Seyfarth Shaw's Workplace Class Action Litigation Report
National News
Leading employment law firm Seyfarth Shaw LLP has issued its annual Workplace Class Action Litigation Report, covering a charged national landscape of "bet the company" employment disputes fueled by an aggressive plaintiffs' bar, invigorated federal and state enforcement regimes, a sluggish economic recovery, and several groundbreaking rulings by the U.S. Supreme Court in 2011 that are certain to reverberate in the year ahead and beyond.
Seyfarth notes that the Supreme Court's decision in Wal-Mart Stores v. Dukes, handed down last June, has already been cited more than 260 times in federal and state court opinions, and AT&T Mobility v. Concepcion 215 times -- remarkable figures for rulings less than a year old. Dukes, which established a new standard for certifying class actions, and Concepcion , which held that federal arbitration law supersedes limitations imposed by individual states, opened the floodgates to a wave a new case law in class actions, which will continue to evolve in the coming year and impact litigants for years to come.
Released this week, Seyfarth's 8th annual Workplace Class Action Litigation Report examines the theoretical and strategic uncertainties stemming from the Supreme Court's employment law rulings in 2011, and the challenges they pose for companies and their defense counsel. The new Report is the most comprehensive yet, examining 976 class action decisions rendered in the past 12 months by federal and state courts, including private plaintiff and government enforcement actions. The number of case rulings covered by Seyfarth climbed 15% over last year's total of 849 -- a direct result of issues raised by Dukes and Concepcion that have loomed over workplace litigation since those landmark decisions last spring.
Seyfarth's Report remains the sole compendium dedicated exclusively to labor and employment class action litigation in the U.S. Regarded as "the definitive source on employment class action litigation" (EPLiC Magazine, Spring 2011), it has become the "go-to" research and resource guide for businesses and corporate counsel facing complex litigation. Corporate counsel routinely depict the prospect of large workplace class-actions as especially worrisome for companies, as well as a significant burden for in-house legal budgets.
Seyfarth Shaw has over 750 attorneys located in 10 offices throughout the United States , including: Atlanta , Boston , Chicago , Houston , Los Angeles , New York , Sacramento , San Francisco and Washington, D.C. , as well as internationally in London . Seyfarth Shaw provides a broad range of legal services in the areas of labor and employment, employee benefits, litigation, corporate and real estate. The firm's clients include over 300 of the Fortune 500 companies, and our practice reflects virtually every industry and segment of the economy. For more information, please visit www.seyfarth.com.
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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.