No. 32057 (New Rule): R602-6. Procedures Applicable for Approval of Settlement Agreements in Workers' Compensation

DAR File No.: 32057
Filed: 10/15/2008, 01:13
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to relocate the Commission's existing rule regarding procedures for approval of workers' compensation settlements.

Summary of the rule or change:

Under a concurrent rule filing, the Commission has removed these provisions from Rule R602-2. This rule will reestablish the same provisions as Rule R602-6. Consequently, the proposed rule will carry forward existing standards for presenting settlement agreements to the Commission, as well as the Commission's standards for approving such agreements. (DAR NOTE: The proposed amendment to Rule R602-2 is under DAR No. 32055 in this issue, November 1, 2008, of the Bulletin.)

State statutory or constitutional authorization for this rule:

Section 34A-2-420

Anticipated cost or savings to:

the state budget:

Because this rule does not change current practice or standards, the Commission anticipates no costs or savings to the state budget.

local governments:

Because this rule does not change current practice or standards, the Commission anticipates no costs or savings to local governments.

small businesses and persons other than businesses:

Because this rule does not change current practice or standards, the Commission anticipates no costs or savings to small businesses.

Compliance costs for affected persons:

This rule does not impose any new procedural or substantive obligations on the parties involved in workers' compensation settlements. For that reason, the rule will not result in any compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule is, essentially, a house-keeping measure that is part of a reorganization and renumbering of some of the Commission's existing rules. Because it does not change current practice and does not impose any new or additional obligations, it will have no fiscal impact on businesses. Sherrie Hayashi, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Labor Commission
Adjudication
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Richard M. Lajeunesse at the above address, by phone at 801-536-7928, by FAX at 801-530-6333, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/01/2008

This rule may become effective on:

12/08/2008

Authorized by:

Sherrie Hayashi, Commissioner

RULE TEXT

R602. Labor Commission, Adjudication.

R602-6. Procedures Applicable for Approval of Settlement Agreements in Workers' Compensation.

R602-6-1. Statutory Authority.

Section 34A-2-420 requires the Commission to review all agreements for the settlement or commutation of claims for workers' compensation or occupational disease benefits and grants the Commission discretion to approve such agreements. The Commission's authority under Section 34A-2-420 applies to all claims arising under the Utah Workers' Compensation Act or Occupational Disease Act, regardless of the date of accident or occupational disease. This rule sets forth the requirements for Commission approval of such agreements.

 

R602-6-2. Applicability of Rule.

This Rule applies to settlements of all claims under the Workers' Compensation Act.

 

R602-6-3. General Considerations.

Settlement agreements may be appropriate in claims of disputed validity or when the parties' interests are served by payment of benefits in a manner different than otherwise prescribed by the workers' compensation laws. However, settlement agreements must also fulfill the underlying purposes of the workers' compensation laws. Once approved by the Commission, settlement agreements are permanently binding on the parties. The Commission will not approve any proposed settlement that is manifestly unjust.

 

R602-6-4. Procedure.

A. Parties interested in a present or potential workers' compensation claim, whether or not an application for hearing has been filed, may submit their settlement agreement to the Commission for review and approval. The Commission may delegate its authority to review and approve such agreements.

B. Each settlement agreement shall be in writing, executed by each party and such party's attorney, if any, and shall include a proposed order for Commission approval of the agreement.

C. Each settlement agreement shall set forth the nature of the claim being settled and what claims are in dispute, if any.

D. Each settlement agreement shall contain a statement that each party understands that the agreement is permanent, binding and constitutes full and final settlement of any right the claimant may otherwise have to future benefits, including medical benefits. The Commission may establish an approved form for complying with the foregoing disclosure requirement.

E. Attorney's fees shall be allowed as provided by Rule R602-2-4. Each settlement agreement shall describe the amount to be paid to claimant's counsel as attorney's fees and costs, the manner in which such amounts are computed and the method of payment thereof.

F. The settlement agreement may provide for payment of benefits through insurance contract or by other third parties if the Commission determines: a) such payment provisions are secure, and b) such payment provisions do not relieve the parties of their underlying liability for payments required by the agreement.

G. Upon receipt of a proposed settlement agreement meeting the requirements of this rule, the Commission shall review such proposed agreement.

H. As needed, the Commission may contact the parties and others to obtain further information about the proposed settlement.

I. If the Commission determines that a proposed settlement agreement conforms with this rule, the Commission shall approve such agreement and notify the parties in writing.

J. If the Commission determines that a proposed settlement agreement does not comply with this rule, the Commission shall notify the parties in writing of its reasons for rejecting the proposed agreement.

K. The Commission shall retain a record of its action on all settlement agreements submitted to it for approval.

 

KEY: workers' compensation, administrative procedures, hearings, settlements

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 34A-2-420