An Act To Authorize the Employer To Adjust Workers Compensation Benefits When the Employee Returns To Work for Another Employer
Maine Legislature, Session 123, LD 1493
Committee: Labor
Sponsors: MILLS
Amends: 39-A MRSA §102

Legislative Document 
No. 1493 
S.P.520 
March 19, 2007 
An Act To Authorize the Employer To Adjust Workers' 
Compensation Benefits When the Employee Returns To Work for 
Another Employer 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Senator MILLS of Somerset. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRSA §102, sub-§15-A is enacted to read: 
15-A. Payer. "Payer" means an employer, insurer or group self-insurer responsible 
for paying benefits to an employee for an injury covered by this Act. 
Sec. 2. 39-A MRS A §205, sub-§9, as amended by PL 1999, c. 354, §§3 and 4, is 
further amended to read: 
9. Discontinuance or adjustment of payments. The employer, insurer or group 
self insurer payer may discontinue or reduee adjust benefits according to this subsection. 
A. 
If the employee has returned to work with or has received an increase a change 
in pay earnings from an employer that is paying responsible for compensation under 
this Act, that employer or that employer's insurer or group self insurer the payer may 
discontinue or reduee adjust payments to the employee in accordance with section 
213, subsection 1. 
B. 
In all circumstances other than the return to work or increase in pay change in 
earnings of the employee under paragraph A, if the employer, insurer or group self 
insurer determines that the employee is not eligible for compensation under this Act, 
the employer, insurer or group self insurer may discontinue or reduce benefits en.Jy 
must be adjusted in accordance with this paragraph. 
(1) If no order or award of compensation or compensation scheme has been 
entered, the employer, insurer or group self insurer ~ 
may discontinue or 
reduce benefits by sending a certificate by certified mail to the employee and to 
the board, together with any information on which the employer, insurer or group 
self insurer payer relied to support the discontinuance or reduction. 
The 
employer ~ 
may discontinue or reduce benefits no earlier than 21 days from 
the date the certificate was mailed to the employee. The certificate must advise 
the employee of the date when the employee's benefits will be discontinued or 
reduced, as well as other information as prescribed by the board, including the 
employee'S appeal rights. 
(2) If an order or award of compensation or compensation scheme has been 
entered, the employer, insurer or group self insurer shall payer may petition the 
board for an order to reduce or discontinue benefits and may adjust benefits 
pursuant to section 213, subsection 1 based on reliable evidence of actual 
earnings received by the employee after the filing of the petition. The payer may 
not reduce or discontinue benefits until the matter has been finally resolved 
through the dispute resolution procedures of this Act, any appeal proceedings 
have been completed and an order of reduction or discontinuance has been 
entered by the board. 
(3) If an order or award of compensation or compensation scheme has been 
entered placing an employee on a fixed rate of partial compensation based on 
earnings of the employee that are diminished, the employee may petition the 
board for an order to increase benefits. The payer shall then adjust benefits 
.. 
I 
pursuant to section 213, subsection 1 based on reliable evidence of actual 
earnings received by the employee after the filing of the petition. 
C. 
The employee or payer may file a petition for review, contesting the employer's 
discontinuance or reduction of a change in compensation under this subsection. 
Regardless of whether the employee files a petition is filed prior to the date of the 
discontinuance or reduction change, benefits may be discontinued or reduced 
changed as described in paragraph A or B. 
D. 
The board, within 21 days after the employee filed filing of a petition for review, 
may enter an order providing for the continuation or reinstatement of benefits 
pending a hearing on the petition. The order must be based upon the information 
II 
submitted by both the empio)'er, insurer or group self insurer ~ 
and the employee 
under this subsection. Once a request for an order has been ruled upon, the matter 
may not be referred to mediation, but must be set for hearing. 
E. 
In all cases under this subsection, the board shall provide for an expedited 
procedure that must be available upon request of an)' to either party. 
F. 
If benefits have been discontinued or reduced pursuant to paragraph A or Band 
the board, after hearing, determines that benefits have been wrongfully withheld, the 
board shall order payment of all benefits withheld together with interest at the rate of 
6% a year I % a month. The employer shall pay this amount within 10 days of the 
order. 
SUMMARY 
This bill permits an employer, insurer or group self-insurer, the payer of benefits, to 
reduce compensation to an employee pending a hearing when the employee receives an 
increase in pay from an employer who is not the employer responsible for paying 
compensation. The bill obligates the payer to increase benefits when an employee on 
partial compensation sustains a loss of earnings and files a petition for increased benefits. 
The bill increases the rate of interest payable on withheld benefits from 6% a year to 1% 
a month.