The workers’ compensation system was developed as the
sole remedy for employees injured on the job. This system acts to protect
the employer from civil liability stemming from employment related injuries.
Further, it was designed to provide workers with timely access to medical
treatment and specific payment amounts for injuries occurring in the course
of employment.
The Adjudication Division is the judicial arm of the
Industrial Commission. The Division hears, reviews and rules on cases when a
party to a claim files a complaint with the Industrial Commission. Full
evidentiary hearings are held when requested or when necessary. Hearings are
either held before a referee or the Commissioners. In their judicial
capacity, the three Commissioners function as a three-judge panel.
A majority of workers’ compensation claims are resolved
without involvement of the Adjudication Division. Cases that do require
legal intervention are either processed through a formal hearing process or
mediated through the Commission Alternative Dispute Resolution Program (ADR).
Over 1,000 complaints were filed with the Commission
during Fiscal Year 2006. During this time, only 2.2% of all industrial
accident claims were referred to the Division. There were 44,622 claims
filed with the Industrial Commission, and the Adjudication Division held 120
hearings, issued 84 decisions, and mediated 881 claims.
The Commissioner, in conjunction with Benefits
Administration, review and approve lump sum settlement agreements (LSSA).
The Commission is bound by statute to review applications for settlement to
determine whether all legal requirements are met, and to ensure the
agreement is in the "best interests of all parties." LSSA agreements may not
be approved for a number of reasons, but primarily for failing to show why
the agreement factually supports the "best interest" standard.
A secondary function of the Adjudication Division is to
settle disputes between sureties and medical providers. When a dispute
arises, either the medical provider or the sureties can challenge contested
charges and payments to the Industrial Commission for a ruling. The
Commission will evaluate the evidence and then issue a binding
administrative order to resolve the medical fee disputes.