Attorney Brad Bleakney a leading authority on workers compensation in Illinois, offers several suggestions on how to control unmeritorious workers comp claims that may be precipated during a layoff.
1. Announce the layoff at the latest time possible as allowed under the law to prevent being set up with “exit accidents.”
2. Have laid off employees sign a short statement or release at the time of layoff (usually when they pickup their accrued vacation pay checks) indicating they waive pending or potential claims against the employer.
3. Have employees who are laid off check off and/or initial a statement (or check box) that they have had no unreported work accidents in the past 6-12 months. This provides a strong defense that they did not have any unreported accidents at the time of layoff.
In Illinois, that release can not be effective against a WC claim but it does serve to substantiate the defense. No document portending to settle out a WC case is binding in IL except upon approval with the Illinois Commission per Section 23 of the Act and per a recent case Maxit.
In Maxit, the company was forced to pay twice because they never obtained an approved $1.00 WC settlement contract waiving the WC rights at the time of a general release in the employer’s uninsured motorist claim that settled for $800,000. As a result, the employer later paid an extra $200,000 in the open WC claim because the original release was never approved by the Commission although the employer argued that they thought they were covered by the general release. I suggest making sure the releases were mutually contingent upon approval of the settlement by the Commission.
Brad Bleakney of Bleakney & Troiani in Chicago, IL practices in the areas of work-related injury claims third party litigation for accidental work injuries. He has a background in industry where he helped a Fortune 500 company reduce their workers’ compensation losses significantly. Brad can be reached at: Brad Bleakney, Bleakney & Troiani, 1 North Franklin (2625) Chicago, IL 60606 312-541-0045 or fax 312-541-0041 info@WorkComp-Chicago.com
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