Breaking Down the Second Circuit’s Latest Workers’ Comp Decision

Proposed Bill Prevents Employers from Forcing Concurrent Leave for Workplace Injuries

  • Vermont’s House Bill 459 proposes a ban on large employers forcing the simultaneous use of paid family leave during active workers’ compensation claims. 
  • Under existing policy, employees often exhaust their protected leave benefits, leaving them without coverage for future, unrelated family emergencies or medical needs. 
  • Proponents argue this change protects worker security, while debate continues over the potential administrative burden on businesses.

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Court Denies Workers’ Comp Reimbursement for Medical Marijuana

  • The Second Circuit Court of Appeals ruled that federal workers’ compensation does not cover the cost of prescribed medical marijuana, denying reimbursement for a permanently disabled resident. 
  • The petitioner sought compensation for cannabis products under the Longshore and Harbor Workers’ Compensation Act. 
  • Because marijuana remains a Schedule I substance under federal law, the court held it has no recognized medical use. 
  • Consequently, the drug cannot be considered a “reasonable and necessary” expense for federal reimbursement.

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NJ Settlement Highlights Misclassification Risks for Workers’ Comp

  • New Jersey’s $7 million settlement with PDX North underscores the critical importance of proper worker classification to avoid violating workers’ compensation laws. 
  • Misclassifying drivers as independent contractors allowed the company to evade mandatory contributions to essential state funds. 
  • This case reinforces the strict “ABC test” used to determine eligibility for employee protections and benefits. 
  • It serves as a significant warning for employers regarding compliance, liability, and the severe penalties associated with misclassification.