2016-11 FL Leg Workers CompensationRESOLUTION NO. 2016 -11
A RESOLUTION OF THE CITY OF OKEECHOBEE, FLORIDA REQUESTING
THE FLORIDA LEGISLATURE AMEND CHAPTER 440, FLORIDA STATUTES,
TO ADDRESS THE FLORIDA SUPREME COURT'S RECENT DECISIONS
RELATED TO FLORIDA'S WORKERS' COMPENSATION SYSTEM;
PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Okeechobee has over 62 full -time employees, for which the City
provides workers' compensation insurance; and
WHEREAS, the City has paid an average of six workers' compensation claims annually the
last five years; and
WHEREAS, obtaining adequate insurance coverage for municipalities is already difficult given
that the employees range from city administration, to fire department, to police, to parks
and recreation, and to sanitation and public works, among many others; and
WHEREAS, this varied employee portfolio provides a diversity of claims and a level of
unpredictability that requires higher insurance premium rates than other organizations;
and
WHEREAS, despite the difficulty in obtaining workers' compensation coverage for its
employees, the City relies on the constructs within Florida Law to avoid the costly tort
system to address employee injuries; and
WHEREAS, the City relies on a workers' compensation system that has a cap on attorneys'
fees to prevent the unsavory and costly scenarios of paying more for the legal fees for a
workers' compensation case than the actual claim itself; and
WHEREAS, businesses of all types and sizes within our City, if faced with significantly higher
premiums for their workers compensation rates will be negatively impacted financially
which could lead to stagnated growth, hiring freezes, or worse, layoffs; and
WHEREAS, negative impacts to local businesses in the City have an equally negative impact
on City revenues and, by extension our ability to provide adequate services to the City's
residents; and
WHEREAS, on April 28, 2016, the Florida Supreme Court, in the matter of Castellanos v. Next
Door Company, held that a strict cap for plaintiff's attorneys' fees provided by Section
440.34, Florida Statutes, was unconstitutional; and
WHEREAS, on June 9, 2016, the Florida Supreme Court, in the matter of Westphal v. City of
St. Petersburg, held that a two -year period of temporary total disability benefits in
Section 440.15, Florida Statutes, is unconstitutional; and
WHEREAS, the Florida Legislature has not yet taken any action to address these now -
deemed unconstitutional Sections of Chapter 440, Florida Statutes; and
RESOLUTION No. 2016 -11 PAGE 1 OF 2
WHEREAS, the Florida Office of Insurance Regulation has recently approved the proposed
workers' compensation premium increase of 14.5 percent effective December 1, 2016;
and
WHEREAS, any workers' compensation rate increase above normal annual growth or
transition into a tort system for workers' injuries would negatively impact the City of
Okeechobee's budget and, by extension, services to the community.
NOW, THEREFORE, be it resolved before the City Council for the City of Okeechobee, Florida;
presented at a duly advertised public meeting; and passed by majority vote of the City Council;
and properly executed by the Mayor or designee, as Chief Presiding Officer for the City:
1. The foregoing recitals (whereas clauses) are incorporated herein by reference and
adopted in support of the matters set forth in this Resolution and made part hereof.
2. The City of Okeechobee implores the Legislature to amend Chapter 440, Florida
Statutes, to ensure that it is constitutionally valid, including: creating a cap on
attorneys' fees for workers compensation claims that, if necessary, allows limited
judicial discretion; and
3. BE IT FURTHER RESOLVED, that the City of Okeechobee implores the Florida
Legislature to consider the impacts of any modifications to the workers'
compensation system on local governments (in addition to the impacts on the private
sector) and engage local government leaders in the decision making processes so
that the voices of our constituents might be heard in the midst of the debate.
4. All Resolution or parts of Resolutions in conflict herewith are hereby repealed.
5. If any section, subsection, sentence, clause, phrase or portion of this Resolution, or
application hereof, is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion or provision and such holding shall not affect the
validity of the remaining portions or applications here.
6. This Resolution shall take effect immediately upon adoption.
INTRODUCED AND ADOPTED in Regular Session this 13th day of December, 2016.
ATTEST:
Lane
is m f' iluti T t-,
amiotea, CMG, City Clerk
REVIEWED FOR L.,EG L SUFFICIENCY:
John R. Cook, City Attorney
RESOLUTION NO. 2016 -11 PAGE 2 OF 2
James E. Kirk, Mayor