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Alaska Senate Unanimously Passes Comprehensive Workers' Compensation Reform Bill and Extension of Senior Benefits
Anchorage – During the last week of the legislative session, the Alaska legislature passed Senate Bill 147, which now encompasses provisions from House Bill 239, Senate Bill 170, Senate Bill 183, and Senate Bill 206. This comprehensive bill aims to significantly enhance the support and resources available to injured workers, streamline administrative processes, and ensure timely benefits.
Senate Bill 147, sponsored by Senator James Kaufman, R-Anchorage, establishes critical reforms to Alaska’s Workers’ Compensation System, focusing on the following key areas:
- Return-to-Work Emphasis: The bill shifts the reemployment system's focus from retraining for new careers to helping injured workers return to their preferred professions. This change addresses the outdated and burdensome aspects of the current system.
- Updated Reimbursement Rates: Financial compensations for required retraining are adjusted to better reflect current economic realities, enabling injured workers to earn comparable wages.
- Administrative Simplification: The bill reduces bureaucratic hurdles, accelerates recovery and employment processes, and modernizes job analysis responsibilities to ensure effective reemployment plans.
- Streamlined Timelines: Improved alignment of timelines and reporting requirements reduces administrative costs and duplicative reporting, enhancing efficiency.
“This effort marks a significant advancement in how we support our injured workers,” said Senator Kaufman. “By focusing on return-to-work, ensuring timely benefits, and establishing comprehensive rehabilitation programs, we are creating a more resilient and fair workers’ compensation system.”
Senate Bill 183, introduced by the Senate Labor and Commerce Committee and incorporated into SB 147, ensures the Workers’ Compensation Benefits Guaranty Fund can retain its fiscal year-end balance. This change guarantees that funds are available to make timely payments to injured workers. Previously, year-end sweeps sent the Fund’s balance to the State’s General Fund, often leaving it empty when benefits were needed.
“It is unacceptable that injured workers must wait months for benefits. This bill ensures that the Workers’ Compensation Benefits Guaranty Fund can meet its obligations promptly, providing much-needed financial stability for injured workers,” said Senator Jesse Bjorkman, R-Nikiski, Chair of the Senate Labor and Commerce Committee.
Senate Bill 206, sponsored by Senator Elvi Gray-Jackson, D-Anchorage, establishes the Alaska State Workers' Rehabilitation and Return-to-Work (SAW/RTW) program. This voluntary initiative provides injured workers with the support needed to return to their jobs or modified positions with the same employer. It creates a Vocational Rehabilitation Counselor position within the Department of Labor and Workforce Development who will coordinate between employees, employers, and physicians to maintain workforce engagement and productivity.
“Senate Bill 206 leverages successful models from other states to reduce employee absences and foster a supportive work environment,” said Senator Gray-Jackson. “This program will help injured workers return to their roles swiftly and with confidence, ensuring they continue to be valued members of the workforce.”
House Bill 239 was also introduced on the House Floor as an amendment to SB 147 in collaboration with Representative Andy Josephson, D-Anchorage. These provisions represent a significant step forward in recognizing the mental health challenges faced by first responders, correctional officers, emergency medical dispatchers, peace officers, and similar professions. By establishing a presumption that an employee’s PTSD claim is compensable, the bill acknowledges the often invisible yet profound impact of trauma experienced by these individuals in the line of duty. This targeted approach is crucial, as it ensures that those who are frequently exposed to highly stressful and traumatic situations receive the necessary support and compensation. Unlike visible injuries such as broken bones, PTSD and other mental health conditions can be harder to diagnose and substantiate, making this legislative effort an essential measure to protect and validate the experiences of first responders.
Senate Bill 147 also included Senate Bill 170 extending Alaska’s Senior Benefits program to June 30, 2034, which you can read more about here. Senate Bill 147 now heads to Governor Dunleavy for his signature.
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