Workers' compensation; failure to timely pay compensation.
Impact
The bill is particularly significant as it enforces stricter penalty measures against employers who delay payments. It alters the existing legal framework in Virginia by emphasizing timely compensation and imposing heavy penalties for any delays. Supporters of HB1966 argue that these changes will deter employers from neglecting their payment responsibilities and thereby improve the financial situation of injured workers. Proponents believe this would lead to better compliance and faster resolution of compensation claims, allowing workers to focus on recovery without the added stress of delayed financial compensation.
Summary
House Bill 1966 seeks to amend the existing provisions in §65.2-524 of the Code of Virginia related to the timely payment of workers' compensation. The bill stipulates that if a compensation payment is not made within two weeks after it becomes due, a penalty of 20 percent of the unpaid amount will be added. Furthermore, for any subsequent failures to pay on time, additional specified penalties escalate from $100 for the first failure to $500 for the fifth and any additional subsequent failures. This amendment is intended to ensure that employees receive their compensatory payments promptly, thus protecting their financial stability while recovering from workplace injuries.
Contention
While the bill aims to enhance protections for workers, it may also face opposition from businesses concerned about increased costs associated with the penalties for missed payments. Employers may argue that the mandatory penalties could lead to financial strain and disincentivize hiring or maintaining employees due to potential financial liabilities. Critics may contend that the provisions might unintentionally penalize employers who face legitimate difficulties in making timely payments. Balancing the needs of both workers and employers will likely be a significant topic of discussion as the bill progresses through the legislative process.