Supreme Court won’t upset Arkansas anti-Israel boycott law

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The Supreme Court on Tuesday refused to step into a legal fight over state laws that require contractors to pledge not to boycott Israel.

The justices rejected an appeal on behalf of an alternative weekly newspaper in Little Rock, Arkansas, that objected to a state law that reduces fees paid to contractors that refuse to sign the pledge.

The full federal appeals court in St. Louis upheld the law, overturning a three-judge panel’s finding that it violated constitutional free speech rights.

Similar measures in Arizona, Kansas and Texas were initially blocked by courts, prompting lawmakers to focus only on larger contracts. Arkansas’ law applies to contracts worth $1,000 or more.

Republican legislators in Arkansas who drafted the 2017 law have said it wasn’t prompted by a specific incident in the state. It followed similar restrictions enacted by other states in response to a movement promoting boycotts, divestment and sanctions of Israeli institutions and businesses over the country’s treatment of Palestinians. Israeli officials said the campaign masked a deeper goal of delegitimizing and even destroying their country.

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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.

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