Oklahoma City hires private law firm for union talks

National News

Oklahoma City Council members hired a private law firm Tuesday to lead upcoming contract negotiations with the city’s police and firefighter unions.

The firm, McAfee and Taft, was hired in part because negotiations with the unions have gone poorly in recent years.

"It’s just broken,” Ward 4 Councilman Pete White said of recent negotiations with the public safety unions.

Two of the firm’s labor attorneys will be paid $225 an hour each to lead negotiations with the unions for the next fiscal year, according to a contract council members unanimously approved Tuesday.

City officials hope the arrangement helps improve a damaged relationship with the public safety unions.

"It’s just to put a new face on it,” White said. "The people that do the hardest jobs we have in this city are the police department and fire. For the relationship to be this acrimonious ... is not acceptable.”

City attorneys handled past negotiations and will assist with the upcoming negotiations.

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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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