7th Circuit: FMLA Does NOT Dictate Wage Rate While on Light Duty under Workers’ Comp

On August 6, 2007, the 7th U.S. Circuit Court of Appeals ruled that the Family and Medical Leave Act (FMLA) does not dictate the wage rate for an employee while on light duty under a workers’ compensation plan. Hendricks v. Compass Group, USA, Inc., No. 06-3637 (7th Cir., August 6, 2007).

Florida Becomes 7th State to Grant Domestic Violence Leave

Effective July 1, 2007, Florida became the 7th state to require employers to provide time off to employees who are victims of domestic violence. The other states are: California, Colorado, Hawaii, Illinois, Kansas and Maine.

Hartford Settles with California Department of Insurance

Effective July 1, 2007, Hartford Life and the California Dept. of Insurance entered into a settlement regarding discretionary clauses. Under the terms of the settlement, Hartford Life agrees to stop using discretionary clauses in its long-term disability policies issued in California and substitute language specified in the agreement that describes how Hartford will determine eligibility for benefits.

South Carolina Enacts Workers’ Compensation Reforms

On June 25, 2007, South Carolina Governor Mark Sanford signed workers’ compensation reform legislation into law. The new law:

• Terminates the Second Injury Fund;
• Allows insurers and employers to challenge a presumption of total and permanent disability when a worker suffers a 50% or more disability to his or her back;
• Permits claim adjusters to speak to claimants’ doctors;
• When physical trauma is absent, it requires workers to prove with a preponderance of evidence that mental injury and stress are caused by their jobs;
• Eliminates one level of appeal;
• Requires that repetitive trauma claims be supported by medical evidence;
• Increases penalties for fraud.

Most provisions of the new laws took effect on 7/1/2007 and apply to all employers in the state.The last date the Second Injury Fund can accept qualifying claims is 7/1/2008, and the Fund will be completely terminated by 7/1/2013.

5th Circuit Upholds Termination Based on Insufficient FMLA Notice

On May 10, 2007, in the case of Sandra Greenwell v. State Farm Mutual Automobile Insurance Co., the 5th Circuit Court of Appeals upheld a district court ruling that termination of employment based on excessive absences was permitted because the alleged notice of the need for leave under the Family and Medical Leave Act (FMLA) was insufficient. This is an important precedent because notice of need for leave is a frequent area of conflict in employee lawsuits regarding termination and FMLA rights.

6th Circuit Rules on Definition of Hours of Service

On May 2, 2007, in the case of Carla Mutchler v. Dunlap Memorial Hospital, the 6th Circuit Court of Appeals upheld a district court ruling that the hours for purposes of the hours of service requirement under FMLA is determined based on the actual hours worked.