The 1913 legislative session has so far raised the number of state
compensation acts in the United States to almost a score. West Virginia
was the first this year to pass such a law, which was signed by the
governor on Washington’s Birthday, though it will not go into effect
until October. It creates a pseudo-elective insurance fund contributed
by employers and employes, to be administered by a Public Service
Commission created at the same time, all administrative expenses to be
met by the state and not out of the fund. The commission shall each year
determine the premium rates of the twenty-three classifications into
which the law divides the industries of the state. Election to pay to
the fund, on the part of employer and employe—10 per cent only is to be
paid by the latter—does away with the right to go to law.
Medical benefit under the law shall not exceed $150, and funeral
expenses shall not exceed $75. The money benefits, which do not begin
till one week has elapsed, are 50 per cent of wages or wage loss for
disability. In case of death the benefits in some cases are 50 per cent
of wages and in others a sum of $20 a month for one dependent and $5
additional for each additional dependent with a maximum of $35 is
reached. Non-resident aliens are in express terms included as
beneficiaries.
In Oregon a law establishing a state accident insurance fund was passed
shortly after that of West Virginia. This is to be administered by a
commission of three whose salaries are to be paid out of the fund. The
fund is made up of contributions by employers and employes—in hazardous
occupations the former furnish twice as much as the latter in amount—to
which the state adds an initial contribution of $50,000 and one seventh
of the total amount each year thereafter.
This act like that of West Virginia is pseudo-elective, election being
presumed on both sides in default of written rejection. In case of
accidents due to failure to provide proper safeguards, however, this
election can be waived and the workman can then sue under a liability
law with the customary defenses removed. Benefits which begin
immediately are more generous than under the West Virginia law. In case
of death one surviving dependent is to receive $30 a month, with $6 for
each additional dependent up to $50; parents of a minor workman to
receive $25 a month until he would have reached his majority.
Payments for total disability are much the same as to dependents on
decease. Partial temporary disability is to be compensated for a limited
period with “that proportion of the payments provided for total
disability which his earning power at any kind of work bears to that
existing at the time of the occurrence of the injury.” Lump sum payments
may be made to beneficiaries out of the state, a provision which must
include non-resident aliens.
The Oregon law provides funeral expenses not to exceed $100 and contains
a clause, such as was defeated in the Washington law on which it was
modelled, giving the commission authority to provide first aid to
workmen entitled to benefits under the act, together with medical and
surgical expenses up to the sum of $250.
In March a further step in compensation legislation was taken by the
Ohio legislature when it established, in place of its elective law, a
compulsory state insurance fund contributed by employers in all
industries. Comment on this act by the state actuary will be published
later. According to latest reports laws were on the eve of passing in
Arkansas, Iowa, Minnesota, Nebraska and Texas.
In New York a compensation bill was passed at the close of the session.
It is pseudo-elective in form and provides benefits of 50 per cent of
the employe’s wages up to $10 a week.