§ 28-53-8. Limitations on payments to injured employees. (a) Where the director determines by experience or other appropriate accounting and actuarial methods that the reserves in the fund are insufficient to pay all claims presented or pending, the director shall petition the workers' compensation court for an order to make appropriate, proportionate reductions in the payments being made to injured employees by the fund or to suspend all payments to injured employees until such time as the reserves maintained by the fund are sufficient to resume the payment of benefits. The matter shall be heard by the chief judge. If the court determines that the monies held by the fund are insufficient to fully make payments as they fall due, the court shall issue an order directing that a proportionate reduction be made in the payments made to those employees receiving payments from the fund. In considering the fund's request for relief, the court shall give due weight to the policy of the workers' compensation act that payments are to be paid weekly and that the unwarranted reduction or interruption in the employee's weekly payment will impose financial hardship upon the injured worker.

(b) The chief judge shall hear the director's petition within twenty-one (21) days of the date the matter is filed with the court. The petition shall set forth the names and addresses of each employee who may be affected by the reduction in benefits and the court shall provide notice to each employee. The attorney general shall appear on behalf of the employees receiving benefits from the fund and shall take action as he or she feels is necessary to protect the rights of the injured employees.

(c) In the event that the court determines that a reduction or suspension of payments is necessary to maintain the fiscal integrity of the fund, the court shall schedule a mandatory review date to determine whether the financial status of the fund warrants a continuation of the order reducing payments and shall reinstitute payments only upon finding that the reserves maintained by the fund are sufficient to pay all future claims as they fall due.

(d) Payments under this chapter shall not be awarded to any injured employee or dependent if the award would directly or indirectly inure to the benefit of the uninsured employer.

(e) No payment shall be awarded when the director or the court, in its discretion, determines that unjust enrichment to or on behalf of the illegally uninsured employer would result.

(f) No interest shall be included in or added to payments under this chapter.

(g) No payments will be awarded under this chapter to an injured employee, or in the case of death of the injured employee, to person(s) presumed wholly dependent for support upon the deceased employee, as defined in § 28-33-13, in a total amount in excess of fifty thousand dollars ($50,000) plus any attorneys' fees awarded in connection with petitions for payment from the fund.

(h) Applications for payment under this chapter shall be filed with the director within the time limits set forth in § 28-35-57.

History of Section. (P.L. 2007, ch. 509, § 1; P.L. 2008, ch. 475, § 19; P.L. 2018, ch. 86, § 5; P.L. 2018, ch. 98, § 5.)