Concurrent Jurisdiction is a Thing of the Past in Virginia

Virginia has always been a “concurrent” jurisdiction state. "Concurrent” in this context simply means that in some states there are some injuries that are covered by both the state’s workers’ compensation law and by the federal Longshore & Harbor Workers' Compensation Act. A state that is listed as “exclusive” on the other hand has amended its workers’ compensation law with language to the effect that if you are covered by a federal workers’ compensation law then you are not covered by that state’s law.

Virginia, historically a "concurrent" state, will finally follow the likes of Florida, Hawaii, Texas, and Lousiana - other states with significant maritime industries - in making the move to the "exclusive" jurisdiction column come July 1, 2012. In part because it is the right thing to do, and also because of the lobbying efforts of many of the local maritime employers and attorneys, including Vandeventer Black's own F. Nash Bilisoly, the legislature in Virginia has just passed a bill - HB 153 - that will abolish concurrent jurisdiction in Virginia. Injured maritime workers in Virignia will no longer be able to proceed simultaenously under both the federal and state laws, but will be under the exclusive jursidiciton of the LHWCA.  

You can read more about this legisltation here, and be sure to contact us for specific information about how this significant piece of legislation will impact claims handling in Virginia. Also, stay tuned to his blog where I will continue to provide updates on the legislation with specifics about what the bill says and what the new laws will look like in the coming weeks.  

Child and Spousal Support Withholding Orders

Courts and administrative agencies may order the deduction of money from an employee’s income for payment of child or spousal support.  Income is defined as any periodic form of payment, and includes wages, salaries, commissions, bonuses, disability benefits, retirement or pension payments, interest from principle, and workers’ compensation benefits. 

Virginia employers must honor an income withholding order or notice for child or spousal support from all states and U.S. territories.  Employers must deduct the specified amount during each pay period and send it to the appropriate State Disbursement Unit (SDU). The SDU then forwards the payment to the custodial parent or spouse.

When an injured employee is receiving workers’ compensation benefits pursuant to the Virginia Workers’ Compensation Act (VWCA), the insurance carrier stands in the shoes of the employer for purposes of honoring withholding orders. The insurance carrier may, and in some cases, must garnish benefits if the employer has a valid withholding order for child or spousal support. Benefits paid pursuant to the Longshore and Harbor Workers’ Compensation Act, however, are not subject to garnishment.

The withholding order provides how much to garnish from income; however, pursuant to Virginia law, not more than 55% of the workers’ weekly benefits may be withheld.  When a workers’ compensation claim is settled, if there is an existing child or spousal support order, withholding can be made for any amount of arrearage up to 55% of the settlement proceeds.    

Therefore, it is very important to remember to advise your workers’ compensation insurance carrier, or the attorney retained to represent your interests in defense of a workers’ compensation claim, of any withholding orders or notices for an injured worker who is receiving or seeking to receive workers compensation benefits.  The insurance company is then able to withhold the appropriate amount from benefit checks and send it to the SDU for payment to the custodial parent or spouse.