Insurer Denounces OSHA Proposed Ergonomic Standards As Unlawful Expansion of OSHA Authority

SKOKIE, IL, April 18, 2000 -- Proposed federal ergonomic standards issued by the Occupational Safety and Health Administration (OSHA) are an unlawful expansion of federal authority and unprecedented intrusion into state workers' compensation systems the American Insurance Association stated in a release today at OSHA's Chicago hearing. AIA called for the deletion, in their entirety, of the illegal Work Restriction Protection (WRP) provision and related provisions on musculoskeletal disorder (MSD) coverage, MSD management and health care professionals. "Congress drew a bright line between prevention of workplace injuries and compensation for any injury," said Bruce C. Wood, AIA assistant general counsel. "By law, OSHA is limited to injury prevention and expressly prohibited from interfering with workers' compensation programs. These proposed standards directly conflict with the state-based workers' compensation system by mandating injury compensation. Every portion of the proposed regulations that would alter state laws and their underlying policies should be deleted in their entirety." According to Wood, OSHA's proposed ergonomics standard effectively creates a new federal workers' compensation scheme through the work restriction protection provisions included in the standard. This flies in the face of Section 4(b)4 of the OSH Act, which clearly states:

Nothing in this chapter shall be construed to supersede or in any manner affect any workmen's compensation law or to enlarge or diminish or affect in any other manner the common law or statutory rights, duties, or liabilities of employers and employees under any law with respect to injuries, diseases, or death of employees arising out of, or in the course of, employment. "OSHA wants to substitute its judgment on workers compensation for that of the states. And WRP is OSHA's carefully chosen euphemism for its breath-taking power grab and subversion of the workers' compensation system," Wood said. "OSHA needs to use euphemisms because it knows it is transgressing in an area Congress has preserved for the states." The workers' compensation system is our nation's oldest social insurance program, predating Social Security's enactment by almost a quarter century. It is a state-based, employer-provided insurance program that pays first-dollar coverage for an injured worker's medical treatment and wage-loss benefits. It is designed to be the "exclusive remedy" for workplace injury claims, which limits otherwise costly lawsuits to recover benefits for injuries. "The proposed regulations supersede every workers' compensation law and violate the exclusive remedy doctrine that is the foundation of the no-fault workers' compensation system," said Wood. "Employers, whose liability for workplace injuries is limited to the obligations under workers' compensation statutes, would be subject to new and uncertain liability for medical and wage replacement benefits mandated by the OSHA standard." Wood also noted that the proposed standards would not limit compensation to injuries proven to be work-related. "The OSHA proposal imposes weak standards for determining whether an injury is work-related, which is used to establish employer liability for payments," Wood said. "Every state has laws establishing legal tests for work-related injuries. OSHA's proposal would gut those laws. And WRP determinations would jeopardize an employer's defense of a subsequently filed workers' compensation claim – clear interference with workers' compensation that Congress has prohibited." Earlier this year, AIA filed formal comments on the proposed ergonomic regulations. AIA was joined on the legal brief by the Alliance of American Insurers, the National Association of Independent Insurers, American International Group, Liberty Mutual Insurance Group and UWC – Strategic Services on Unemployment & Workers' Compensation. A copy is attached. It is also available on the AIA web page at

The American Insurance Association is a trade association representing more than 300 major insurance companies which provide all lines of property and casualty insurance. AIA's headquarters is located in Washington, D.C. and the association has representatives in every state. All AIA press releases are available at www.aiadc.org.

American Insurance Association, 1130 Connecticut Ave., NW Suite 1000, Washington, DC 20036. Tel: 202-828-7100; Fax: 202-293-1219.