12/14/2005
CONTACT: Melissa Sharp, (202) 554-9000
WASHINGTON, D.C. -- The Montana Workers' Compensation Court issued a ruling Monday declaring that a state law permitting workers' compensation benefits to expire once a worker is eligible for retirement benefits is constitutional. The National Federation of Independent Business' Legal Foundation filed an amicus brief in this case, urging the court to rule that the statute is not only constitutional but also vital for the survival and expansion of small businesses in Montana, since it directly impacts workers' compensation costs.
The Montana statute, passed by the state legislature in 1981, allows workers' compensation benefits to cease once a worker is eligible for retirement benefits. The law was challenged by claimants who were seeking lifetime wage replacement benefits for workers who are permanently partially disabled.
"The Montana Workers 'Compensation Court understands that businesses can not be held liable for lifetime benefits. Once a person is eligible for retirement benefits, they inherently should not be eligible to collect lost wages from a former employer," said Karen Harned, executive director of NFIB's Legal Foundation. "NFIB is thrilled that the court ruled against this unwarranted expansion of workers' compensation benefits – a decision that will protect many Montana small businesses."
The case, if decided for the claimants, was estimated to potentially cost as much as $300 million and drive workers' comp premiums up as much as 20 percent.
The case is, Satterlee vs. Lumberman's Mutual Casualty Company 2005 MTWCC 55 WCC No. 2003-0840. The decision is available online via the link below.
