LCO 6224 \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-06916-R02-
HB.docx
1 of 4
General Assembly Committee Bill No. 6916
January Session, 2019
LCO No. 6224
Referred to Committee on LABOR AND PUBLIC EMPLOYEES
Introduced by:
(LAB)
AN ACT EXPANDING REM EDIES AND POTENTIAL LIABILITY FOR
UNREASONABLY CONTEST ED OR DELAYED WORKER S'
COMPENSATION CLAIMS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 31-300 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2019): 2
(a) As soon as may be after the conclusion of any hearing, but no 3
later than one hundred twenty days after such conclusion, the 4
commissioner shall send to each party a written copy of the 5
commissioner's findings and award. The commissioner shall, as part of 6
the written award, inform the employee or the employee's dependent, 7
as the case may be, of any rights the individual may have to an annual 8
cost-of-living adjustment or to participate in a rehabilitation program 9
administered by the Department of Rehabilitation Services under the 10
provisions of this chapter. The commissioner shall retain the original 11
findings and award in said commissioner's office. If no appeal from the 12
decision is taken by either party within twenty days thereafter, such 13
award shall be final and may be enforced in the same manner as a 14
judgment of the Superior Court. The court may issue execution upon 15 Committee Bill No. 6916
LCO 6224 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-06916-
R02-HB.docx }
2 of 4
any uncontested or final award of a commissioner in the same manner 16
as in cases of judgments rendered in the Superior Court; and, upon the 17
filing of an application to the court for an execution, the commissioner 18
in whose office the award is on file shall, upon the request of the clerk 19
of said court, send to the clerk a certified copy of such findings and 20
award. In cases where, through the fault or neglect of the employer or 21
insurer, adjustments of compensation have been unduly delayed, or 22
where through such fault or neglect, payments have been unduly 23
delayed, the commissioner [may] shall include in the award interest at 24
the rate prescribed in section 37-3a and a reasonable attorney's fee in 25
the case of undue delay in adjustments of compensation and [may] 26
shall include in the award in the case of undue delay in payments of 27
compensation, interest at twelve per cent per annum and a reasonable 28
attorney's fee. Payments not commenced within thirty-five days after 29
the filing of a written notice of claim shall be presumed to be unduly 30
delayed unless a notice to contest the claim is filed in accordance with 31
section 31-297. In cases where there has been delay in either 32
adjustment or payment, which delay has not been due to the fault or 33
neglect of the employer or insurer, whether such delay was caused by 34
appeals or otherwise, the commissioner [may] shall allow interest at 35
such rate, not to exceed the rate prescribed in section 37-3a, as may be 36
fair and reasonable, taking into account whatever advantage the 37
employer or insurer, as the case may be, may have had from the use of 38
the money, the burden of showing that the rate in such case should be 39
less than the rate prescribed in section 37-3a to be upon the employer 40
or insurer. In cases where the claimant prevails and the commissioner 41
finds that the employer or insurer has unreasonably contested liability, 42
the commissioner [may] shall allow to the claimant a reasonable 43
attorney's fee. No employer or insurer shall discontinue or reduce 44
payment on account of total or partial incapacity under any such 45
award, if it is claimed by or on behalf of the injured person that such 46
person's incapacity still continues, unless such employer or insurer 47
notifies the commissioner and the employee of such proposed 48
discontinuance or reduction in the manner prescribed in section 31-296 49
and the commissioner specifically approves such discontinuance or 50 Committee Bill No. 6916
LCO 6224 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-06916-
R02-HB.docx }
3 of 4
reduction in writing. The commissioner shall render the decision 51
within fourteen days of receipt of such notice and shall forward to all 52
parties to the claim a copy of the decision not later than seven days 53
after the decision has been rendered. If the decision of the 54
commissioner finds for the employer or insurer, the injured person 55
shall return any wrongful payments received from the day designated 56
by the commissioner as the effective date for the discontinuance or 57
reduction of benefits. Any employee whose benefits for total incapacity 58
are discontinued under the provisions of this section and who is 59
entitled to receive benefits for partial incapacity as a result of an 60
award, shall receive those benefits commencing the day following the 61
designated effective date for the discontinuance of benefits for total 62
incapacity. In any case where the commissioner finds that the 63
employer or insurer has discontinued or reduced any such payment 64
without having given such notice and without the commissioner 65
having approved such discontinuance or reduction in writing, the 66
commissioner shall allow the claimant a reasonable attorney's fee 67
together with interest at the rate prescribed in section 37-3a on the 68
discontinued or reduced payments. 69
(b) The provisions of subsection (a) of section 31-284 with respect to 70
the exclusivity of remedy between the employee and the employer 71
shall not apply to an action by an employee against an insurer or third-72
party administrator for breach of the covenant of good faith and fair 73
dealing in the handling of claims under this chapter or for a violation 74
of chapter 704 or 735a or section 38a-815 or 42-110b. A claimant for 75
benefits under this chapter is a third-party beneficiary of a contract of 76
insurance for an employer's liability for benefits under this chapter and 77
of a contract for a third-party administration of claims for benefits 78
under this chapter, and such insurer or third-party administrator owes 79
to such a claimant a duty of good faith and fair dealing and a duty not 80
to contest benefits unreasonably nor to delay benefits unreasonably. 81
The provisions of chapters 704 and 735a do not preempt a common-82
law action for breach of this covenant of good faith and fair dealing 83
and exhaustion of administrative remedies under this chapter is not 84 Committee Bill No. 6916
LCO 6224 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-06916-
R02-HB.docx }
4 of 4
required prior to the filing of such action, provided benefits awarded 85
or penalties imposed pursuant to chapter 568 shall be credited against 86
any duplicative damages awarded pursuant to such action. Damages 87
in successful actions against an insurer or third-party administrator 88
under this subsection may include, but need not be limited to, 89
demonstrable economic damages, damages for mental or physical 90
injury, pain or suffering arising from the misconduct of the insurer or 91
third-party administrator and attorneys' fees. 92
(c) No insurer, third-party administrator or organization authorized 93
to handle workers' compensation claims pursuant to chapter 568 shall 94
be allowed to seek indemnification from any employer or organization 95
as a result of a claim brought pursuant to this section. 96
(d) No insurer, third-party administrator or organization authorized 97
to handle workers' compensation claims pursuant to chapter 568 shall 98
seek increases in premium or agreed-upon compensation due to any 99
claim brought pursuant to this section. 100
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 31-300
LAB Joint Favorable