Md. man's leave lawsuit lands in Supreme Court
National News
A man who sued the state of Maryland after allegedly being fired for trying to take a 10-day medical leave from his state job will have his case heard Wednesday by the U.S. Supreme Court, and the outcome could affect whether state workers nationwide can sue in similar situations.
Daniel Coleman was fired from his job overseeing contracts for the Maryland court system in 2007. He says he was fired after asking for time off for doctor-ordered bed rest to deal with hypertension and diabetes. Under a law passed by Congress and enacted in 1993, the Family and Medical Leave Act, employees can take up to three months of unpaid leave for certain reasons, including a serious health issue. After being fired, Coleman sued, claiming a violation of the leave law and discrimination, a claim that was later thrown out by a lower court. He asked Maryland to pay him a reported $1.1 million in compensatory and punitive damages.
But lawyers for Maryland argue Congress was wrong to give employees like Coleman the ability to sue state employers for money damages. Unlike private employers, states are generally exempt from such lawsuits. Two lower courts have agreed with Maryland that Congress overstepped its authority, and 26 other states are also supporting the state's arguments.
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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.