Alabama Court Strips Total Workers’ Comp Benefits Due to Post-Injury Employment
- The Alabama Court of Civil Appeals recently reversed a $226,000 permanent total disability award, emphasizing that post-injury actions determine workers’ comp eligibility.
- Although a brick mason suffered severe spinal and heel fractures, his subsequent history of manual labor and unemployment certifications proved he could secure gainful employment.
- The court ruled that under state law, claimants must prove an absolute inability to obtain suitable work.
- Consequently, objective employment records outweighed the worker’s testimony regarding chronic pain.
Oklahoma Supreme Court Upholds Workers’ Comp Exclusivity as a Powerful Risk Shield
- In Oklahoma and Kentucky, the “economic realities” test is used to determine if a worker is an employee or an independent contractor for workers’ compensation purposes.
- Courts prioritize employer control and financial dependency over formal contracts or 1099 tax labels.
- Misclassifying workers can lead to significant audit bills, liability for injuries, and costly legal disputes.
- Employers must ensure proper compliance to avoid these risks.
Why DBA Compliance is Non-Negotiable for Workers’ Comp
- Federal Acquisition Regulation clause 52.228-3 requires federal contractors to maintain workers’ compensation insurance, primarily under the Defense Base Act (DBA), for overseas and specific domestic projects.
- This statutory no-fault system provides medical, disability, and survivor benefits while serving as the exclusive remedy for injured employees.
- Prime contractors must ensure subcontractors maintain proper coverage to avoid direct liability for benefits and regulatory penalties.
- Effective compliance requires aligning insurance programs with the contract’s geographic scope and operational risks.