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HF 259 Hurts Workers
In a bill dealing with Workers’ Compensation HF 259 the House Judiciary Committee voted along party lines to reward insurers that withhold benefits owed to injured workers. The Iowa Federation of Labor, AFL-CIO opposed this bill, and Democrats agreed that insurers should continue to pay 10% interest for late payment of benefits rather than reducing the interest rate to 5% as called for in the bill.
Withholding compensation payments from injured workers is often used as a coercive technique to starve workers into settlement or to scare them off from protecting their legal rights. Interest charges are one of the few incentives for insurance carriers to pay benefits on time. Cutting the interest rate on late payments will only lead to longer delays and greater financial hardship for injured workers and their families.
What you can do:
HF 259 is up for debate by the full House. Contact your Representative and urge them to vote no on HF 259.
Call: House: 515/281-3221
Write: c/o State Capitol Building, Des Moines, Iowa 50319
Email: See website at www.legis.state.ia.us
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