SB 422 Summary

• Revises how employers recover reimbursement for workers' compensation benefits paid when an injured employee sues a third party and recovers damages.

• Changes the deduction methodology so employers receive reimbursement only after deducting one-third of benefits paid by the employer from reasonable and necessary expenditures, including attorneys' fees.

• Eliminates the previous requirement that employer reductions automatically inure to the benefit of the employee; instead applies deductions uniformly regardless of which party brings the action.

• Maintains the employer's right to file a lien on any judgment or settlement received by the employee against the third party, provided written notice is given prior to judgment or settlement.

• Takes effect October 1, 2012 and amies Connecticut General Statutes Section 31-293(a).