Massachusetts Injury Lawyers Blog
In Massachusetts, the Workers’ Compensation Trust Fund (WCTF) is a statutory entity that reimburses insurers for some workers’ compensation benefits paid pursuant to Massachusetts’ Workers’ Compensation law. This includes payments made to previously injured employees who suffer further work-related injuries pursuant to demands that employers pay employees who sustain injuries while working benefits for their harm. Only certain employers are eligible for reimbursement, though, as discussed in a recent Massachusetts ruling. If you were injured while on the job, it is important to understand your rights, and you should meet with a Massachusetts Workers’ Compensation lawyer promptly.
Factual History and Procedural Background
It is reported that the revenues for the WCTF come from assessments of employers collected by their insurers based on premiums. However, some employers can opt out of these assessments by self-insuring and filing a notice of nonparticipation, which makes them ineligible for reimbursement from the WCTF.
It is alleged that the plaintiff, an insurer, had stopped issuing new policies in Massachusetts but continued to service claims under policies it previously issued during a “run-off period.” The insurer requested second-injury reimbursements from the WCTF, which were initially approved. However, following a 2014 decision by the reviewing board of the Department of Industrial Accidents, which denied reimbursement to another insurer in a similar run-off period, the WCTF began denying the plaintiff’s requests. The reviewing board upheld the denial, leading to the plaintiff’s appeal.
Reimbursement Under the Workers’ Compensation WCTF
The court reviewed the reviewing board’s decision, focusing on the statutory interpretation of the provisions governing the WCTF. The court emphasized that while the reviewing board’s decisions are generally afforded substantial deference, such deference does not override the plain language of the statute.
The court found that the statute clearly differentiated between employers who opt out of assessments and insurers who enter a run-off period. Employers that choose not to pay assessments deprive the WCTF of revenue and are ineligible for reimbursement. In contrast, insurers in a run-off period do not deprive the fund of revenue since the employers they insured continue to pay assessments through their new insurers.
The court concluded that the statutory language did not support the reviewing board’s interpretation that barred the plaintiff from reimbursement. The court also noted that allowing insurers in run-off periods to receive reimbursements aligns with public policy goals of encouraging the hiring of persons with disabilities by reducing employers’ premiums.
Consequently, the court reversed the reviewing board’s decision, departing from its previous ruling in a similar case, and ruled that the plaintiff insurer was eligible for reimbursement from the WCTF.
Speak to a Seasoned Massachusetts Workers’ Compensation Lawyer
Workers injured on the job are entitled to workers’ compensation, but employers may try to deny the claim by disputing the injury’s cause. If you were hurt at work, it is important to discuss your case with a lawyer as soon as possible. Attorney James K. Meehan is a seasoned Massachusetts workers’ compensation lawyer who can provide you with the guidance needed to navigate your case effectively. Contact Attorney Meehan at 508-822-6600 or via our online contact form to set up a private consultation.