An Act To Review and Restructure the Workers' Compensation System
Maine Legislature, Session 125, LD 1913
Committee: Labor, Commerce, Research and Economic Development pursuant to Joint Order, H
Amends: 39-A MRSA §205, 39-A MRSA §211, 39-A MRSA §212, 39-A MRSA §213, 39-A MRSA §214, 39-A MRSA §215, 39-A MRSA §217, 39-A MRSA §221, 39-A MRSA §301, 39-A MRSA §302, 39-A MRSA §306, 39-A MRSA §320, 39-A MRSA §322

Legislative Document 
No. 1913 
H.P. 1417 
House of Representatives, April 12, 2012 
An Act To Review and Restructure the Workers' Compensation 
System 
Reported by the Majority from the Joint Standing Committee on Labor, Commerce, 
Research and Economic Development pursuant to Joint Order, H.P. 1345. 
HEATHER J.R. PRIEST 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  39-A MRSA §205, sub-§9, ¶B, as amended by PL 2009, c. 280, §1 and 
affected by §2, is further amended to read: 
B.  In all circumstances other than the return to work or increase in pay 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 only 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 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, except that benefits paid pursuant to section 212, 
subsection 1 or section 213, subsection 1 may be discontinued or reduced based 
on the amount of actual documented earnings paid to the employee during the 21-
day period if the employer files with the board the documentation or evidence 
that substantiates the earnings and the employer only reduces or discontinues 
benefits for any week for which it possesses evidence of such earning.  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 petition the board for an 
order to reduce or discontinue benefits and 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 by a decree issued 
by a hearing officer.  The employer, insurer or group self-insurer may reduce or 
discontinue benefits pursuant to such a decree pending an appeal from that 
decree.  Upon the filing of a petition, the employer may discontinue or reduce the 
weekly benefits being paid pursuant to section 212, subsection 1 or section 213, 
subsection 1 based on the amount of actual documented earnings paid to the 
employee after filing the petition.   The employer shall file with the board the 
documentation or evidence that substantiates the earnings and the employer may 
discontinue or reduce weekly benefits only for weeks for which the employer 
possesses evidence of such earnings. 
Sec. 2.  39-A MRSA §211, as amended by PL 1995, c. 560, Pt. G, §22, is further 
amended to read: 
§211.  Maximum benefit levels 
Effective January 1, 1993, the maximum weekly benefit payable under section 212, 
or 215 is $441 or 90% of state average weekly wage, whichever is higher.  Beginning 
on July 1, 1994, the maximum benefit level is the higher of $441 or 90% of the state 
average weekly wage as adjusted annually utilizing the state average weekly wage as 
determined by the Department of Labor, whichever is higher.  If the injured employee's 
date of injury is on or after January 1, 2013, the maximum benefit level is $441 or 100% 
of the state average weekly wage as adjusted annually utilizing the state average weekly 
wage as determined by the Department of Labor, whichever is higher. 
Sec. 3.  39-A MRSA §212, sub-§1, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
1.  Total incapacity; date of injury prior to January 1, 2013.  While If the injured 
employee's date of injury is prior to January 1, 2013, while the incapacity for work 
resulting from the injury is total, the employer shall pay the injured employee a weekly 
compensation equal to 80% of the employee's after-tax average weekly wage, but not 
more than the maximum benefit under section 211.  Compensation must be paid for the 
duration of the incapacity. 
Any employee who is able to perform full-time remunerative work in the ordinary 
competitive labor market in the State, regardless of the availability of such work in and 
around that employee's community, is not eligible for compensation under this section, 
but may be eligible for compensation under section 213. 
Sec. 4.  39-A MRSA §212, sub-§1-A is enacted to read: 
1-A.  Total incapacity; date of injury on or after January 1, 2013.  If the injured 
employee's date of injury is on or after January 1, 2013, while the incapacity for work 
resulting from the injury is total, the employer shall pay the injured employee a weekly 
compensation equal to 2/3 of the employee's gross average weekly wages, earnings or 
salary, but not more than the maximum benefit under section 211. Compensation must be 
paid for the duration of the incapacity. 
Any employee who is able to perform full-time remunerative work in the ordinary 
competitive labor market in the State, regardless of the availability of such work in and 
around that employee's community, is not eligible for compensation under this section, 
but may be eligible for compensation under section 213. 
Sec. 5.  39-A MRSA §212, sub-§3, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
3.  Specific loss benefits.  In cases included in the following schedule, the incapacity 
is considered to continue for the period specified, and the compensation due is 80% of the 
after-tax average weekly wage calculated based on the date of injury subject to the 
maximum benefit set in section 211.  Compensation under this subsection is available 
only for the actual loss of the following: 
A.  Thumb, 65 weeks; 
B.  First finger, 38 weeks; 
C.  Second finger, 33 weeks; 
D.  Third finger, 22 weeks; 
E.  Fourth finger, 16 weeks; 
F.  The loss of the first phalange of the thumb, or of any finger, is considered to be 
equal to the loss of 1/2 of that thumb or finger, and compensation is 1/2 of the 
amounts specified in paragraphs A to E.  The loss of more than one phalange is 
considered as the loss of the entire finger or thumb. The amount received for more 
than one finger may not exceed the amount provided in this schedule for the loss of a 
hand; 
G.  Great toe, 33 weeks; 
H.  A toe other than the great toe, 11 weeks.  The loss of the first phalange of any toe 
is considered to be equal to the loss of 1/2 of that toe, and compensation is 1/2 of the 
amounts specified in paragraphs F and G.  The loss of more than one phalange is 
considered the loss of the entire toe; 
I.  Hand, 215 weeks.  An amputation between the elbow and wrist that is 6 or more 
inches below the elbow is considered a hand; 
J.   Arm, 269 weeks.  An amputation above the point specified in paragraph I is 
considered an arm; 
K.  Foot, 162 weeks.  An amputation between the knee and the foot 7 or more inches 
below the tibial table, or plateau, is considered a foot; 
L.  Leg, 215 weeks.  An amputation above the point specified in paragraph K is 
considered a leg; and 
M.  Eye, 162 weeks.  Eighty percent loss of vision of one eye constitutes the total loss 
of that eye. 
Sec. 6.  39-A MRSA §213, sub-§1, as amended by PL 2003, c. 52, §1, is repealed 
and the following enacted in its place: 
1.  Benefit and duration.  While the incapacity for work is partial, the employer 
shall pay the injured employee a weekly compensation as follows. 
A.  If the injured employee's date of injury is prior to January 1, 2012, the weekly 
compensation is equal to 80% of the difference between the injured employee's after-
tax average weekly wage before the personal injury and the after-tax average weekly 
wage that the injured employee is able to earn after the injury, but not more than the 
maximum benefit under section 211.  Compensation must be paid for the duration of 
the disability if the employee's permanent impairment, determined according to 
subsection 1-A and the impairment guidelines adopted by the board pursuant to 
section 153, subsection 8, resulting from the personal injury is in excess of 15% to 
the body.  In all other cases an employee is not eligible to receive compensation 
under this paragraph after the employee has received a total of 260 weeks of 
compensation under section 212, subsection 1, this paragraph or both.  The board 
may in the exercise of its discretion extend the duration of benefit entitlement beyond 
weeks in cases involving extreme financial hardship due to inability to return to 
gainful employment.  This authority may be delegated by the board, on a case-by-
case basis, to a hearing officer or a panel of 3 hearing officers.  Decisions made under 
this paragraph must be made expeditiously.  A decision under this paragraph made by 
a hearing officer or a panel of 3 hearing officers may not be appealed to the board 
under section 320, but may be appealed pursuant to section 322. 
B.  If the injured employee's date of injury is on or after January 1, 2013, the weekly 
compensation is equal to 2/3 of the difference, due to the injury, between the 
employee's average gross weekly wages, earnings or salary before the injury and the 
average gross weekly wages, earnings or salary that the employee is able to earn after 
the injury, but not more than the maximum benefit under section 211.  An employee 
is not eligible to receive compensation under this paragraph after the employee has 
received a total of 520 weeks of compensation under section 212, subsection 1-A, this 
paragraph or both.  The board may in the exercise of its discretion extend the duration 
of benefit entitlement beyond 520 weeks in cases involving extreme financial 
hardship due to inability to return to gainful employment.  This authority may be 
delegated by the board, on a case-by-case basis, to a hearing officer or a panel of 3 
hearing officers.  The board, hearing officer or panel shall make a decision under this 
paragraph expeditiously.  A decision under this paragraph made by a hearing officer 
or a panel of 3 hearing officers may not be appealed to the board under section 320, 
but may be appealed pursuant to section 321-A. 
Orders extending benefits beyond 520 weeks are not subject to review more often 
than every 2 years from the date of the board order or request allowing an extension. 
Sec. 7.  39-A MRSA §213, sub-§1-B is enacted to read: 
1-B.  Long-term partial incapacity; date of injury on or after January 1, 2013.  
After the exhaustion of benefits under subsection 1, paragraph B if the whole person 
permanent impairment resulting from the injury is in excess of 25% and if the employee 
is working and the employee's earnings, as measured by average weekly earnings over the 
most recent 26-week period documented by payroll records or tax returns, is 50% or less 
of the preinjury average weekly wage, the employer shall pay weekly compensation equal 
to 2/3 of the difference between the employee's average weekly wage at the time of the 
injury and the employee's postinjury wage, but not more than the maximum benefit under 
section 211.  In order for the employee to qualify for benefits under this subsection, the 
employee's actual earnings must be commensurate with the employee's earning capacity, 
which includes consideration of the employee's physical work capacity as determined by 
an independent examiner under section 312.  In addition, in order for the employee to 
qualify for benefits under this subsection, the employee must have earnings from 
employment for a period not less than 24 months prior to the expiration of the 520-week 
durational limit under subsection 1, paragraph B.  Compensation under this subsection 
must be paid at a fixed rate. 
While the employee is claiming or receiving extended partial incapacity benefits under 
this subsection, the employee shall complete and provide quarterly employment status 
reports and provide copies of current tax returns as early as practicable after the return is 
filed. 
The employee's entitlement to extended partial incapacity benefits under this subsection 
is determined based upon the facts that exist at the time of expiration of 520 weeks of 
benefits under subsection 1, paragraph B.  If the employee is not entitled to extended 
partial incapacity benefits upon the expiration of 520 weeks of benefits under subsection 
1, paragraph B, the employee's entitlement to partial incapacity benefits expires.  If the 
employee is entitled to extended partial incapacity benefits under this subsection, once 
the employee's earnings, as measured by average weekly earnings over the most recent 
26-week period, are equal to or greater than the preinjury average weekly wage, the 
employee's entitlement to extended partial incapacity benefits under this subsection 
terminates permanently. 
Sec. 8.  39-A MRSA §213, sub-§3-A is enacted to read: 
3-A.  Dates of injury between January 1, 2006 and January 1, 2012.  If the injured 
employee's date of injury is between January 1, 2006 and January 1, 2012, the permanent 
impairment threshold is adjusted to a whole person impairment in excess of 12%. 
Sec. 9.  39-A MRSA §214, sub-§1, ¶B, as enacted by PL 1991, c. 885, Pt. A, §8 
and affected by §§9 to 11, is amended to read: 
B.  If an injured employee's date of injury is prior to January 1, 2013 and the 
employee is employed at any job and the average weekly wage of the employee is 
less than that which the employee received before the date of injury, the employee is 
entitled to receive weekly benefits under this Act equal to 80% of the difference 
between the injured employee's after-tax weekly wage before the date of injury and 
the after-tax weekly wage that the injured employee is able to earn after the date of 
injury, but not more than the maximum weekly rate of compensation, as determined 
under section 211. 
Sec. 10.  39-A MRSA §214, sub-§1, ¶B-1 is enacted to read: 
B-1.  If an injured employee's date of injury is on or after January 1, 2013 and the 
employee is employed at any job and the average weekly wage of the employee is 
less than that which the employee received before the date of injury, the employee is 
entitled to receive weekly benefits under this Act equal to 2/3 of the difference, due 
to the injury, between the employee's average gross weekly wages, earnings or salary 
before the injury and the average gross weekly wages, earnings or salary that the 
employee is able to earn after the injury, but not more than the maximum weekly rate 
of compensation, as determined under section 211. 
Sec. 11.  39-A MRSA §215, sub-§1, as amended by PL 2007, c. 361, §1 and 
affected by §2, is further amended to read: 
1.  Death of employee; date of injury prior to January 1, 2013.  If an injured 
employee's date of injury is prior to January 1, 2013 and if death results from the injury of 
an the employee, the employer shall pay or cause to be paid to the dependents of the 
employee who were wholly dependent upon the employee's earnings for support at the 
time of the injury, a weekly payment equal to 80% of the employee's after-tax average 
weekly wage, but not more than the maximum benefit under section 211, for a period of 
weeks from the date of death. If the employee leaves dependents only partially 
dependent upon the employee's earnings for support at the time of injury, the employer 
shall pay weekly compensation equal to the same proportion of the weekly payments for 
the benefit of persons wholly dependent, as 80% of the amount contributed by the 
employee to such partial dependents bears to the annual earnings of the deceased at the 
time of injury.  If, at the expiration of the 500-week period, any wholly or partially 
dependent person is less than 18 years of age, the employer shall continue to pay or cause 
to be paid the weekly compensation until that person reaches the age of 18. 
If a dependent spouse dies or becomes a dependent of another person, the payments must 
cease upon the payment to the spouse of the balance of the compensation to which the 
spouse would otherwise have been entitled but in no event to exceed the sum of $500.00.  
The remaining weeks of compensation, if any, are payable to those persons either wholly 
or partially dependent upon the employee for support at the employee's death.  When, at 
the expiration of the 500-week period, any wholly or partially dependent person is less 
than 18 years of age, the employer shall continue to pay or cause to be paid the weekly 
compensation, until that person reaches the age of 18.  The payment of compensation to 
any dependent child after the expiration of the 500-week period ceases when the child 
reaches the age of 18 years, if at the age of 18 years the child is neither physically nor 
mentally incapacitated from earning, or when the child reaches the age of 16 years and 
thereafter is self-supporting for 6 months. If the child ceases to be self-supporting 
thereafter, the dependency must be reinstated.  As long as any of the 500 weeks of 
compensation remain, that compensation is payable to the person either wholly or 
partially dependent upon the deceased employee for support at the time of the employee's 
death, with the exception of a dependent spouse who becomes a dependent of another.  If 
a wholly dependent or partially dependent child who reaches 18 years of age is either 
physically or mentally incapacitated so as to be unable to earn a living as determined by 
the board, the payments must continue until such time as the child either dies or is no 
longer physically or mentally incapacitated from earning. 
Sec. 12.  39-A MRSA §215, sub-§1-A is enacted to read: 
1-A.  Death of employee; date of injury on or after January 1, 2013.  If an injured 
employee's date of injury is on or after January 1, 2013 and if death results from the 
injury of the employee, the employer shall pay or cause to be paid to the dependents of 
the employee who were wholly dependent upon the employee's earnings for support at 
the time of the injury a weekly payment equal to 2/3 of the employee's gross average 
weekly wages, earnings or salary, but not more than the maximum benefit under section 
211, for a period of 500 weeks from the date of death.  If the employee leaves dependents 
only partially dependent upon the employee's earnings for support at the time of injury, 
the employer shall pay weekly compensation equal to the same proportion of the weekly 
payments for the benefit of persons wholly dependent, as 2/3 of the amount contributed 
by the employee to such partial dependents bears to the annual earnings of the deceased 
at the time of injury.  If, at the expiration of the 500-week period, any wholly or partially 
dependent person is less than 18 years of age, the employer shall continue to pay or cause 
to be paid the weekly compensation until that person reaches the age of 18. 
If a dependent spouse dies or becomes a dependent of another person, the payments must 
cease upon the payment to the spouse of the balance of the compensation to which the 
spouse would otherwise have been entitled but in no event to exceed the sum of $500.00.  
The remaining weeks of compensation, if any, are payable to those persons either wholly 
or partially dependent upon the employee for support at the employee's death.  When, at 
the expiration of the 500-week period, any wholly or partially dependent person is less 
than 18 years of age, the employer shall continue to pay or cause to be paid the weekly 
compensation, until that person reaches the age of 18.  The payment of compensation to 
any dependent child after the expiration of the 500-week period ceases when the child 
reaches the age of 18 years, if at the age of 18 years the child is neither physically nor 
mentally incapacitated from earning, or when the child reaches the age of 16 years and 
thereafter is self-supporting for 6 months. If the child ceases to be self-supporting 
thereafter, the dependency must be reinstated.  As long as any of the 500 weeks of 
compensation remain, that compensation is payable to the person either wholly or 
partially dependent upon the deceased employee for support at the time of the employee's 
death, with the exception of a dependent spouse who becomes a dependent of another.  If 
a wholly dependent or partially dependent child who reaches 18 years of age is either 
physically or mentally incapacitated so as to be unable to earn a living as determined by 
the board, the payments must continue until such time as the child either dies or is no 
longer physically or mentally incapacitated from earning. 
Sec. 13.  39-A MRSA §217, sub-§8 is enacted to read: 
8.  Presumption.  If an employee is participating in a rehabilitation plan ordered 
pursuant to subsection 2, there is a presumption that work is unavailable to the employee 
for as long as the employee continues to participate in employment rehabilitation. 
Sec. 14.  39-A MRSA §221, sub-§2, ¶A, as enacted by PL 2009, c. 521, §1 and 
affected by §2, is repealed and the following enacted in its place: 
A.  "After-tax amount" means: 
(1)  For benefits paid on claims for which the date of injury is prior to January 1, 
2013, the gross amount of any benefit under subsection 3, paragraph A, 
subparagraph (2), (3), (4) or (5) reduced by the prorated weekly amount that 
would have been paid, if any, under the Federal Insurance Contributions Act, 26 
United States Code, Sections 3101 to 3126, state income tax and federal income 
tax, calculated on an annual basis using as the number of exemptions the disabled 
employee's dependents plus the employee, and without excess itemized 
deductions. In determining the after-tax amount the tables provided for in section 
102, subsection 1 must be used. The gross amount of any benefit under 
subsection 3, paragraph A, subparagraph (2), (3), (4) or (5) is presumed to be the 
same as the average weekly wage for purposes of the table. The applicable 80% 
of after-tax amount as provided in the table, multiplied by 1.25, is conclusive for 
determining the after-tax amount of benefits under subsection 3, paragraph A, 
subparagraph (2), (3), (4) or (5); and 
(2)  For benefits paid on claims for which the date of injury is on or after January 
1, 2013, the net weekly amount of any old-age insurance benefit or benefit under 
an employee benefit plan, reduced by the prorated weekly amount that would 
have been paid, if any, under the Federal Insurance Contributions Act, 26 United 
States Code, Sections 3101 to 3126, federal income and state income taxes, 
calculated on an annual basis.  The after-tax amount of any benefit subject to 
income taxes must be determined by using the maximum number of dependents' 
allowances to which the employee is entitled and the standard deduction or zero 
bracket amount applicable to the employee's filing status. 
Sec. 15.  39-A MRSA §301, first ¶, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
Proceedings For claims for which the date of injury is prior to January 1, 2013, 
proceedings for compensation under this Act, except as provided, may not be maintained 
unless a notice of the injury is given within 90 days after the date of injury.  For claims 
for which the date of injury is on or after January 1, 2013, proceedings for compensation 
under this Act, except as provided, may not be maintained unless a notice of the injury is 
given within 30 days after the date of injury.  The notice must include the time, place, 
cause and nature of the injury, together with the name and address of the injured 
employee.  The notice must be given by the injured employee or by a person in the 
employee's behalf, or, in the event of the employee's death, by the employee's legal 
representatives, or by a dependent or by a person in behalf of either. 
Sec. 16.  39-A MRSA §302, as enacted by PL 1991, c. 885, Pt. A, §8 and affected 
by §§9 to 11, is amended to read: 
§302.  Sufficiency of notice; knowledge of employer; extension of time for notice 
A notice given under section 301 may not be held invalid or insufficient by reason of 
any inaccuracy in stating any of the facts required for proper notice, unless it is shown 
that it was the intention to mislead and that the employer was in fact misled by the notice. 
Want of notice is not a bar to proceedings under this Act if it is shown that the employer 
or the employer's agent had knowledge of the injury. Any time during which the 
employee is unable by reason of physical or mental incapacity to give the notice, or fails 
to do so on account of mistake of fact, may not be included in the 90-day period specified 
computation of proper notice. In case of the death of the employee within that period, 
there is allowed for giving the notice 3 months after the death. 
Sec. 17.  39-A MRSA §306, sub-§1, as enacted by PL 1999, c. 354, §6 and 
affected by §10, is amended to read: 
1.  Statute of limitations.  Except as provided in this section, a petition brought 
under this Act is barred unless filed within 2 years after the date of injury or the date the 
employee's employer files a first report of injury as  required in section 303, whichever is 
later. 
Sec. 18.  39-A MRSA §320, 2nd ¶, as amended by PL 2003, c. 608, §13, is 
further amended to read: 
If a hearing officer asks for review, the time for appeal to the Law Court Appellate 
Division pursuant to section 322 321-B is stayed and no further action may be taken until 
a decision of the board has been made.  If the board reviews a decision of a hearing 
officer, any appeal must be from the decision of the board.  The time for appeal begins 
upon the board's issuance of a written decision on the merits of the case or written notice 
that the board denies review. 
Sec. 19.  39-A MRSA §§321-A and 321-B are enacted to read: 
§321-A.  Appellate Division 
1.  Establishment.  There is established within the board the Appellate Division, 
referred to in this subchapter as "the division." 
2.  Composition.  The division is composed of full-time hearing officers who are 
appointed by the executive director of the board to serve on panels to review decisions 
under section 318. The executive director of the board shall appoint no fewer than 3 full-
time hearing officers to serve as members of a panel.  A hearing officer may not serve as 
a member of a panel that reviews a decision of that hearing officer.  A hearing officer 
may be a member of more than one panel at the discretion of the executive director of the 
board. 
3.  Rules.  The board shall adopt rules of procedure designed to provide a prompt and 
inexpensive review of a decision by a hearing officer.  Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
§321-B.  Appeal from hearing officer decision 
1.  Procedure.  An appeal of a decision by a hearing officer pursuant to section 318 
to the division must be conducted pursuant to this subsection. 
A.  A party in interest may file with the division a notice of intent to appeal a decision 
by a hearing officer pursuant to section 318 within 20 days after receipt of notice of 
the filing of the decision by the hearing officer. 
B.  At the time of filing an appeal under this section, the appellant shall file with the 
division a copy of the decision, order or agreement appealed.  The failure of an 
appellant who timely files an appeal in accordance with paragraph A to provide a 
copy of the decision, order or agreement does not affect the jurisdiction of the 
division to determine the appeal on its merits unless the appellee shows substantial 
prejudice from that failure. 
2.  Basis.  A finding of fact by a hearing officer is not subject to appeal under this 
section. 
3.  Action.  The division, after due consideration, may reverse or modify a decree of 
a hearing officer and shall issue a written decision.  The written decision of the division 
must be filed with the board and mailed to the parties or their counsel. 
4.  Publication of decisions.  The division shall publish the decisions issued under 
subsection 3 and make them available to the public at such cost as is required to pay for 
suitable publication.  The division shall distribute copies of all written decisions to the 
State Law Library and the county law libraries. 
Sec. 20.  39-A MRSA §322, sub-§1, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
1.  Appeals.  Any party in interest may present a copy of the decision of a hearing 
officer the division or a decision of the board, if the board has reviewed a decision 
pursuant to section 320, to the clerk of the Law Court within 20 days after receipt of 
notice of the filing of the decision by the hearing officer division or the board.  Within 20 
days after the copy is filed with the Law Court, the party seeking review by the Law 
Court shall file a petition seeking appellate review with the Law Court that sets forth a 
brief statement of the facts, the error or errors of law that are alleged to exist and the legal 
authority supporting the position of the appellant. 
SUMMARY 
This bill is reported out by the Joint Standing Committee on Labor, Commerce, 
Research and Economic Development pursuant to Joint Order 2012, H.P. 1345.  It is the 
majority report of the committee. 
The bill makes several changes to the current workers' compensation law.  It does the 
following: 
1.  Eliminates the requirement that an employer, insurer or group self-insurer 
continue paying benefits to an employee during an appeal of a hearing officer decree by 
the employee; 
2.  Increases the percent of the state weekly average calculation from 90% to 100% 
for the maximum benefit level computation; 
3.  Adds a presumption that work is unavailable for a person participating in a 
rehabilitation plan ordered by the Workers' Compensation Board for as long as the 
employee continues to participate in vocational rehabilitation; 
4.  Changes the time from which the statute of limitations for filing a petition begins 
from 2 years from the date an employer is required to file a first report of injury to the 
actual date of the injury; and 
5.  Creates a new Appellate Division that consists of panels of no fewer than 3 
full-time hearing officers and gives the board authority to adopt routine technical rules of 
procedure for any review made by the newly created Appellate Division. 
The bill makes several changes for injuries incurred on or after January 1, 2013.  It 
does the following: 
1.  Changes the calculation for determining the maximum benefit amount for total 
incapacity from 80% of the employee's net average weekly wages, but not more than the 
maximum benefit, to 2/3 of the employee's gross average weekly wages, but not more 
than the maximum benefit; 
2.  Changes the calculation for determining the maximum benefit amount for partial 
incapacity from 80% of the employee's net average weekly wages, but not more than the 
maximum benefit, to 2/3 of the employee's gross average weekly wages, but not more 
than the maximum benefit; 
3.  Eliminates the permanent impairment threshold index that is presently calculated 
from an adjusted impairment threshold, based on an actuarial review of cases receiving 
permanent impairment ratings in which 25% of all cases with permanent impairment are 
expected to exceed the threshold and 75% of all cases are expected to be less than the 
threshold; 
4.  Establishes 520 weeks as the end date of benefit eligibility for permanently 
impaired individuals with partial incapacity; 
5.  Changes the eligibility requirements for extension of benefits for permanently 
impaired individuals with partial incapacity.  In order to qualify for an extension, the 
following requirements must be met: 
A.  The injured employee must have a whole person permanent impairment resulting 
from an injury in excess of 25% and the employee's earnings over the most recent 
26-week period must be 50% or less of the preinjury average weekly wage; if so the 
employer shall pay weekly compensation equal to 2/3 of the difference between the 
employee's average weekly wage at the time of the injury and the employee's 
postinjury wage, but not more than the maximum benefit allowable; 
B.  The employee's actual earnings must be commensurate with the employee's 
earning capacity as determined by an independent medical examiner; and 
C.  The employee must have earnings from employment for a period of not less than 
months prior to the expiration of the 520-week durational limit. 
In addition, compensation is at a fixed rate and may be reviewed biennially.  While the 
employee is receiving extended partial incapacity benefits, the employee must complete 
and provide quarterly employment status reports and tax returns.  If an employee's weekly 
earnings over the most recent 26-week period are equal to or greater than the employee's 
preinjury week earnings, the extension of benefits is terminated permanently.  Finally, if 
an employee does not qualify for an extension at the end of 520 weeks, the employee's 
benefits expire; 
6.  Changes the average weekly benefit for partial incapacity for an employee if the 
wages were lowered after the injury from 80% of net 2/3 of gross of the difference 
between the employee's average weekly wages received before the date of injury and 
average weekly wages received postinjury, but not more than the maximum benefit; 
7.  Changes the death benefit for dependents of an employee who were dependent 
upon the employee's earnings for support at the time of injury to a weekly payment based 
on 80% of the net of the employee's average weekly wages to 2/3 of the employee's gross 
average weekly wages, but not more than the maximum benefit; and 
8.  Shortens the time in which a notice of injury must be given from 90 to 30 days. 
The bill also establishes the calculation for determining an employee's permanent 
impairment threshold at 12% for individuals with partial incapacity for injuries incurred 
between January 1, 2006 and January 1, 2012. 
Approved: 04/11/12
LD  1913
LR 2787(01)
Fiscal Detail and Notes
This bill also changes the calculation for determining the maximum benefit amount for total incapacity and partial 
incapacity from 80% of the employee's net average weekly wages to 2/3 of the employee's gross average weekly 
wages for those injuries that occur on or after January 1, 2013.  Preliminary estimates provided by NCCI indicates that 
this provision may reduce the cost of workers' compensation benefits by approximately 0.5%.
The fiscal impact of eliminating the permanent impairment threshold index for individuals with partial incapacity and 
changing the eligibility requirements for the extension of benefits for permanently impaired individuals with partial 
incapacity beyond 520 weeks for those injuries that occur on or after January 1, 2013 can not be determined at this 
time.  According to a preliminary analysis of the proposal by NCCI the impact will depend on actual experience and 
will be reflected in future loss cost filings submitted by NCCI to the Maine Bureau of Insurance.
According to the preliminary analysis provided by NCCI, the provision in this legislation that increases the percent of 
the state average weekly wage that is used in the calculation of the maximum benefit level from 90% to 100% may 
increase the cost of workers' compensation benefits in the State by between 0.6% and 0.8%.  
Additional costs to the Workers' Compensation Board associated with establishing an Appellate Division within the 
board utilizing individuals currently serving as full-time hearing officers of the board can be absorbed within existing 
budgeted resources.
Fiscal Note
Undetermined fiscal impact - all funds
An Act To Review and Restructure the Workers' Compensation System
Fiscal Note for Original Bill
Committee: Labor, Commerce, Research and Economic Development
Fiscal Note Required: Yes
This bill amends certain provisions of the Maine Workers' Compensation Act of 1992 as well as certain procedures of 
the Workers' Compensation Board.  Although a preliminary analysis conducted by the National Council on 
Conpensation Insurance, Inc. (NCCI) provides estimated fiscal impacts on certain specific changes in this legislation, 
the fiscal impact of other changes could not be determined until a more comprehensive analysis is performed.
LR2787(01) - Fiscal Note - Page 1 of 1