Disclaimer: This document is only intended to be a brief overview of the legislative changes. Please consult the actual legislative text for any questions, as well as your workers' compensation insurance carrier or counsel.  

Effective Date: These changes apply to any injuries occurring on or after July 1, 2017, except for the amendment to Iowa Code Section 85.45 regarding commutations, which would apply to any application filed on or after July 1, 2017, regardless of the date of injury.

Intoxication Defense Burden Shifting

• If the employer shows, at the time of the injury or immediately following the injury, the employee had positive test results reflecting the presence of alcohol or other drug not prescribed (or used appropriately) by an authorized medical practitioner, it shall be presumed the employee was intoxicated at the time of injury and the intoxication was the predominant factor causing the injury.
• What is the change?  The burden of proof will be on the employee to overcome this presumption.
• Impact:  The entire claim could be considered not compensable if the employee does not overcome this presumption.  Employers should review their Post Accident Drug Test programs and make sure their workers' compensation carriers/claim handlers are familiar with it.  Understanding the Post Accident Drug Test Program, consistently applying it, and documenting accordingly will be key for employers to impact the Workers Compensation claim.

Refusal of Suitable Work Requirements for Employees and Employers 

• Work offered at the employer’s principal place of business or established place of operation where the employee had previously worked is presumed to be geographically suitable for an employee whose duties regularly involve travel away from the principal place of employment.
• The employer shall communicate an offer of temporary work to the employee in writing, within a reasonable time frame (undefined). It must include details of lodging, meals and transportation, and advise the employee that if he/she refuses the work the employee must notify the employer in writing with the reasons for the refusal.
• If the employee declines the offer of temporary work on the grounds that the work is not suitable, the employee shall communicate the refusal, along with the reason for the refusal, to the employer in writing within a reasonable time frame (undefined) or at the time the offer of work is declined. Failure to communicate the reason for the refusal in this manner precludes the employee from raising suitability of the as a work defense.
• What is the change?  Offers of modified work within restrictions at a principal operation for employees who regularly travel, must be done in writing.
• Impact:  Great impact to employers and employees within the trucking industries.  Little impact to employers who don’t have traveling employees and would normally offer modified work within restrictions at the principal operation where the injury occurred.  All employers should review their Return To Work Program for accommodating restrictions and work with their workers' compensation carriers/claim handlers to determine if offers need to be made in writing.  Documentation of Return to Work offers will be important so that it can be accurately and timely relayed in a written offer letter.

A Shoulder Injury is a Scheduled Injury Assessed on 400 Week Scale 

• This legislation changes shoulder injuries from an industrial disability analysis to a scheduled member functional disability analysis assessed on a 400-week scale.
• What is the change?  Upper arm and shoulder injuries are no longer considered part of the neck.  Therefore, Industrial Disability ratings (ratings above and beyond PPD) will not apply to shoulder injuries. Also, a shoulder injury will now be assessed at a 400 week scale instead of the previous 250 week scale for a shoulder or 500 week scale for a neck.
• Impact:  Permanent Partial Disability (PPD) payout for a shoulder injury will be less.  Currently PPD for a shoulder is paid at the 500 weeks scale for a neck; it will switch to a 400 weeks scale.  In addition, no Industrial Disability ratings will be paid.

 Determining Extent of Industrial Disability (BAW) Changes 

• The extent of industrial disability shall take into account the permanent partial disability of the employee and the number of years in the future it was reasonably anticipated the employee would work at the time of injury.
• Employees who return to work or are offered work for which the employee receives or would receive the same or greater salary, wages, or earnings the employee received at the time of injury, shall be compensated based only upon the employee’s functional disability resulting from the injury, and not in relation to the employee’s earning capacity.
• What is the change?   Injuries to the body as a whole (BAW) such as neck, back and head that have incurred permanent restrictions will no longer be entitled to an Industrial Disability rating if an employer provides work within the restrictions.
• Impact:  Incentive for employers to supply work within permanent restrictions.  PPD would still be paid but not any additional Industrial Disability.

 Scheduled Member PPD Awards Limited to AMA Rating 

• When determining functional disability, the extent of loss or percentage of permanent impairment shall be determined solely by utilizing the AMA Guides to the Evaluation of Permanent Impairment, and lay testimony or agency expertise shall not be utilized in determining loss or percentage of permanent impairment.
• What is the change?  Injuries to scheduled body parts (anything not considered BAW) will be paid strictly based on the rating utilizing AMA Guides.  An employee can no longer be awarded an amount above and beyond the AMA rating.
• Impact:  Eliminates other factors being considered to increase a PPD award above and beyond the amount of the rating.
 

Permanent Total Disability Limitations Based on Outside Earnings/Benefits 

• No PTD if the employee is receiving other payments which are equal to or greater than fifty percent of the statewide AWW (Average Weekly Wage) from either the gross earnings from any employer or payments for current services from any source.
• An employee shall not receive any compensation for PPD benefits if the employee is receiving compensation for PTD (permanent total disability).
• No PTD if the employee is receiving unemployment benefits.
• What is the change?  No double dipping for permanent total disability payments.
• Impact:  Overturns a recent law that allowed for double recovery provisions.

Successive Disabilities Revamped 

• An employer is liable for compensating only that portion of an employee’s disability that arises out of and in the course of the employee’s employment with the employer and relates to the injury.
• An employer is not liable for compensating an employee’s preexisting disability arising out of and in the course of employment from a prior injury that has already been compensated by the employer.
• What is the change?  No “fresh start” rule. Apportionment now applies.
• Impact:  Prior PPD ratings will now be applied to a new injury, thereby only awarding PPD payments to the rating apportioned only to the current injury.

Additional Changes with Limited Impact to Employers.  Most offer clarification of statutory language or impact Workers' Compensation Carriers:

No Private Cause of Action Outside Workers’ Compensation 
• Confirms Iowa Code section 85.18 does not create a private cause of action against employers outside of Iowa’s workers’ compensation jurisdiction.

Date of Injury Clarification 
• Defines the “date of the occurrence of the injury” to be the date the employee knew or should have known the injury was work-related, which applies to the 90 notice requirement for employees.
• Confirms the statute of limitations runs from “date of the occurrence of the injury.”

Commencement Date for Paying PPD Extended 
• Changes the date for paying compensation for permanent partial disability. PPD will be paid when maximum medical improvement has been reached and the amount of PPD can be determined by use of the AMA Guides.

Credit for Excess and Overpayments Payments 
• Any excess TTD, HP, TPD benefits paid by the employer shall be credited against liability of the employer for any future weekly benefits due for an injury to that employee.
• Any excess/overpayment of permanency benefits paid by the employer shall be credited against the liability of the employer for any current or subsequent injury to the same employee.

IME Examination Changes 
• Any employee refusing to submit to an IME examination shall forfeit the employee’s right to compensation for the period of refusal.
• An employer is only liable for the costs of an IME if the injury is compensable.
• The cost for reimbursing an employee fees of an IME is limited to the typical fee charged by a medical provider to perform an impairment rating in the location where the IME is performed.

Changes to Full and Partial Commutations 
• Benefits cannot be commuted to a present day lump sum without written consent of all parties to the proposed full or partial commutation.
• The parties can agree to a full or partial commutation with open medical.

New Career Vocational Training and Educational Program for Shoulder Injuries Preventing Return to Work 
• Employees who sustain a shoulder injury and cannot return to work because of the injury shall be evaluated by the department of workforce development regarding career opportunities in specific fields aligning with postsecondary career and technical education programs allowing for accommodation of the employee’s disability, to determine if the employee would benefit (i.e. allow the employee to return to the workforce) from the vocational training and education program offered through an area community college.
• If the employee does not enroll in the program within 6 months of referral, the employee is no longer eligible for the program.
• The employee is entitled to financial support from the employer for participation in an amount not to exceed $15,000, to be used for the payment of fees and required supplies. The community college is to bill the employer directly for tuition and fees, and the employer is also responsible for payment of necessary supplies, upon provision of proper documentation.

Jurisdiction Limited to Employees Regularly Working In Iowa 
• The employer must have a place of business in this state and the employee must regularly work at or from that place of business in Iowa to be entitled to Iowa Workers’ Compensation benefits.

Judicial Review Bonding Issues 
• A timely petition for judicial review shall stay execution or enforcement of a decision or order of the commissioner if the party seeking judicial review posts a bond securing any compensation award pursuant to the decision or order with the district court within 30 days of filing the petition, in a reasonable amount as fixed and approved by the court.

Attorney Fee Limitations 
• An attorney shall not recover fees for legal services based on the amount of compensation voluntarily paid or agreed to be paid to an employee for temporary or permanent disability.
• An attorney shall only recover a fee based on the amount of compensation the attorney demonstrates would not have been paid to the employee but for the efforts of the attorney. 

Change in Prior 10% Interest on Judgments 
• Interest due shall accrue from the date each compensation payment is due at an annual rate equal to the one-year treasury constant maturity published by the federal reserve in the most recent H15 prior to the date each compensation payment is due plus two percent.