Substitution of a Carrier for Employer as Liable Party

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By regulation, the ability of an employer who is not considered self-insured to discharge its liability for compensation and the administration in facilitating such ability under the law shall be discharged by the carrier, including all obligations and duties of the employer regarding such liability as imposed by law. Therefore, for such purpose the following shall be administered by the carrier: 

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• Notice to or knowledge of an employer of the occurrence of the injury shall be notice to or knowledge of the carrier;

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• Jurisdiction under the A.S. Workmen's Compensation Act over the employer by the Commissioner, the Commission, or any court shall be jurisdiction over the carrier;

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• Any requirement by the Commissioner, the Commission, or any court under any compensation order, finding or decision shall be binding upon the carrier in the same manner and to the same extent as upon the employer.

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Invalid Agreements

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The employer is prohibited to enforce any invalid agreement for an employee to pay any portion of a premium paid by his employer to a carrier, or to contribute to a benefit fund or department maintained by such employer for the purpose of providing compensation or medical services and supplies as required by law. Any employer who makes deduction for such purpose from the pay of any employee entitled to the benefits is guilty of a Class C misdemeanor.

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Compensation a Lien against an Employer or Carrier's Assets or Both

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Any person entitled to compensation has lien against the assets of the carrier or employer for such compensation without limit or amount and is upon insolvency, bankruptcy, or reorganization in bankruptcy proceedings or the carrier or employer, or both entitled to preference and priority in the distribution of the assets of such carrier or employer, or both. 

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Payment and Reimbursement of Medical Expenses & Treatments

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The employer is liable to compensate medical expenses and treatments by the employee for his or her work-related injury, which includes the furnishing of such "medical, surgical, and other attendance or treatment, nurse, hospital service, medicine, crutches, and apparatus for such period as the nature of the injury or the process of recovery may require" for the injured employee. If the employer fails to provide the same after the request by the injured employee, then such injured employee may do so at the expense of the employer. [Section 32.0619(a)(b)].

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Under Section 32.0619(c), the employee is not entitled to recover any amount expended by him for such treatment or services unless his employer has refused or neglected to do or unless the nature of the injury required such treatment or services and the employer or his superintendent or foreman, having knowledge of such injury has neglected to provide the same; nor may any claim for medical or surgical treatment be valid pad enforceable, as against an employer, unless, within 20 days following the first treatment, the physician giving such treatment furnishes to the employer and the Commissioner a report of the injury and treatment on a form prescribed by the Commissioner (or Form MED-01: Physician First Report of Injury & Treatment). The Commissioner may excuse the failure to furnish such report within 20 days if he finds it to be in the interest of justice to do so, and he may, upon application by a party in interest, make an award for the reasonable value of such medical or surgical treatment obtained by the employee.

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Payment of Disability & Death Benefits

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Liability shall also include the compensation of both disability and death benefits owe to the injured employee and qualified beneficiaries for death benefits. For compensability of disability benefits, no compensation is allowed for the first three days of disability except for medical benefits. In case an injury results in disability of 14 calendar days or more, the compensation shall run from the date of disability but only when full wages are discontinued.

 

Those eligible for the decedent's death benefits shall include the surviving or dependent spouse; all surviving or dependent child under the ages of 18 years old; and other dependents in case of no surviving spouse or child or if the amount payable to a surviving wife or dependent husband and to children shall be less in the aggregate than 66-2/3% of the average wages of the deceased. These other dependents shall include the decedent's grandkids and siblings under the ages of 18 years old; both parents; and both grandparents. All must be dependents of the decedent at the time of death in order to qualify. 

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Employer's Liability vs. Fault of a Third Party

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The liability of an employer for medical treatment may not be affected by the fact that his employee was injured through the fault or negligence of a third party not in the same employ. The employer shall, however, have a cause of action against such third party to recover any amounts paid by him for such medical treatments in like manner as provided in Section 32.0669. [Section 32.0619(g)]

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Validity of Liability

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No assignment of or release of liability for compensation or benefits due or payable under provisions of the ASWC Act except as otherwise under the statute is valid, and such compensation and benefits shall be exempt from all claims of creditors and from levy, execution, attachment, or other remedy for recovery or collection of debt which exemption may not be waived. The employer's liability for workmen's compensation benefits is fully fixed and guaranteed under the statute and may not be altered by way of contract.

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