Paying for Care ‘Doesn’t Waive Right to Contest Claim’

Alabama Court of Civil Appeals

 

Early Medical Care Doesn’t Waive Employers’ Right to Contest Claims

  • The Alabama Court of Civil Appeals ruled on July 17 that Waterville USA, Inc. did not waive its right to contest a workers’ compensation claim by voluntarily paying for a worker’s medical care, even though it had disputed liability from the outset of her February 2025 lawsuit over a 2021 workplace incident.
  • After the worker’s treating physician recommended a second-opinion consultation, the employer declined to book it, arguing no court could order additional treatment before a trial determined the injury was compensable; the trial court ordered the appointment anyway, and Waterville challenged that order via a writ of mandamus.
  • The appeals court agreed with the employer, holding that a judge cannot order an employer to fund treatment through a pre-trial motion — only through a formal judgment on the pleadings, summary judgment or an evidentiary hearing — none of which had occurred in this case.
  • The ruling clarifies that under Alabama law, medical payments made before any agreement or award are considered “advance payments” rather than an admission of liability, meaning employers can provide early care without forfeiting their ability to contest the claim later; the underlying compensation claim remains unresolved.

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New Jersey Wage Adopts ABC Independent Contractor Rule

  • New Jersey regulations formally adopting the “ABC test” for determining independent contractor versus employee status took effect June 1 but will not become operative until Oct. 1.
  • The final regulations incorporate some prior case law conclusions, such as finding that employers don’t exercise control merely by ensuring compliance with federal, state, and local laws and regulations. The final rules dropped industry-specific examples of what counts as work “outside the usual course of business” that had appeared in the proposed rules that were issued in May 2025.
  • The changes were made to a number of state statutes including the Wage Payment Law, Wage and Hour Law, Earned Sick Leave Law, and Call Center Jobs Act.

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