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Are Penalty Benefits Awarded Too Often in Iowa?

October 9, 2007

In recent years, attorneys representing injured employees have asserted a seemingly increasing number of penalty benefit claims in worker's compensation cases. It also seems as though penalty benefit awards have been made on an incresingly frequent basis by the Iowa Workers' Compensation Commission. This increasingly frequent litigation and awards likely were the result of a string of cases from the Iowa Supreme Court that seemed to encourage and command penalty benefits in many cases. However, the Iowa Supreme Court now appears to be saying that these penalty benefit claims and awards have run a astray of the statutory langauge and basis. It seems as though the Court is now attempting to inject some reason and restore some reservation to the award of penalty benefits. In a decision issued October 5, 2007, the Iowa Supreme Court appears to be taking a practical and reserved approach to the award of penalty benefits in Iowa.

Posted by William H. Grell on October 9, 2007 6:27 PM  |  Permalink | Comments (0)

Do Employers Have the Right to Appeal Any Longer?

October 26, 2007

The Iowa Workers' Compensation Commissioner recently clarified when and how an employer can forego payment of an Arbitration Decision during intra-agency appeal. In order to avoid an award of penalty benefits, the Workers' Compensation Commisisoner requires that the employer be able to prove that it has a reasonable expectation of reversal by the Commissioner. In my mind, this standard is almost impossible. This leaves employers in a quandary. The employer will either be forced to pay the accrued benefits and waive any entitlement to reimbursement of those even if they were never owed. Or, the employer can appeal the decision, decline to pay the benefits, and pay a likely 50% penalty on all accrued benefits if the Commissioner does not reverse the decison on appeal. This is an issue that needs resolution and I invite a spirited debate from all parties as to how to rectify what seems to me to be a whittling away of the employer's right to appeal.

Posted by William H. Grell on October 26, 2007 1:42 PM  |  Permalink | Comments (0)

Employers Beware of the Alternate Medical Care Hearing

October 31, 2007

Rarely in the State of Iowa does the Iowa Supreme Court address alternate medical care proceedings under Iowa's Workers' Compensation Statute. However, in the past year, the Court has addressed the issue twice. Those two recent decisions create important ramifications for claimants and employers. The purpose of this article is to explain the recent decisions, the ramifications of those decisions, and to provide some practical guidance to employers and insurance carriers faced with alternate medical care petitions.

Posted by William H. Grell on October 31, 2007 8:17 AM  |  Permalink | Comments (0)