Cost-of-living increase for disability income to injured workers discussed

The Business and Labor Committee heard testimony Feb. 25 on a bill that would calculate the maximum workers’ compensation benefit received for total disability on an annual basis.

Under LB302, introduced by Cortland Sen. Norm Wallman, a workers’ weekly income benefits for total disability would be adjusted annually in proportion to the average weekly wage increase.

While the allowable maximum amount is updated annually, Wallman said, the workers’ compensation amount is not adjusted for living costs once it is set.

Steve Howard, representing the Nebraska AFL-CIO, testified in support of the bill, saying a cost of living adjustment should be considered for people who are permanently injured.

He said the amount of workers’ compensation benefits paid to people who are permanently and totally disabled is not adequate for their cost of living. Permanently disabled workers typically end up on state assistance programs, he said, so increasing their insurance benefits would relieve taxpayers.

John Rehm of the Nebraska Association of Trial Attorneys also testified in support of the bill. The Nebraska Supreme Court has determined that disability benefits should approximate a workers’ loss of earning power, he said, which increases over time.

Robert Hallstrom, representing Nebraskans for Workers’ Compensation Equity and Fairness, testified in opposition to the bill, saying it would increase the cost of insurance premiums for employers who purchase workers’ compensation coverage and self-insured employers.

The committee took no immediate action on the bill.