Judges send Tyson workers’ virus lawsuit back to state court
National News
A federal appeals court has ruled that Tyson Foods can’t claim it was operating under the direction of the federal government when it tried to keep its processing plants open as the coronavirus spread rapidly within them during the early days of the pandemic.
So the Des Moines Register reports that a lawsuit filed by several families of four workers who died after contracting COVID-19 while working at Tyson’s pork processing plant in Waterloo will be heard in state court. The families allege that Tyson’s actions contributed to the deaths.
Tyson had sought to move the case to federal court because it said federal officials wanted it to keep its plants running. The company cited an executive order former President Donald Trump signed that designated meat processors as essential infrastructure.
“The fact that an entity — such as a meat processor — is subject to pervasive federal regulation alone is not sufficient to confer federal jurisdiction,” Judge Jane Kelly wrote in the decision.
The court also noted that Trump’s order was signed in late April 2020 after many of its workers were infected. More than 1,000 Tyson workers at the Waterloo plant tested positive for the virus that spring and at least six died.
Tyson spokesman Gary Mickelson said the Springdale, Arkansas-based company is disappointed in the court ruling, but he defended the steps Tyson took to keep workers safe during the pandemic.
“We’re saddened by the loss of any of our team members to COVID-19 and are committed to protecting the health and safety of our people,” Mickelson said. “We’ve implemented a host of protective measures in our facilities and in 2021 required all of our U.S. team members to be vaccinated.”
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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.