5   Once temporary total disability compensation has ceased under 
  4.6   this paragraph, it may not be recommenced except if the employee 
  4.7   returns to work and is subsequently medically unable to continue 
  4.8   working as provided in paragraph (e), clause (2). 
  4.9      (k) Temporary total disability compensation shall cease 
  4.10  entirely when ~~104~~ 300 weeks of temporary total disability 
  4.11  compensation have been paid, except as provided in section 
  4.12  176.102, subdivision 11, paragraph (b).  Notwithstanding 
  4.13  anything in this section to the contrary, initial and 
  4.14  recommenced temporary total disability compensation combined 
  4.15  shall not be paid for more than ~~104~~ 300 weeks, regardless of the 
  4.16  number of weeks that have elapsed since the injury, except that 
  4.17  if the employee is in a retraining plan approved under section 
  4.18  176.102, subdivision 11, the ~~104~~ 300 week limitation shall not 
  4.19  apply during the retraining, but is subject to the limitation 
  4.20  before the plan begins and after the plan ends. 
  4.21     (l) Paragraphs (e) to (k) do not limit other grounds under 
  4.22  law to suspend or discontinue temporary total disability 
  4.23  compensation provided under this chapter. 
  4.24     Sec. 2.  Minnesota Statutes 1996, section 176.101, 
  4.25  subdivision 2, is amended to read: 
  4.26     Subd. 2.  [TEMPORARY PARTIAL DISABILITY.] (a) In all cases 
  4.27  of temporary partial disability the compensation shall be 66-2/3 
  4.28  percent of the difference between the weekly wage of the 
  4.29  employee at the time of injury and the wage the employee is able 
  4.30  to earn in the employee's partially disabled condition.  This 
  4.31  compensation shall be paid during the period of disability 
  4.32  except as provided in this section, payment to be made at the 
  4.33  intervals when the wage was payable, as nearly as may be, and 
  4.34  subject to the maximum rate for temporary total compensation.  
  4.35     (b) Temporary partial compensation may be paid only while 
  4.36  the employee is employed, earning less than the employee's 
  5.1   weekly wage at the time of the injury, and the reduced wage the 
  5.2   employee is able to earn in the employee's partially disabled 
  5.3   condition is due to the injury.  Except as provided in section 
  5.4   176.102, subdivision 11, paragraphs (b) and (c), temporary 
  5.5   partial compensation may not be paid for more than ~~225~~ 500 weeks 
  5.6   ~~, or after 450 weeks after the date of injury, whichever occurs~~ 
  5.7   ~~first~~. 
  5.8      (c) Temporary partial compensation must be reduced to the 
  5.9   extent that the wage the employee is able to earn in the 
  5.10  employee's partially disabled condition plus the temporary 
  5.11  partial disability payment otherwise payable under this 
  5.12  subdivision exceeds 500 percent of the statewide average weekly 
  5.13  wage. 
  5.14     Sec. 3.  Minnesota Statutes 1996, section 176.101, 
  5.15  subdivision 5, is amended to read: 
  5.16     Subd. 5.  [DEFINITION.] (a) For purposes of subdivision 4, 
  5.17  "permanent total disability" means only:  
  5.18     (1) the total and permanent loss of the sight of both eyes, 
  5.19  the loss of both arms at the shoulder, the loss of both legs so 
  5.20  close to the hips that no effective artificial members can be 
  5.21  used, complete and permanent paralysis, total and permanent loss 
  5.22  of mental faculties; or 
  5.23     (2) any other injury which totally and permanently 
  5.24  incapacitates the employee from working at an occupation which 
  5.25  brings the employee an income.~~, provided that the employee must~~ 
  5.26  ~~also meet the criteria of one of the following clauses:~~ 
  5.27     ~~(a) the employee has at least a 17 percent permanent~~ 
  5.28  ~~partial disability rating of the whole body;~~ 
  5.29     ~~(b) the employee has a permanent partial disability rating~~ 
  5.30  ~~of the whole body of at least 15 percent and the employee is at~~ 
  5.31  ~~least 50 years old at the time of injury; or~~ 
  5.32     ~~(c) the employee has a permanent partial disability rating~~ 
  5.33  ~~of the whole body of at least 13 percent and the employee is at~~ 
  5.34  ~~least 55 years old at the time of the injury, and has not~~ 
  5.35  ~~completed grade 12 or obtained a GED certificate.~~ 
  5.36     ~~For purposes of this clause, "totally and permanently~~ 
  6.1   ~~incapacitated" means that the employee's physical disability in~~ 
  6.2   ~~combination with any one of clause (a), (b), or (c) causes the~~ 
  6.3   ~~employee to be unable to secure anything more than sporadic~~ 
  6.4   ~~employment resulting in an insubstantial income.  Other factors~~ 
  6.5   ~~not specified in clause (a), (b), or (c), including the~~ 
  6.6   ~~employee's age, education, training and experience, may only be~~ 
  6.7   ~~considered in determining whether an employee is totally and~~ 
  6.8   ~~permanently incapacitated after the employee meets the threshold~~ 
  6.9   ~~criteria of clause (a), (b), or (c).  The employee's age, level~~ 
  6.10  ~~of physical disability, or education may not be considered to~~ 
  6.11  ~~the extent the factor is inconsistent with the disability, age,~~ 
  6.12  ~~and education factors specified in clause (a), (b), or (c).~~ 
  6.13     (b) For purposes of paragraph (a), clause (2), "totally and 
  6.14  permanently incapacitated" means that the employee's physical 
  6.15  disability, in combination with the employee's age, education, 
  6.16  training, and experience, causes the employee to be unable to 
  6.17  secure anything more than sporadic employment resulting in an 
  6.18  insubstantial income. 
  6.19     Sec. 4.  Minnesota Statutes 1996, section 176.102, 
  6.20  subdivision 11, is amended to read: 
  6.21     Subd. 11.  [RETRAINING; COMPENSATION.] (a) Retraining is 
  6.22  limited to 156 weeks.  An employee who has been approved for 
  6.23  retraining may petition the commissioner or compensation judge 
  6.24  for additional compensation not to exceed 25 percent of the 
  6.25  compensation otherwise payable.  If the commissioner or 
  6.26  compensation judge determines that this additional compensation 
  6.27  is warranted due to unusual or unique circumstances of the 
  6.28  employee's retraining plan, the commissioner may award 
  6.29  additional compensation in an amount not to exceed the 
  6.30  employee's request.  This additional compensation shall cease at 
  6.31  any time the commissioner or compensation judge determines the 
  6.32  special circumstances are no longer present.  
  6.33     (b) If the employee is not employed during a retraining 
  6.34  plan that has been specifically approved under this section, 
  6.35  temporary total compensation is payable for up to 90 days after 
  6.36  the end of the retraining plan; except that, payment during the 
  7.1   90-day period is subject to cessation in accordance with section 
  7.2   176.101.  If the employee is employed during the retraining plan 
  7.3   but earning less than at the time of injury, temporary partial 
  7.4   compensation is payable at the rate of 66-2/3 percent of the 
  7.5   difference between the employee's weekly wage at the time of 
  7.6   injury and the weekly wage the employee is able to earn in the 
  7.7   employee's partially disabled condition, subject to the maximum 
  7.8   rate for temporary total compensation.  Temporary partial 
  7.9   compensation is not subject to the 225-week or 450-week 
  7.10  limitations provided by section 176.101, subdivision 2, during 
  7.11  the retraining plan, but is subject to those limitations before 
  7.12  and after the plan. 
  7.13     ~~(c) Any request for retraining shall be filed with the~~ 
  7.14  ~~commissioner before 104 weeks of any combination of temporary~~ 
  7.15  ~~total or temporary partial compensation have been paid.~~  
  7.16  ~~Retraining shall not be available after 104 weeks of any~~ 
  7.17  ~~combination of temporary total or temporary partial compensation~~ 
  7.18  ~~benefits have been paid unless the request for the retraining~~ 
  7.19  ~~has been filed with the commissioner prior to the time the 104~~ 
  7.20  ~~weeks of compensation have been paid.~~ 
  7.21     ~~(d) The employer or insurer must notify the employee in~~ 
  7.22  ~~writing of the 104 week limitation for filing a request for~~ 
  7.23  ~~retraining with the commissioner.  This notice must be given~~ 
  7.24  ~~before 80 weeks of temporary total disability or temporary~~ 
  7.25  ~~partial disability compensation have been paid, regardless of~~ 
  7.26  ~~the number of weeks that have elapsed since the date of injury.~~  
  7.27  ~~If the notice is not given before the 80 weeks, the period of~~ 
  7.28  ~~time within which to file a request for retraining is extended~~ 
  7.29  ~~by the number of days the notice is late, but in no event may a~~ 
  7.30  ~~request be filed later than 225 weeks after any combination of~~ 
  7.31  ~~temporary total disability or temporary partial disability~~ 
  7.32  ~~compensation have been paid.  The commissioner may assess a~~ 
  7.33  ~~penalty of $25 per day that the notice is late, up to a maximum~~ 
  7.34  ~~penalty of $2,000, against an employer or insurer for failure to~~ 
  7.35  ~~provide the notice.  The penalty is payable to the assigned risk~~ 
  7.36  ~~safety account.~~