Durational limit on benefits extended to 416 weeks
The Maine Workers' Compensation Board has recently extended the durational
limit on benefits from 364 to 416 weeks. This limit has intermittently been
extended, with the most recent action occurring on December 4, 2007.
Maine employees fall under two different wage replacement systems. Employees
with high levels of permanent impairment can receive lifetime benefits. In most
cases, where permanent impairment is not high, there is a durational limit on
how many weeks an employee may receive benefits.
Next Steps for Employers: The provision applies retroactively to
January 1, 2007, so any employee who had their workers' compensation weekly
benefits terminated, based on the old durational cap, between January 1 and
December 4, 2007, must now be paid an additional year.
How do fringe benefits affect average weekly wage and compensation
rates?
A basic, but sometimes confusing issue under the Maine Workers'
Compensation system is when fringe benefits are included in an average weekly
wage. An employee's average weekly wage and compensation rate do not include
fringe benefits unless benefits are discontinued by the employer An example
would be when an employee's medical coverage is terminated.
Facts about termination or inclusion of fringe benefits:
If benefits are discontinued, employers must
file an amended Wage Statement with the Board.
The increase in average weekly wage will only
affect an employee's compensation rate if the rate is below two-thirds the State
average weekly wage at the time of injury.
The compensation rate need only be increased to
a maximum of two-thirds of the State average weekly wage as of the date of
injury.
Because the issue of termination or inclusion of fringe benefits is complex,
we recommend all employers contact their insurance representative or workers'
compensation counsel for further guidance. Click here to review the rules document from the Workers
Compensation Board.
Workers' Comp Updates
The State of Maine minimum wage was raised to
$7.00 an hour as of October 1, 2007.
On July 1, 2007 the maximum compensation rate
under the Maine Workers' Compensation Act (WCA) was increased to $574.08. Only
individuals who are already at the maximum rate of incapacity benefits are
entitled to this cost of living adjustment.
The WCA is amended for injuries occuring June 20, 2007 and
thereafter to provide surviving dependents up to 500 weeks of benefits from the
date of the the work injury-related death. The law removes the credit for
indemnity payments made to the injured employee before the date of death.
Minors, students, and physically or mentally earning handicpapped dependents may
be entitled to death benefits beyond 500 weeks.
