An Act Regarding Workers' Compensation Liens
Maine Legislature, Session 129, LD 1095
Committee: Labor and Housing
Sponsors: BELLOWS, SYLVESTER
Amends: 39-A MRSA §107

Legislative Document
No. 1095
S.P. 327
In Senate, March 5, 2019
An Act Regarding Workers' Compensation Liens
Reference to the Committee on Labor and Housing suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BELLOWS of Kennebec.
Cosponsored by Representative SYLVESTER of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  39-A MRSA §107, 2nd ¶, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read:
If the injured employee elects to claim compensation and benefits under this Act, any 
employer having paid the compensation or benefits or having become liable for 
compensation or benefits under any compensation payment scheme has a lien for the 
value of compensation paid on any damages subsequently recovered against the 3rd 
person liable for the injury, except that the value of the lien may not exceed the value of 
damages received by or on behalf of the employee that are attributable to compensation 
for past or future medical treatment and loss of income or earning capacity. If the 
employee or the employee's beneficiary fails to pursue the remedy against the 3rd party 
person within 30 days after written demand by the employer, the employer is subrogated 
to the rights of the injured employee and is entitled to enforce liability in its own name or 
in the name of the injured party, the accounting for the proceeds to be made on the basis 
provided.
Sec. 2.  39-A MRSA §107, last ¶, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read:
If the employer recovers from a 3rd person damages in excess of the compensation 
and benefits paid, or for which the employer has become liable, that are attributable to 
compensation for past or future medical treatment and loss of income or earning capacity, 
then any excess must be paid to the injured employee, less a proportionate share of the 
expenses and cost of actions or collection, including reasonable attorney's fees. 
Settlement of any such subrogation claims and the distribution of the proceeds therefrom 
must have the approval of the court in which the subrogation action is pending or to 
which it is returnable; or if not in suit, of the board. When the court in which the 
subrogation action is pending or to which it is returnable is in vacation, the judge of the 
court, or, if the action is pending in or returnable to the Superior Court, any Justice of the 
Superior Court has the power to approve the settlement of the action and the distribution 
of the proceeds therefrom.  The beneficiary is entitled to reasonable notice and the 
opportunity to be present in person or by counsel at the approval proceeding.
SUMMARY
When a worker suffers an injury or death that is eligible for workers' compensation 
benefits under the Maine Workers' Compensation Act of 1992 and that is sustained under 
circumstances that create legal liability for a 3rd person, the injured employee may either 
claim workers' compensation benefits or seek damages in a civil suit against that 3rd 
person to recover damages.  Under current law, if the injured employee chooses to claim 
workers' compensation benefits from the employer, the employer has a lien on any 
damages subsequently recovered against that 3rd person in the civil action for the value 
of workers' compensation benefits paid.
This bill limits the amount of the lien of the employer of the injured or deceased 
employee to only the value of damages received by or on behalf of the injured or 
deceased employee that are attributable to compensation for past or future medical 
treatment and loss of income or earning capacity.