02/14/2024 01:30 PM Senate LABOR & COMMERCE

           SB 206-WORKERS' COMP. STAY-AT-WORK PROGRAM                                                                       
                                                                                                                              
2:02:46 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SENATE  BILL  NO.  206  "An  Act  relating  to                                                               
workers'  compensation  reemployment   benefits;  establishing  a                                                               
workers' compensation stay-at-work program;  and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
2:03:11 PM                                                                                                                    
SENATOR ELVI GRAY-JACKSON, District  G, Alaska State Legislature,                                                               
Juneau, Alaska,  sponsor of SB  206, introduced SB 206.  She said                                                               
she    learned   about    stay-at-work/return-to-work   (SAW/RTW)                                                               
initiatives while attending  a forum sponsored by  the Council of                                                               
State  Governments  and the  United  States  Department of  Labor                                                               
State  Exchange  on  Employment   and  Disabilities  (SEED).  She                                                               
explained  that SEED  and its  partners help  states develop  and                                                               
implement inclusive workforce  development policies. She detailed                                                               
the   forum's  myriad   learning  opportunities   and  meaningful                                                               
interactions  related  to SAW/RTW  programs.  She  said that  the                                                               
final forum  project was  to draft  SAW/RTW legislation,  and the                                                               
result  was  SB   206.  She  then  read   the  following  sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                  Sponsor Statement for SB 206                                                                                
                                                                                                                                
     Each  year, countless  workers face  the challenges  of                                                                    
     injuries,  illnesses, or  changes  in their  disability                                                                    
     status,  often leading  to significant  time away  from                                                                    
     work. This not only  affects their livelihoods but also                                                                    
     impacts  the workforce  and  economy  at large.  Senate                                                                    
     Bill  206 seeks  to  restore Alaska's  once strong  and                                                                    
     healthy  workforce.   Through  the  creation   of  this                                                                    
     program,  an injured  worker  may  elect assistance  to                                                                    
     return-to-work  with  their  employer at  the  time  of                                                                    
     injury. The Program is optional  and can be declined by                                                                    
     a worker or an employer.                                                                                                   
                                                                                                                                
     These  programs  focus  on strategies  that  retain  or                                                                    
     reengage workers  experiencing such changes,  aiming to                                                                    
     swiftly  reintegrate   them  into  the   workforce.  By                                                                    
     providing  necessary  support  and  resources,  SAW/RTW                                                                    
     programs  ensure   that  workers  can   continue  their                                                                    
     careers   despite   new  health   challenges,   thereby                                                                    
     maintaining a robust and resilient workforce.                                                                              
                                                                                                                                
     The goal of the program is  to return the worker to the                                                                    
     same position with  the same employer or  to a modified                                                                    
     position with the  same employer after an  injury or an                                                                    
     occupational  disease   occurs.  Furthermore,  services                                                                    
     provided  as   part  of  the  assistance   program  are                                                                    
     provided  in  lieu  of reemployment  services.  Changes                                                                    
     under this  bill would be  optimized by the  ability of                                                                    
     the   insurer,  rehabilitation   specialist,  and   the                                                                    
     Department  of  Labor   and  Workforce  Development  to                                                                    
     provide   one   another  necessary   information.   The                                                                    
     services offered  as part of the  Program are available                                                                    
     as  a  service  apart from  a  determination  regarding                                                                    
     indemnity benefits.                                                                                                        
                                                                                                                                
2:07:12 PM                                                                                                                    
SENATOR GRAY-JACKSON continued reading the sponsor statement:                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Across  the  United  States,  states  like  Oregon  and                                                                    
     Montana, have made  significant strides in implementing                                                                    
     SAW/RTW initiatives.  These programs  have demonstrated                                                                    
     success in reducing the time  employees spend away from                                                                    
     work   due  to   disabilities  or   injuries,  offering                                                                    
     financial   incentives,   and  facilitating   necessary                                                                    
     workplace   adjustments.   The  adoption   of   similar                                                                    
     legislation  in Alaska  promises substantial  benefits.                                                                    
     It can enhance our  state's workforce stability, reduce                                                                    
     the economic impact of  prolonged employee absence, and                                                                    
     promote   a   more   inclusive  and   supportive   work                                                                    
     environment.  By passing  this legislation,  Alaska can                                                                    
     join other  states in  leading the  way towards  a more                                                                    
     adaptable   and    supportive   workforce,   ultimately                                                                    
     benefiting  both  our  economy  and  the  wellbeing  of                                                                    
     Alaskan workers.                                                                                                           
                                                                                                                                
2:08:16 PM                                                                                                                    
LUMA DIAZ, Staff, Senator Elvi Gray-Jackson, Alaska State                                                                       
Legislature, Juneau, Alaska, read the sectional analysis for SB
:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                 Sectional Analysis for SB 206                                                                                
                                                                                                                                
     Section  1:  Amends  AS  23.30.005   (h)  by  adding  a                                                                  
     reference  to  new  stay  at   work  program  under  AS                                                                    
     23.30.043.                                                                                                                 
                                                                                                                                
     Section 2:  Amends existing  statute, AS  23.30.041 (b)                                                                  
     by   moving  the   annual  reporting   of  reemployment                                                                    
     benefits  from May  until October  to  match the  other                                                                    
     annual  reports due.  Includes each  specific reporting                                                                    
     criteria.                                                                                                                  
                                                                                                                                
     Section  3: Makes  changes to  AS 23.30.041  (c) adding                                                                  
     thirty  days  to  the  time  of  required  reemployment                                                                    
     evaluations  to  allow  for the  medical  stability  of                                                                    
     claimants.   The   amendment  requires   the   Workers'                                                                    
     Compensation  Division to  notify injured  employees of                                                                    
     rights under  this section within 25  days of inability                                                                    
     to return to  the employee's employment at  the time of                                                                    
     injury, including  the option  of participation  in the                                                                    
     Stay At Work Program.                                                                                                      
                                                                                                                                
2:09:24 PM                                                                                                                    
MS. DIAZ continued with the sectional analysis:                                                                                 
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Section 4:  Amends AS 23.30.041  (f) by adding  that an                                                                  
     employee is  not eligible for reemployment  benefits if                                                                    
     a selection  under AS 23.30.041(c)  is not made.  Or if                                                                    
     an  employee  has  completed a  stay  at  work  program                                                                    
     previously  or has  been  found  noncooperative in  the                                                                    
     stay at work process under AS 23.30.043(l).                                                                                
                                                                                                                                
     Section 5: A  new section (Sec. 23.30.043)  is added to                                                                  
     establish  a  stay  at work  benefits  program.  A  new                                                                    
     position  is  added  as  a  subject  matter  expert  to                                                                    
     oversee  the program.  A  rehabilitation specialist  is                                                                    
     assigned  to  develop a  stay  at  work plan  requiring                                                                    
     participation   and   approval   from   the   employee,                                                                    
     employer, and  attending physician  and a  timeline for                                                                    
     submission  of plan.  Costs are  the responsibility  of                                                                    
     the employer  and shall not exceed  $3,000. The maximum                                                                    
     time  frame is  two years.  Noncooperation is  defined.                                                                    
     Participation  is voluntary.  The  employee may  pursue                                                                    
     reemployment   benefits  under   AS  23.30.041   as  an                                                                    
     alternative   if   the    employer   chooses   not   to                                                                    
     participate. An appeal process is outlined.                                                                                
                                                                                                                                
     Section 6: Amends existing statute  AS 23.30.100 (a) by                                                                  
     adjusting the timeframe by 15  days for notification of                                                                    
     a work-related injury or death.                                                                                            
                                                                                                                                
     Section  7:  Amends  AS  23.30.105   (a)  by  adding  a                                                                  
     reference  to a  new stay  at work  program established                                                                    
     under AS 23.30.043                                                                                                         
                                                                                                                                
     Section 8: Sets an effective date.                                                                                       
                                                                                                                                
2:11:51 PM                                                                                                                    
CHARLES  COLLINS, Director,  Division  of Workers'  Compensation,                                                               
Department of Labor and  Workforce Development (DOLWD), testified                                                               
by invitation  on SB 206.  He explained that  currently, workers'                                                               
compensation  has  a  rehabilitation process  that  provides  for                                                               
benefits when a worker is  injured. He said workers' compensation                                                               
provides  medical   benefits  for  injured  workers   as  needed;                                                               
however,  there  are times  when  employees  just need  a  little                                                               
incentive to  get back to  work. Sometimes, this  means returning                                                               
to a modified  job - which employers worry will  cost them money.                                                               
He  stated that  the average  cost  of a  modified job  is a  few                                                               
hundred dollars. He pointed out  that technological advances have                                                               
made it easier to make  the necessary modifications. He explained                                                               
that the goal with the SAW/RTW  program is to shorten the time it                                                               
takes for  people to return to  work. He surmised that,  for many                                                               
people, their job  is a large part of their  identity and keeping                                                               
them in  the workforce is a  win for the employee,  employee, and                                                               
for society. He  explained that the current  process of returning                                                               
to work  after injury takes  205 days; the SAW/RTW  program would                                                               
cut this to 49 days.                                                                                                            
                                                                                                                                
2:15:36 PM                                                                                                                    
MR.  COLLINS   said  that  currently,  the   biggest  problem  is                                                               
communication.  He shared  an  example of  what  happens when  an                                                               
employee  is  injured  and  communication  between  employer  and                                                               
employee breaks down  over time. He noted that  the employee will                                                               
also  hear  from  the  insurance   adjuster;  however,  they  are                                                               
primarily on  their own.  He explained that  SB 206  would enable                                                               
the department to step in - about  20 days after the injury - and                                                               
be the primary communication hub  for the employee, communicating                                                               
with  their   doctor,  employer,   etc.  This  would   allow  the                                                               
department to work  with the employee to determine  when they can                                                               
return to work -  and what they are able to  do once they return.                                                               
He said  that SB 206  creates a voluntary process  that employers                                                               
and employees  can take advantage of.  He noted that the  cost to                                                               
the employer  is minimal. He  stated that this would  not replace                                                               
the current  rehabilitation program, because there  will still be                                                               
employees who are not able to  return to work due to the severity                                                               
of  their  injuries  and/or  the  type  of  job  they  have  (and                                                               
potential modifications). He suggested  that even helping a small                                                               
number of  people return to work  more quickly would be  of great                                                               
value to all.                                                                                                                   
                                                                                                                                
2:20:53 PM                                                                                                                    
CHAIR BJORKMAN opened  public testimony on SB  206; finding none,                                                               
he held public testimony open.                                                                                                  
                                                                                                                                
2:21:25 PM                                                                                                                    
CHAIR  BJORKMAN  commented  that   the  forum  meetings  that  he                                                               
attended  with  Senator  Gray-Jackson,  Director  Collins,  among                                                               
others, were highly  valuable. He shared his  belief that passage                                                               
of SB 206 would result in  many Alaskans returning to work sooner                                                               
-   or   staying  on   the   job   after  being   injured   (with                                                               
modifications). He said that this  might seem like a non-issue to                                                               
those who have not  been injured on the job and  missed work as a                                                               
result; however,  he said  it was clear  from the  forum meetings                                                               
that Alaska  needs to make  changes to  improve in this  area. He                                                               
opined that SB 206 would enable the state to do better.                                                                         
                                                                                                                                
2:22:54 PM                                                                                                                    
CHAIR BJORKMAN held SB 206 in committee.