
Revised 4/26/05
| # | Section | Topic | Proposal | Rationale | Status |
|---|---|---|---|---|---|
| 1. | 102.01 (f) | Temporary Help Agency |
Amend
§102.01(f) as follows: "Temporary help agency" means an employer who,
on a temporary basis, places its employee with |
The definition of “temporary help agency” is amended to delete the reference to employee leasing. Another definition for employee leasing organization and professional employer organization is created by the proposal to create s. 102.01 (fg). | 2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 2. | 102.01(fg) | Employee Leasing Organization & Professional Employer Organization |
1. Has the right to hire and terminate the employees who perform services for the client and to reassign the employees to other clients; 2. Sets the rate of pay of the employees, which responsibility may be shared with the client, whether or not through negotiations; 3. Has the obligation to and pays the employees from its own accounts; 4. Has a general right of direction and control over the employees, including corporate officers, which right may be shared with the client to the degree necessary to allow the client to conduct its business, meet any fiduciary responsibility, or comply with any applicable regulatory or statutory requirements; 5. Assumes responsibility for the worker’s compensation insurance coverage of the employees, files all required reports, and otherwise complies with all of the provisions of this chapter that are applicable to employers; 6. Has the obligation to establish, fund, and administer employee benefit plans for the employees; and 7. Provides notice of the professional employer or employee leasing arrangement to the employees. (b) To be recognized as a professional employer organization or employee leasing organization for the purposes of this chapter, the organization or person must provide employer services for multiple clients the majority of which are not under common ownership, management or control of the professional employer organization or employee leasing organization itself, other than through the contractual terms of the professional employer or employee leasing agreements. |
“Employee leasing organization” and “professional employer organization”
are defined the same for worker’s compensation purposes by this
amendment. These organizations are much more similar than temporary help
agencies. Creating separate definitions for temporary help agency and
professional employer organization/employee leasing organization will
more accurately reflect the nature of the businesses in which these
organizations are engaged. |
2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 3. | 102.04(2m) | Temporary Help Agency as the employer liable for all payment under Ch. 102 |
Amend §102.04(2m) as follows:
A temporary help agency for the purpose of administration of Chapter
102 is the employer of an employee whom the temporary help agency
has placed with |
This subsection is amended to delete the reference to employee leasing. Employees of professional employer organizations and employee leasing organizations are covered under the proposed s. 102.04 (2n) in the next section. | 2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 4. | 102.04(2n) | Professional Employee Organization & Employee Leasing Organization as the employer liable for all payments under Ch. 102. | Create §102.04(2n) as follows:
A professional employer organization or an employee leasing organization
for the purpose of administration of Chapter 102 is the employer of an
employee whom |
This
subsection is created to specify that professional employer
organizations and employee leasing organizations are the liable employer
for worker’s compensation liability for all payments required by Chapter
102, Wis. Stats. |
2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 5. | 102.31(2m) | Professional Employer Organizations, Employee Leasing Organizations and Leasing Agreements. |
Create §102.31(2m) as follows: (a)
|
This proposal is intended to reduce the confusion about worker’s
compensation insurance coverage for professional employer organizations
and employee leasing organizations. Currently, the Department is not
notified when a leasing contract is cancelled and the leased employees
are returned by the leasing company to the client. When an insurance policy is cancelled, the insurance carrier must file a cancellation with the Wisconsin Compensation Rating Bureau (WCRB) and the cancellation is not effective until 30 days after it is received by the WCRB. This allows the Department to follow-up on the cancellation with an employer to ensure they have the required worker’s compensation insurance. However, under current law, when a leasing company voids or cancels a contract, the law does not require the leasing company to notify the Department or to file any information regarding a contract cancellation with the WCRB. The Department is not informed and therefore has no way of tracking whether or not an employer who has “employees” returned to them by the leasing company, has the required worker’s compensation insurance policy in force. This has resulted in uninsured employer penalties and Uninsured Employers Fund claims. The
proposal requires |
2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 6. | 102.04 (2s) | Professional Employment Organization & Employee Leasing Organization. Continued WC insurance coverage. |
Create §102.31 (2s) as follows:
|
|
2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 7. | 102.29 (7m) | Limits on Third Party Actions. | Create §102.29(7m) as follows: No employee who is leased by his or her employer to another employer and who makes a claim for compensation under this chapter may make a claim or maintain an action in tort against the employer who accepted the leased employee’s services. | Employees of professional employer organizations and employee leasing companies may not make claims in tort against the employer with whom they are placed. | 2/21/05 introduced at WCAC mtg, 4/13/05 tabled. |
| 8. | 102.13(2)(c) or 80.02(2)(e) 4 |
Final Treating Practitioners Report. | Create §102.13(2)(c) as follows: Practitioners may not require pre-payment for the preparation and completion of a final treating practitioner’s report as the department may require by rule. Any dispute over the amount charged by the practitioner for the report may be submitted for resolution under s. 102.16 (2). | This proposal is to address the situation of treating practitioners charging unreasonable amounts for providing a final treating practitioner’s report required by §DWD 80.02(2)(e)4 of the Wisconsin Administrative Code. The proposal does not prohibit a practitioner from charging for the final report but only prohibits pre-payment. If there is a dispute about the amount charged for a report, the practitioner may submit a reasonableness of fee dispute under s. 102.16(2), Wis. Stats. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 9. | 102.17(9) | Disclosure of Evidence 15 Days Before Hearings | Create §102.17(9) as follows: Unless otherwise agreed to by all parties, a party must file and serve with the department and all other interested parties, all medical reports, documents, names of witnesses in addition to any other materials, including videotapes, that the party intends to offer into evidence at a hearing, at least 15 days before the hearing, unless the department is satisfied there is good cause for the failure to file and serve. |
This proposal will require the parties to file with the department and all other parties medical reports, documents and other material the party intends to offer as evidence at a hearing at least 15 days before the hearing date. The purpose of this proposal is to encourage the parties to litigated cases to be prepared to proceed to hearing and to avoid surprise evidence disclosed for the first time at the hearing. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC disagreed. |
| 10. | 102.32(6)(b) | Payment for Permanent Partial Disability (PPD) |
Amend §102.32(6)(b) as follows:
(b) Subject to par. (d), if the employer or the employer’s insurer concedes liability for an injury that results in permanent disability and if the extent of permanent disability can be determined based on a minimum permanent disability rating promulgated by the department by rule, compensation for permanent disability shall begin within 30 days after the earlier of the end of the employee’s healing period or suspension of temporary disability due to the employee’s return to work. |
This proposal is to correct a situation where the employee is still in the healing period, and has returned to work earning wages, but is not eligible to begin receiving payments for PPD. Under this proposal an employee who is still in the healing period and has returned to work is eligible to receive payments for PPD. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 11. | 102.32(6m) | Advance Payments of Permanent Partial Disability (PPD) and Death Benefits. |
Amend §102.32(6m) as follows:
(6m) The department may direct an advance on a payment of unaccrued compensation for permanent disability or death benefits if the department determines that advance payment is in the best interest of the injured employee or the employee’s dependents. In directing the advance, the department shall give the employer or the employer’s insurer an interest credit against its liability. The credit shall be computed at 7%. An employee is limited to no more than three advance payments per calendar year. |
Under this proposal employees will be limited to three (3) advancements per year. This proposal is being made because there are a significant number of employees who submit advancement on a monthly basis. Handling advancements is time consuming for department staff. With staff reductions mandated by budgetary concerns, it is necessary to limit the number of advancement from employees. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 12. | 102.33(2)(b)7 | Disclosure of Confidential Information. |
Create
§102.33(2)(b)7 as follows:
7. The
department in its discretion may release confidential information to
government agencies, educational institutions and non-profit research
organizations for purposes of research. |
Under
this proposal, the department is authorized to release confidential
information to government agencies, educational institutions and
non-profit research organizations.
|
2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed but requested amendment. |
| 13. | 102. 31(3) | Penalties |
Amend
§102.31(3) as follows:
(3) The department may examine from time to time the books and records of any insurer insuring liability or compensation for an employer in this state. The department may require an insurer to designate one mailing address for use by the department and to respond to correspondence from the department within 30 days. Any insurer that refuses or fails to answer correspondence from the department or allow the department to examine its books and records is subject to enforcement proceedings under s. 601.64 and penalties under s. 102.35 (1) |
Under current law the only enforcement tool available to the department for failure to answer correspondence is under s. 601.64, Wis. Stats., through the Office of the Commissioner of Insurance (OCI). This proposed amendment will add the monetary penalties under s. 102.35 (1), Wis. Stats., as an incentive and sanction for failure to respond to correspondence from the department. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC disagreed. |
| 14. | 102.35(1) | Penalties |
Amend
§102.35(1) as follows:
1)
Every employer and every insurance company that fails to keep the
records or to make the reports required by this chapter or that
knowingly falsifies such records or makes false reports or fails to
respond to correspondence from the department as required under s.
102.31 (3) shall forfeit to the state not less than $ |
Under the current law the only enforcement tool available to the department for failure to answer correspondence is through the Office of the Commissioner of Insurance (OCI) under s. 601.64. The proposed amendment will add monetary penalties under s. 102.35 (1) as another enforcement tool to referrals to OCI for missing reports and for failure to respond to department correspondence. The proposed amendment also increases the minimum and maximum forfeiture penalty amounts provided for in s. 102.35 (1). The forfeiture amounts have not been changed since 1931. The OCI as well as insurance carriers have recommended that the department not use the enforcement proceedings under s. 601.64 for failure to submit required reports and correspondence. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC disagreed. |
| 15. | 102.35(1)(b) | Interest on Penalties |
Renumber
§102.35(1) to 102.35(1)(a) and Create
§102.35(1)(b)
as follows: (b) Interest shall accrue on amounts for forfeitures under sub. (a) not paid within 90 days after billing at a rate of 1% per month. |
As an incentive to pay on time, the proposed amendment will add interest at a rate of 1% per month on any unpaid forfeitures issued under s. 102.35(1) that are not paid within 90 days. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed but amendment requested. |
| 16. | 102.33(2)(b) | Department forms and records; public access |
Amend §102.33(2)(b) as follows:
(b) Notwithstanding par. (a), a record maintained by the department or the commission that reveals the identity of an employee who claims worker’s compensation benefits, the nature of the employee’s claimed injury, the employee’s past or present medical condition, the extent of the employee’s disability, the amount, type or duration of benefits paid to the employee or any financial information provided to the department by a self-insured employer or by an applicant for exemption under s. 102.28(2)(b) is confidential and not open to public inspection or copying under s. 19.35(1). The department or the commission may deny a request made under s. 19.35(1) or, subject to s. 102.17 (2m) and (2s), refuse to honor a subpoena issued by an attorney of record in a civil or criminal action or special proceeding to inspect and copy a record that is confidential under this paragraph, unless one of the following applies: 1. The requester is the employee who is the subject of the record or an attorney or authorized agent of an employee who is the subject of a record shall provide a written authorization for inspection and copying from the employee if requested by the department or the commission. 2. The record that is requested contains confidential information concerning a worker’s compensation claim and the requester is an insurance carrier or employer that is a party to any worker’s compensation claim involving the same employee or an attorney or authorized agent of that insurance carrier or employer, except that the department or the commission is not required to do a random search of its records and may require the requester to provide the approximate date of the injury and any other relevant information that would assist the department in finding the record requested. An attorney or authorized agent of an insurance carrier or employer that is a party to an employee’s worker’s compensation claim shall provide a written authorization for inspection and copying from the insurance carrier or employer if requested by the department or the commission. 4. A court of competent jurisdiction in this state orders the department or the commission to release the record. (c) Notwithstanding par. (a), a record maintained by the department or the commission that contains employer or insurer information obtained from the Wisconsin compensation rating bureau under s. 102.31 (8) or 626.32 (1)(a) is confidential and not open to public inspection or copying under s. 19.35(1) unless the Wisconsin compensation rating bureau authorizes public inspection of copying of that information. |
This amendment is proposed by the Labor and Industry Review Commission. The reasons for maintaining the confidentiality of worker’s compensation files are just as valid at the Commission level as at the Department. A somewhat parallel confidentiality provision for unemployment insurance records appears at Wis. Stat. §108.14(7)(a), and it covers both the department and the Commission. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 17. | 102.75(5) | Interest on Administrative Expenses |
Create
§102.75(5) as follows:
(5) Interest shall accrue on amounts for assessments under par. (2) not paid within 90 days after billing at a rate of 1% per month. The interest shall be paid to the fund established by s. 102.65. |
As an incentive to pay on time, this proposed amendment will add interest at a rate of 1% per month on any unpaid assessments that are not paid within 90 days. | 2/21/05 introduced at WCAC mtg,4/13/05 WCAC agreed but amendment requested. |
| 18. | 80.03(1)(d) | Compromise Agreements |
Amend §DWD
80.03(1)(d) as follows:
(d) No
compromise agreement may provide for a lump sum payment of more than the
incurred medical expenses plus sums accrued as compensation or death
benefits to the date of the agreement and $ |
The proposed amendment increased the amount of additional payment in addition to the accrued benefits to be paid to an employee pursuant to a compromise agreement, from $5,000 to $10,000. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed |
| 19. | 80.03(1)(g) | Compromise Agreements |
Amend §DWD
80.03(1)(g) as follows:
(g) All written compromise agreements submitted to
the department shall contain the following: The
employee has the right to petition the department of |
The proposed amendment does not involve any substantive change to this subsection. The purpose of the amendment is only to specify the current name of the department. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 20. | 80.15 | Payments after an order | Repeal §DWD 80.15. | This administrative code provision mirrors the language in Wis. Stat. §102.18(1) (e), prior to the amendment of the statute effective March 30, 2004. Therefore the administrative code provision is outdated and no longer needed. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 21. | 80.39(1) | Advance payment of unaccrued compensation |
Amend §DWD
80.39(1) as follows:
(1) The department may order partial or full payment of unaccrued compensation to an employee or his or her dependents pursuant to s. 102.32(6m), Stats., upon consideration of the following factors: |
This proposed amendment updates the rule to coincide with the current statutory reference. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 22. | 80.49(2), (7) (b) & (8) | Vocational Rehabilitation Training |
Amend the rule as follows:
(2) ELIGIBILITY. The
determination of eligibility for vocational rehabilitation training and
whether a person is a suitable subject for training is the
responsibility of the |
These sections refer to the Department of Health and Family Services. The proposed amendments delete the reference to this department and substitute the Division of Vocational Rehabilitation. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 23. | 80.51(4) | Computation of Weekly Wage |
Amend §DWD
80.51(4) as follows:
(4) The
|
The former law provided for a 30 hour workweek for part-time employees who were part of a class. The proposed amendment is to reflect the current law setting a 24-hour minimum workweek for part-time employees. | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 24. | 80.72(2)(i) | Health Service Fee Dispute Resolution Process |
Amend §DWD80.72(2)(i) as follows:
(i)
“Formula amount” means the mean fee for a procedure plus
1. |
2003 Wis. Act 144, effective March 30, 2004, reduced the standard deviations for the formula amount from 1.5 to 1.4. The proposed amendment will make the standard deviations defined in the formula amount the same as currently required by s. 102.16(2) (d). | 2/21/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 25. | 80.50 (1)(a), (2) & (3) | Computation of Permanent Disabilities |
Amend §DWD80.50 (1)(a), (2) and (3) as follows: (1)(a) Such a deduction shall not include the multiple injury factors under s. 102.53, Stats. and the dominant hand increase under s. 102.54, Stats.; and (2) The number of weeks attributable to scheduled disabilities shall be deducted from 1,000 weeks before computing the number of weeks due for a non-scheduled disability resulting from the same injury. This deduction shall not include multiple injury factors under s. 102.53, Stats. and the dominant hand increase under s. 102.54, Stats. (3) Multiple injury factors under s. 102.53, Stats. and the dominant hand increase under s. 102.54, Stats., do not apply to compensation for disfigurement under s. 102.56, Stats. |
This proposed amendment updates the rule to include reference to increased PPD benefits for injuries to the dominant hand. | 3/22/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 26. | 80.68(1) & (3) | Payment of Benefits from Second Injury Fund |
Amend §DWD80.68 (1) and (3) as follows:
(1) Payment of benefits under s. 102.59, Stats., shall initially be made to the individual entitled to the benefits at such time as payments of primary compensation by the employer cease to be made or would have been made had there been no payment under s. 102.32 (6m), Stat., unless the preexisting disability and the disability for which primary compensation is being paid combine to result in permanent total disability. (3) Payments under s. 102.59, Stats., shall be on a periodic basis but subject to ss. 102.32 (6m) and (7), Stats. |
This proposed amendment updates the rule to coincide with the current statutory reference. | 3/22/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 27. | 80.72 (2) (L) | Health Cost Fee Dispute Resolution Process |
Amend §DWD80.72(2)(L) as follows:
(L) “Provider” or “health service provider” includes a physician, podiatrist, psychologist, optometrist, chiropractor, dentist, physician’s assistant, advanced practice nurse prescriber, therapist, medical technician, or hospital. |
This proposed amendment updates the rule to include advanced practice nurse prescribers (APNPs). APNPs were added as a choice of treating practitioner under Wis. Stat. §102.42(2) effective March 30, 2004. | 3/22/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 28. | 80.73 (2) (d | Health Service Necessity of Treatment Dispute Resolution Process |
Amend §DWD80.73(2)(d) as follows:
(d) “Provider” includes a hospital, physician, psychologist, chiropractor, podiatrist, physician’s assistant, advanced practice nurse prescriber, or dentist, or another licensed medical practitioner who provides treatment ordered by a physician, psychologist, chiropractor, podiatrist, physician’s assistant, advanced practice nurse prescriber, whose order of treatment is subject to review. |
This proposed amendment updates the rule to include physician’s assistants (PAs) and advanced practice nurse prescribers (APNPs). PAs and APNPs were added as a choice of treating practitioner under Wis. Stat. §102.42(2) effective March 30, 2004. | 3/22/05 introduced at WCAC mtg, 4/13/05 WCAC agreed. |
| 29. | 102.17(1)(d) | Certified Medical and Vocational Reports |
Create §102.17(1)(d)4. as follows:
4. Reports and records admitted or received into evidence under this section constitute substantial evidence as to the matter contained in those reports and records within the meaning of 102.23(6) |
This proposed subsection clarifies that medical and vocational evidence in the form of certified reports is admissible at hearing and may be relied on by the department in determining liability for benefits without the necessity of the expert appearing at hearing. This proposal is in response to the recent Wisconsin Supreme Court decision in Gehin v. Wisconsin Group Ins. Board, No. 03-0226 (Wis. Feb. 23, 2005). | 3/22/05 introduced at WCAC mtg, 4/13/05 WCAC agreed but amendment requested. |
| 30. | 102.17(1)(h) | Certified Reports by Industrial Safety Specialists |
Amend §102.17(1)(h) as follows:
(h) The contents of certified reports of investigation, made by industrial safety specialists who are employed, contracted, or otherwise secured by the department and available for cross-examination, served upon the parties 15 days prior to the hearing, shall constitute prima facie evidence as to the matter contained in those reports. Reports and records admitted or received into evidence under this section constitute substantial evidence as to the matter contained in those reports and records within the meaning of 102.23(6). |
This proposed amendment clarifies that certified reports by industrial safety specialists are admissible at hearing and may be relied on by the department in determining liability for benefits without the necessity of the expert appearing at hearing. This proposal is in response to the recent Wisconsin Supreme Court decision in Gehin v. Wisconsin Group Ins. Board, No. 03-0226 (Wis. Feb. 23, 2005). | 3/22/05 introduced at WCAC mtg, 4/13/05 WCAC agreed but amendment requested. |
| 31. | 102.42(2)(b) | Incidental compensation - mileage reimbursement |
Amend §102.42(2)(b) as follows:
(b) The employer is not liable for the expense of unreasonable travel to obtain treatment. The employer shall pay reasonable travel to obtain medical treatment at the rate set by the department of administration for mileage reimbursement for state employees. |
This amendment was requested by the WCAC. It codifies the department’s policy (based on custom and tradition) that injured workers receive mileage reimbursement at the same rate as state employees. | |
| 32. | 102.61(1) | Indemnity under rehabilitation - travel expenses |
Amend §102.61(1) as follows:
(1) Subject to subs. (1g) and (1m), an employee who is entitled to receive and has received compensation under this chapter, and who is entitled to and is receiving instructions under 29 USC 701 to 797b, as administered by the state in which the employee resides or in which the employee resided at the time of becoming physically disabled, shall, in addition to other indemnity, be paid the actual and necessary expenses of travel at the rate set by the department of administration for mileage reimbursement for state employees, and, if the employee receives instructions elsewhere than at the place of residence, the actual and necessary costs of maintenance, during rehabilitation, subject to the conditions and limitations specified in sub. (1r). |
This amendment was requested by the WCAC. It codifies the department’s policy (based on custom and tradition) that injured workers receive mileage reimbursement at the same rate as state employees. | |
| 33. | 102.32(6)(c) | Payment for Permanent Partial Disability |
Amend §102.32(6)(c) as follows:
(c)
Subject to par. (d), if the employer or the employer’s insurer concedes
liability for an injury that results in permanent disability, but the
extent of the permanent disability cannot be determined without a
permanent disability rating, compensation for permanent disability shall
begin within 30 days after the earlier of the date the employer
or the employer’s insurer has receive |
This proposal clarifies that permanent partial disability benefits are to begin within 30 days after receipt of a medical report rating permanency or suspension of temporary disability benefits due to return to work. |