Court gives fertilizer dealers a reprieve from policy change
Headline Legal News
A court ruling has given farm fertilizer dealers a reprieve from a federal policy change that some say would unfairly burden the industry.
The Occupational Safety and Health Administration policy change announced last year would regulate retail dealers of farm fertilizer such as anhydrous ammonia under the same standards as manufacturers. It came after a deadly explosion at a Texas plant in 2013.
The Agricultural Retailers Association and The Fertilizer Institute say the change would affect 3,800 fertilizer retailers nationwide, costing them more than $100 million. The two organizations sued a year ago.
The change was to take effect this coming Saturday. But a federal appeals court has ruled that OSHA can't implement it without going through a formal rule-making process.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.