A Jefferson County Circuit Judge in the case of Nora Clower v. CVS Caremark struck down Alabama Workers’ Compensation Act on May 8. The Circuit Judge found two provisions of the Act, the $220 a week cap on benefits and the 15% cap on attorney’s fees, unconstitutional. However, because one or more provisions were found unconstitutional, the entire act is nullified.
Clower’s attorney filed suit in November 2013, stated she had injured her back on the job and was entitled to workers’ compensation benefits. According to her affidavit, Clower said she earned an average of about $335 a week for CVS, being employed there for less than a year before the injury. Under the law, workers were eligible for $220 a week in compensation for a disability once their condition has stabilized. Clower’s attorney argued that the law dated to 1987, and $220 per week was above minimum wage level and poverty level at that time. However, living costs and wages far exceed that number today.
The Circuit Judge noted that the grouping of compensated injured workers into two classes, which basically received the same benefit, makes no rational sense. “There is little credibility in telling two injured workers, both of whom are 99 percent disabled due to work injuries, that they both get $220 per week when on earns $8.50 per hour, and the other earns an annual salary of $125,000,” he wrote. Moreover, $220 a week for a family of four is more than half below the poverty line.
On the question of 15% cap on attorney fees, the Judge held that it “fails to afford due process of the law.” he also ruled that a cap on attorney’s fees is a function of the judiciary branch and not the legislative. As Clower’s attorneys argued, the system, as it existed, was set up to keep the injured workers from seeking legal assistance. Handling workers’ compensation cases were economically unfeasible for some lawyers, leaving up to 20K Alabamians each year suffering workplace injuries dependent on the insurance industry for relief.
The Judge finally went on about his understanding of the far-reaching implications of his ruling saying, “inevitably, the ruling will mean that Alabama’s taxpayers will shoulder a large measure of the burden. However, these crises are the direct result of a problem created and allowed to persist by the Legislature.” Thus the Judge is staying his order 120 days so the Alabama Legislature can correct it.
Following Florida’s two biggest workers’ compensation rulings last year, injured workers can be happy about another victory. The ruling has a tremendous impact to millions workers in Alabama. It forces the Legislature to correct a system that is failing to adequately protect the injured workers. Although Alabama is not the only state in the nation with an out-of-date workers’ comp system, case like this makes us look forward to a better future where the injured workers get the protection they deserve.
The Poirier Law Firm has recently been selected for Client’s Choice Award by Avvo. Our goal is to make sure that all of our injured workers promptly and efficiently, receive his/her necessary medical treatment. So if you or a family member have been hurt at work and have any issues with promptly receiving medical treatment, call Poirier Law today for help and for a free consultation. The Poirier Law Firm has represented injured workers for over 16 years. You deserve to have a zealous advocate in your corner!