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HomeMy WebLinkAboutCOM 0683.014 1998-2000 ~r<r os y~~ c°.''~ Stephen K. Yamashiro Jay A. Sasan Mayor Safe1) CnnrdinU(nr •i . err a..M~~~ (t~nunfg n~ ~tzfuttii DIVISION OF INDUSTRIAL SAFETY Workers' Compensation Unit 35 Wuiluku Drive Hilo, Hawaii 96720 (808) 961-8344 Fax: (BOR) 961-8416 r'~ 1 MEMORANDUM cN s TO: James Y. Arakaki Chairman Hawaii County Council FROM: Lester Ishado Deputy Corporation Counsel Workers' Compensation Unit RE: Council Approval of Workers' Compensation Settlements Memorandum dated 4/18/00 DATE: May 18, 2000 On 4/18/00, in response to the Finance Committee's inquiry about whether Council approval of workers' compensation settlements is required, we submitted a Memorandum concluding that it is not required. We noted past practices, differences between civil and workers' compensation claims, and concerns with privacy. We also stated that none of the other jurisdictions appeared to require legislative approval of workers' compensation settlements. This last statement is only partially correct. Further research indicates that Kauai County and Maui County require such approval. The following table reflects the practices for the State of Hawaii and its four counties. Comm. No. ~ ~3. G~~ File No. ~ ~tD Ref, To: Ref. Date MAY 2 3 2000 James Y. Arakaki Chairman, Hawaii County Council May 18, 2000 Page Two Jurisdiction Authority Legis. Approval Read Includes Work Comp State Secs. 41 D-3 and Not expressed. By past No 662-11, HRS practice, required for settlements in excess of $15,000.00, but only for civil settlements C&C Hon. Sec. 2-3.1 Expressly required for No settlements in excess of $5,000.00. By past practice, required only for civil settlements. Maui County Sec. 3.16.020 Expressly required for Yes settlements in excess of $3,000.00. By past practice, required for both civil and workers' compensation settlements. Kauai County Reso. 18-91 Expressly required Yes Draft 1 for settlements in excess of $10,000.00. Expressly required for both civil and workers' compensation settlements. Hawaii County Sec. 2-9 Not expressed. By past No practice, required for settlements in excess of $1,500.00, but only for civil settlements. James Y. Arakaki Chairman, Hawaii County Council May 18, 2000 Page Three The following comments should be noted: 1. As to the City and County of Honolulu, Maui County, and Kauai County, ordinances or resolutions expressly state that the Corporation Counsel may settle claims below a certain amount, and that Council approval is required for settlements in excess of said amount. 2. As to the State of Hawaii and Hawaii County, legislative approval of settlements above a specified amount is implied. Section 662-11, HRS, and Section 2-9, Hawaii County Code, expressly state that the Attorney General, and the Corporation Counsel, respectively, may settle claims below a certain amount. Both statutes are silent, however, as to whether legislative approval is required for settlements in excess of said amount, and which claims are included. By past practice in both jurisdictions, legislative approval has been required for settlements in excess of the specified amount, but only for civil settlements. The State also allows certain agencies to settle their own workers' compensation claims, e.g. DOE, UH, Judiciary, etc. Note that in the case of Harris v. Desoto, the Hawaii Supreme Court considered past practice in interpreting the ordinance and the implied power of the Council to approve settlements in its power to appropriate funds. 3. As to Kauai County, there are unique circumstances. Resolution 18-91 (which their deputy corporation counsel informs me is advisory) expressly states that Council approval is required for both civil and workers' compensation settlements. This may not be surprising when you consider that their workers' compensation claims adjustment is handled by a private company, John Mullen & Company. 4. As to Maui County, Section 3.16.020, Maui County Code, expressly states that Council approval is required for settlement of claims. The ordinance is silent, however, as to which claims are included. By past practice, Council approval has been required for both civil and workers' compensation settlements. The deputy corporation counsel indicates that the practice is under review, and may include raising the dollar amount. James Y. Arakaki Chairman, Hawaii County Council May 18, 2000 Page Four In conclusion, our opinion remains the same, i.e. that Council approval is not required for approval of workers' compensation settlements. The Council may wish to amend Section 2-g, Hawaii County Code, to expressly provide for Council approval of settlements over a specified amount, and if it wishes to require Council approval of workers' compensation settlements as well, to expressly provide the same. In the event that the Council wishes to require Council approval of workers' compensation settlements, the Council should define which types of workers' compensation settlements (PPD, "wash", etc.) are included. The Council may also wish to consider whether the dollar threshold amount should be raised. Please call me if you have any comments or questions. Thank you.