In 1993 the Arkansas legislature, in an effort to reduce the cost of workers’ compensation insurance, passed sweeping changes to the state’s workers’ compensation laws. One of the changes provided that permanent disability benefits payable to an injured worker would be reduced by an amount equivalent to Social Security benefits received. That provision was determined by the Arkansas Supreme Court to be unconstitutional. Golden v. Westark Community College, 333 Ark. 41, 969 S.W. 2nd 154 (1998). |
Wright Labor and Employment Newsletter |
Volume II, Issue 3, Winter 2007 |
Following the Supreme Court’s 1998 decision, the Arkansas legislature rewrote the statute, eliminating the dollar-for-dollar offset, but substituting language which essentially terminated an injured party’s disability entitlement at or near age sixty-five. See Ark. Code Ann. § 11-9-522 (f). The idea was to prevent workers’ compensation from becoming a retirement supplement. The statute, as re-written, was challenged by Billy Osborne, a 61 year old severely injured employee. Mr. Osborne contended that the statute was constitutionally infirm – an equal protection violation. This constitutional argument was rejected by the Workers’ Compensation Commission; however, the Arkansas Court of Appeals recently reversed the Commission, finding § 522 (f) unconstitutional. See Osborne v. Bekaert Corporation, CA 06-537 (December 13, 2006). The Court relied on the Golden rationale, finding that the rewritten statute effectively deprived older workers of disability benefits solely because of their age. |
