New workers compensation rules challenged

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DES MOINES -- An injured Iowa worker has filed suit against the state, claiming that legislation containing new workers' compensation rules approved by lawmakers was constructed in a manner that violates the state's constitution.

Gertrude Godfrey of Sioux City claims in a petition filed in Polk County District Court that lawmakers unlawfully rolled the new workers' comp regulations into an economic development package along with several other provisions.

Her Des Moines attorney, Martin Ozga, said Godfrey, 63, suffered a lower back injury while working at a bakery thrift store and is seeking compensation.

The new rules, promoted by Republican lawmakers, limited an employee's ability to recover workers' compensation dollars when they have been injured on the job more than once.

The changes were included in an economic development package approved last month in a special legislative session and signed into law by Democratic Gov. Tom Vilsack.

The lawsuit accuses lawmakers of "logrolling," or including too many topics in one piece of legislation.

Republican lawmakers had insisted on reforms to Iowa's workers' comp laws, saying workers were recovering money more than once for injuries, which was driving up costs for businesses.

Democrats, unions and trial lawyers opposed those provisions, arguing they would hand businesses an unfair legal advantage in compensation cases.

"This legislation tilts the scales against injured workers," said Iowa Trial Lawyers Association executive director Scott Brown.

The group claims legislative leaders tried to roll an unpopular issue into a bill with unrelated measures that a majority of lawmakers wanted.

Matt Paul, a spokesman for Vilsack, said the expressed concerns on several occasions that the bill addressed more than one issue.

"He asked for these bills to be separate. The Legislature chose to lump them together," Paul said.

But Senate Majority Leader Stewart Iverson, R-Dows, argues that amending workers' compensation rules is an important element of an overarching issue - economic development.

He said the logrolling issue raised by the trial lawyers is "baloney."

"It's a classic case of looking out for their own pocketbooks instead of looking out for what's best for the people of Iowa," Iverson said.

The legislation at issue in the lawsuit also includes a $70 million tax break for businesses seeking to deduct equipment depreciation costs at an accelerated rate.

Lawmakers also approved a second bill during the special session that provided $100 million for economic development efforts, including Iowa Values Fund incentives. That bill would not be affected by the lawsuit.

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