The bill is set to amend existing statutes under the Code of Virginia relating to workers' compensation, specifically Section 65.2-804. By requiring employers to provide clear notice to employees about their rights following a claim denial, the legislation seeks to improve the overall claims process and empower employees. Additionally, the bill introduces stipulations regarding the cancellation of insurance policies, mandating that employers give 30 days' notice before canceling insurance or self-insurance membership, allowing employees to prepare accordingly.
Summary
SB1037 focuses on enhancing the transparency and communication regarding workers' compensation claims and insurance policies in Virginia. The bill mandates that if an employer or their insurer denies a covered employee's request for workers' compensation benefits, they must include a notice informing the employee of their right to dispute that denial with the Virginia Workers' Compensation Commission. This change is aimed at ensuring that employees are well informed of their rights and can take action to contest unfavorable decisions regarding their benefits.
Contention
While the bill has received some support for its intent to protect employee rights, notable points of contention have arisen around the practicality and effectiveness of these requirements. Critics may argue that the added administrative burden on employers could lead to confusion or delays in the claims process, potentially undermining the efficiency of the workers' compensation system. Ultimately, the balance between protecting employee rights and minimizing the burden on employers remains a contentious topic in discussions surrounding SB1037.