05/04/2020
GEORGIA AND COVID-19 Layoffs and Reduction of Scheduled Hours
The COVID-19 pandemic continues to impact all of us both personally and professionally. Businesses which have the ability to do so have begun transitioning their employees to a work from home arrangement. Unfortunately, the hospitality industries (hotel, bars, restaurants), travel, transportation, media, and sports simply do not have the capability of having their employees work from home. This has necessitated, at best, a reduction in employee hours, and, at worst, mass layoffs so those businesses can survive.
As it relates to your business or the business of your insureds, many of your current Claimants will be requesting TTD/TPD benefits if they are laid off or their hours are reduced (or completely zeroed out) as a result of the outbreak. From a legal standpoint, if an employee’s diminution in income is not due to their work-related injury, they are not owed indemnity benefits. Therefore, if you have Claimants who were working in a modified duty position, and they are either laid off or their hours are reduced solely due to the COVID-19 pandemic, they would not be owed TTD/TPD since the diminution in income is a company-wide issue, and not related to their disability/work restrictions.
In addition, as it relates to situations in which an employee is laid off, if the separation from employment is not related to the workers’ compensation claim, the employee has the burden of showing a diligent job search under Maloney v. Gordon County Farms. In order to be owed TTD benefits, the employee must show: i) he was involved in an on-the-job injury; ii) he still has restrictions on account of that injury; and iii) he has undertaken a diligent but unsuccessful search for alternate employment. Unless and until the employee proves a diligent but unsuccessful job search, they are not owed TTD benefits.
It should also be noted that the workers’ compensation system in Georgia is constructed so an employee is not allowed to “double dip.” So, if an employee has applied and is granted unemployment benefits, they are not supposed to receive TTD benefits concurrently with unemployment benefits.
Of course, these decisions must be made on a case by case basis. Should you have questions about the entitlement to TTD/TPD on a case where COVID-19 is part of the equation, please call or email us and we’ll be happy to assist.