High court seems skeptical of mandatory public union fees
Notable Attorneys
The Supreme Court appears ready to deliver a major setback to American unions as it considers scrapping a four-decade precedent that lets public-sector labor organizations collect fees from workers who decline to join.
During more than an hour of oral arguments Monday, the high court's conservative justices seemed likely to side with a group of California teachers who say those mandatory fees violate the free-speech rights of workers who disagree with a union's positions.
Labor officials fear unions' very existence could be threatened if workers are allowed to get all the benefits of representation without at least paying fees to cover the costs of collective bargaining. The case affects more than 5 million workers in 23 states and Washington, D.C.
But Justice Anthony Kennedy rejected arguments by lawyers for the state of California and the California Teachers Association that the current fee system is needed to prevent non-members from becoming "free riders" — workers who reap the rewards of union bargaining and grievance procedures without paying for it.
"The union basically is making these teachers compelled riders for issues on which they strongly disagree," Kennedy said, noting the political nature of bargaining issues like teacher salaries, merit promotions and class size.
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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.