Much of the popular press has focused on the question of whowill win the White House on Nov. 8, but the election could have abroader, ripple effect on workers' compensation issues.

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For example, several states have initiatives on their ballotsthat would legalize marijuana for medical or recreational use. It'sunclear what effect legalization will have on workers' compensationclaims.

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For now, five states have already ordered reimbursement ofmedical marijuana, which isn't a major cost driver —yet, says Mark Walls, vice president, communications andstrategic analysis, for St. Louis-based insurer SafetyNational.

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More significantly, the national election is likely to affectthe overall direction of the U.S. Department of Labor.

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Walls points to recent a report from the Labor Department,"Does the Workers' Compensation System Fulfill ItsObligations to Injured Workers?," which is critical of stateworkers' compensation systems, and describes the findings as"sounding an alarm" that state systems fail to provide injuredworkers with adequate benefits.

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The report stopped short of making recommendations for immediateaction, Walls says, but it does hint at the development of federalminimum standards for workers' compensation benefits and thepenalties associated with them. Future policy developments inworkers' comp could well depend on the next secretary of Labor.

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Effect on OSHA enforcement, too

"In addition, a change in leadership in the White House andCongress could result in a shift in the overall direction of otheremployment laws and regulations, including (Occupational Safety andHealth Administration) enforcement, which is a majorcomponent of worker's comp issues," observes Walls.

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The direction and enforcement by the Labor Department of theAmericans with Disabilities Act and Family and Medical Leave Actregulations, as well as other absence-based programs that also tieinto workers' comp, also could shift.

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"The presidential election does have an effect on workers'compensation," Walls says. "There is a ripple effect. All thesethings tie into together."

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State elections are also important, Walls adds.

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"Newly elected governors will appoint state insurancecommissioners and workers' comp administrative judges," he pointsout, "and in some states, voters will elect new insurancecommissioners directly." There are several areas affecting workers'comp in which the election will have an effect, and voters need tobe aware of those issues as they cast their ballots on Nov. 8.

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The effect of the election results on workers' compensationlikely won't be felt immediately, but action or proposals could beseen as early as January.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].