September 2004
Workers Comp Expanded/HIPPA Enforced
By Thomas
O. Magan
Injuries sustained during off-duty volunteer charitable
activities sponsored and encouraged by an employer are
covered under the Indiana Workers Compensation Act, the
Indiana Supreme Court ruled August 25, 2004.
The plaintiff was injured when a tractor owned and driven
by a co-worker malfunctioned during an after hours service
project sponsored by his employer. This was a clean up
project at a city park on a Saturday. Notice of the
project was posted on company bulletin boards inviting
employees to participate. The company publicized the event
in the local newspaper and provided employees with work
gloves, food and beverages.
This injury arose out of employment, the Court said,
because a causal connection existed between the injury
sustained and the duties or services performed by the
injured employee. The Court considered the fact that
attendance at the clean up project was not mandatory
insignificant. The employer encouraged attendance by
posting notices of the project on the employee bulletin
board inviting employees to participate and also providing
tools and refreshments.
"The workers compensation law," the Supreme Court said,
"is to be construed broadly. If that construction is
thought to inhibit corporate participation in charitable
and community events unduly, that balance is one for the
legislature to adjust." This decision has implications for
employers throughout Indiana and to the extent that it is
persuasive, other jurisdictions as well.
Think of the projects that could be encompassed by this
ruling:
If an employer sponsors a Habitat house and then invites
its employees to volunteer, an employee injured on the
site would be covered by workers comp. If an employer
encourages participation on a company sponsored sports
team and an employee is injured, the injury would also be
compensable.
This ruling has mixed implications. If an accident is
covered by workers comp, the employee's medical bills will
be paid, the employee will be compensated for lost work
and can receive compensation for permanent impairments.
If the injury were not workers comp, the company would
undoubtedly still incur the medical costs through its
health plan and may have to compensate some of the
employee's lost wages under its disability policy. If a
fellow employee were involved, the injured employee would
also have the right to file a negligence lawsuit against
that person and seek damages for pain and suffering as
well. This is because the negligent co-worker would no
longer be protected by the "fellow servant" rule, which
bars an action against a co-worker when workers comp
applies.
Of course, the injured employee could still sue negligent
third parties not employed by the employer.
A Seattle, Washington area phlebotomist pled guilty to a
violation of HIPAA in early August for stealing a
patient's identification and running up thousands of
dollars in bills. The phlebotomist charged the terminally
ill cancer patient nearly $15,000 in bills. Although the
phlebotomist's actions violated several laws, the U.S.
Attorney prosecuted him under the patient-privacy
provision of HIPAA, a first in the United States.
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