SB285
To Modify The Compensation Restrictions Under The Workers' Compensation Law That Resulted From Initiated Act 4 Of 1948.
Last Action (Feb. 24, 2025): Sine Die adjournment
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AI-Generated Summary
Senate Bill 285 proposes amendments to Arkansas's Workers' Compensation Law regarding benefit limits for injured employees. For injuries occurring on or after January 1, 2026, the bill sets the maximum weekly benefit for disability or death at 70% of the injured employee's average weekly wage, with an annual cap of $100,000. It also adjusts the permanent partial disability (PPD) rate calculation for injuries sustained on or after January 1, 2026, pegging it to 75% of the amount calculated for total disability under the new provisions. Additionally, the bill clarifies that PPD rates for amputations or the permanent total loss of use of a member shall align with the employee's total disability rate, subject to existing maximums. The legislation aims to modify long-standing compensation restrictions established by Initiated Act 4 of 1948.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are employees who sustain workplace injuries on or after January 1, 2026, particularly those who would have otherwise been subject to lower benefit caps. By increasing the maximum weekly and permanent partial disability rates, the bill provides higher potential compensation for workers, especially those in higher-wage positions who were previously limited by fixed dollar amounts.
Who Might Suffer?
The primary entities negatively impacted are employers and their insurance carriers. Because the bill increases the maximum compensation payable for disability, death, and permanent partial disability, employers and insurers will likely face higher costs associated with workers' compensation insurance premiums and direct liability for injury claims.
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