Worker's Compensation Second Injury Fund
Some states participate in the Second Injury Fund which gives employers an opportunity to limit their compensation costs in the event that an impaired employee sustains a Workers Compensation injury which leaves him/her more disabled than the same injury would leave a non-impaired worker. The workers original impairment can be of any type or cause - work related or not - as long as it is a permanent impairment and is serious enough to pose an obstacle to the worker in obtaining employment.
The intent of the Second Injury Fund is to equalize the compensation costs that the employer and his insurance company must pay for impaired and non-impaired workers alike, thereby removing a potential barrier to the employment of impaired workers.
At the time of hire - or as soon after hire as the information becomes known to you make note in writing of your knowledge of the employees impairment. In the event of a Second Injury Fund claim in the future, this written record will need to be produced as evidence that you knew of the workers impairment prior to the subsequent injury. The written record can take any form you wish (e.g. pre-placement physical examination report, a memorandum to the personnel file, interview notes signed and dated by the interviewer, or a letter from a rehabilitation counselor who knew the worker) as long as:
- the information is recorded in writing
- the record clearly identifies the employer, employee and the date that the record was created
- the record presents information about the worker's impairment and the limitations caused by the impairment
Generally this is the only step that the employer needs to take. In the event that the impaired worker becomes seriously disabled from a Workers Compensation injury in the future, the insurance company will initiate the process of applying to the Second Injury Fund and, as part of this, will ask the employer for a copy of this record. If the record is not available, the case will not be eligible for reimbursement from the Fund.
As in all Worker's Compensation matters, each state administers their own program withing their borders. Requests for specific information by state should be directed to that state's Worker's Compensation Administrative offices.