By Judge Allen Phillips, Jackson

Remarkably, July 1, 2025, will be here before we know it. Seems like the holidays and winter were just here. But, just as time marches on, so does the law, and as of July 1, some changes to the Workers’ Compensation Law will take effect.

Notice

The Legislature rearranged the provisions of the notice statute, section 50-6-201. Now, the basic requirements of notice remain in subsection (a) and the notice required in gradual or cumulative trauma injuries remains in subsection (b), but the requirements of the notice, and the effects of any “defects” in the notice, were moved to a new subsection (c). In short, subsections (a)(2) and (a)(3) are now (c)(1) and (c)(2).

Further, the Legislature added the word “written” to (c)(2), so that section now reads in relevant part: “No defect or inaccuracy in the written notice shall be a bar to compensation, unless the employer can show . . . prejudice.”

This seemingly minor change might be linked to the Appeals Board’s holding in Ernstes v. Printpack. There, the Board stated that “if written notice was provided, but the employer asserts there was a defect or inaccuracy of the notice,” then the burden to show actual prejudice shifts to the employer. The statutory change clarifies that a defect in notice now applies to written notice.

Next Step Program

The sunset provision of this program of June 30, 2025, was removed from 50-6-208(i)(7). This section provides that employees who don’t return to work after the time that the original award expires under section 50-6-207(3)(A) might apply for vocational recovery assistance from the Bureau’s Next Step Program.

Attorney’s Fees

Section 50-6-226(a)(2)(A) was amended to add that attorney’s fees cannot be recovered for the voluntary payment by the employer of the “costs of burial, cremation, or other lawful means of disposition of human remains.” This adds to the current language of no fees for voluntary payment of medical benefits.

In addition, section 50-6-226(d)(2)(b) was amended to allow attorney’s fees for an unreasonable denial for another five years, through June 30, 2030.

Mediators

Section 50-6-236(b)(3) was deleted. This means a mediator is no longer required to accept all information given to the Bureau regarding an employee’s wages, medical condition, or other information about a claim and place in the claim file. This removes from the mediators the responsibility to maintain everything regarding a claim.

Contempt

Section 50-6-238(a) now has a new subdivision (5) that empowers the judges of the Court of Workers’ Compensation Claims to impose a fine of up to $50 for contempt under section 29-9-102.

Hearing Requests

Section 50-6-239(a) currently reads that a party seeking resolution of disputed issues shall file a request for a hearing “within 60 days” after a dispute certification notice is filed. As of July 1, the section will read: “If the presiding judge has not set a case for a hearing, then within sixty (60) days” a party shall file a request. This change simply means a judge might set a hearing at his or her discretion before the expiration of 60 days. If so, then a party would not have to request a hearing on their own within the 60-day period.

Issues for Hearing

Section 50-6-239(b) currently allows a party to present issues not certified by a mediator on the dispute certification notice only if the parties did not, or could not have had, knowledge of the issue before issuance of the notice, or if prohibiting presentation of the issue would result in substantial prejudice to the party wanting to present an issue.

After July 1, a judge may, at their discretion, “grant permission for parties to present issues that have not been certified” by the mediator. This allows the Court more discretion and facilitates trials on the merits without possible exclusion of issues.

Etc.

The amendment also removed a seldom used provision: that an employee shall receive payments of benefits during an appeal when the appellant did not contest the finding of certain benefits being owed. Finally, the amendment adjusted the age requirements and term limits of judges.

Conclusion

British Prime Minister Benjamin Disraeli said, “Change is inevitable. Change is constant.”

This is certainly true when it comes to workers’ compensation law. So, as you prepare for your Independence Day celebrations, take note of the above changes and consider how they might impact your practice.