$15 SeaTac minimum wage challenged in court
National News
A King County Superior Court judge declined Friday to immediately rule on a challenge to the voter-approved $15 an hour minimum wage requirement for airport workers in Seattle-Tacoma International Airport.
Judge Andrea Darvas said she'll issue a ruling with reasoning after Christmas Day but before January 1. Parties in the case had been expecting a ruling Friday.
The measure is scheduled to go into effect on January 1.
Last month voters in the city of SeaTac narrowly approved the measure, which would require a $15 minimum wage, a handful of paid sick days and other standards to around 6,000 workers at the airport and related industries, like hotels and rental car companies.
However, the legal fight over the measure is not expected to end with Darvas' ruling. An eventual appeal to the state Supreme Court could come from either side, depending on her ruling.
The challenge to the newly approved measure is being led by Alaska Airlines Group and other businesses. They say that an initiative approved by city residents doesn't have power over the airport, which is operated by the Port of Seattle. The Port of Seattle, a public entity, agrees.
Alaska Airlines Group also says state law prohibits initiatives from packaging laws. So they're arguing that the multiple requirements in the measure, such as the minimum wage and paid sick days, constitute packaging multiple laws into one initiative.
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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.