In the realm of New York workers’ compensation claims, return-to-work (RTW) programs serve as a critical bridge between injury recovery and workforce re-entry. These initiatives not only aid injured employees in regaining productivity but also help employers manage costs and maintain operational continuity.

With the 2017 amendments to the Workers’ Compensation Law (WCL), carriers and employers have generally been granted a statutory reprieve and/or credit against long-drawn-out claims involving indemnity benefits paid beyond 130 weeks from the date of injury. However, the carrier’s credit against temporary indemnity benefits paid beyond 130 weeks is not absolute, and employers can, and arguably should, still facilitate and/or expedite RTW processes, particularly through strategic use of light-duty job offers.

This article explores the history of RTW programs in New York, the impact of the 2017 reforms, and why crafting a precise light-duty offer still matters and is essential for all stakeholders.

Understanding Return-to-Work Programs in New York Workers’ Compensation

RTW programs in New York are designed to facilitate an injured worker’s safe and timely return to employment, often before full recovery. Administered through the New York State Workers’ Compensation Board (WCB) and supported by many employers, these programs encourage transitional roles that accommodate injured workers’ medical restrictions. For injured workers, RTW can mean resuming duties with modifications, such as reduced hours or alternate tasks, allowing them to continue earning wages while healing. Employers benefit from reduced claim costs, as successful RTW minimizes the duration of temporary disability benefits and lowers premiums over time. RTW programs also align with broader goals of rehabilitation, reducing dependency on benefits and fostering a supportive work environment.

The 2017 Amendments: A Catalyst for Timely Return to Work

The 2017 workers’ compensation reforms, enacted as part of the state budget (Chapter 59, Laws of 2017), introduced significant changes aimed at controlling costs while protecting workers. Central to these amendments is the revision to WCL § 15(3)(w), which applies to injuries occurring after April 9, 2017. This section now allows insurance carriers a credit against permanent partial disability (PPD) benefits for any temporary disability payments made beyond 130 weeks (2.5 years) from the date of injury, among other amendments.

This credit mechanism creates a strong incentive for carriers and employers to accelerate the transition from temporary to permanent disability classification or, ideally, facilitate an earlier return to work. By capping the “free” temporary benefit period at 130 weeks, the reforms discourage prolonged temporary disability claims, as extended payments directly reduce the maximum PPD indemnity weeks available later and/or post-classification.

A “safety valve” provision permits extensions beyond 130 weeks if the WCB determines the worker has not reached maximum medical improvement (MMI), shifting the burden to carriers to prove MMI via independent medical exams or other means. Specifically, claimants can claim the safety valve provision and attempt to toll the credit against temporary benefits beyond the 130-week mark by meeting four requirements: (1) permanency is at issue; (2) the claimant has submitted medical evidence that he or she is not at MMI; (3) the carrier/employer has produced, or has had a reasonable opportunity to produce, an independent medical examination concerning MMI; and (4) the Board has determined that the claimant is not yet at MMI.

The 2017 amendments and 130-week cap on temporary benefits should theoretically motivate all parties to resolve claims faster.  However, that is not always the case in practice and employers can and should also do their part to shorten temporary disability benefit claims and boost RTW efforts through the use of carefully crafted light-duty job offers.  For employers, this means proactively engaging in RTW strategies with counsel to avoid protracted PPD benefits, ultimately lowering overall claim exposure.

The Critical Role of Light-Duty Job Offers

A cornerstone of effective RTW is the light-duty job offer, a modified position that aligns with an injured worker’s medical restrictions. In New York, light-duty assignments do not need to mirror the pre-injury role in title, duties, or even pay rate, but they must be suitable and compliant with physician-approved limitations. These offers are pivotal because they can shift a claim from expensive temporary disability benefits to reduced or no benefits if the worker is earning wages or otherwise unreasonably refuses the employer’s light-duty job offer.

The importance of carefully crafting these offers cannot be overstated. A well-drafted bona fide light-duty offer should be in writing, specify the job duties, hours, location, compensation, and how it accommodates the claimant’s restrictions. It must also be based on current medical documentation to “stick” in potential disputes. If an offer meets these criteria and is refused without valid reason, the WCB may suspend or reduce benefits.

Poorly crafted offers, conversely, can lead to litigation, extended benefits, and higher costs. Employers should collaborate with carriers, physicians, and legal counsel to ensure light-duty job offers are bona-fide and/or defensible.

Best Practices for Implementing RTW and Light-Duty Offers

To leverage claims effectively:

• Early Intervention: Engage RTW discussions soon after injury to assess light-duty options, if any.
• Documentation: Base light-duty offers on treating physician and/or IME reports to align with relevant medical restrictions.
• Communication: Provide clear written offers to all parties of interest, including the claimant, claimant’s counsel, and the Board.
• Training: Educate supervisors on accommodations to foster a supportive RTW culture.
• Monitoring: Track light-duty job offers made and litigate the claimant’s light-duty job offer refusal when/if unreasonable.

Conclusion

The 2017 amendments to New York’s Workers’ Compensation Law have reinvigorated RTW programs by introducing financial mechanisms that reward timely resolutions and discourage prolonged temporary claims. While the 2017 amendments generally provide a statutory mechanism for carriers/employers to limit prolonged temporary indemnity benefit claims, employers and carriers should also utilize light-duty job offers as an alternative means to mitigate loss and foster RTW. The light-duty job offer, when used properly, is a tool that can facilitate recovery, reduce costs, and minimize litigation.

If you are a carrier or employer and have questions regarding the use of light-duty job offers and/or how you can effectively utilize light-duty job offers in your claims handling, please feel free to contact us – we are always happy to assist.