16-1416 Requesting the Florida Legislature Amend Chapter 440 F.S. - Related to Workers' Compensation SystemRESOLUTION NO. 16-1416
A RESOLUTION OF THE CITY OF LONGWOOD, 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.
WHEREAS, the City of Longwood has over 155 full time employees, for which the
City provides workers' compensation insurance; and
WHEREAS, the City has paid an average of 23 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 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
Resolution No. 16-1416/Page I
WHEREAS, the Florida Legislature has not yet taken any action to address these now -
deemed unconstitutional sections of Chapter 440, Florida Statutes; and
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
Longwood`s budget and, by extension, services to the community.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF LONGWOOD, FLORIDA, AS FOLLOWS:
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.
The City of Longwood 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
BE IT FURTHER RESOLVED, that the City of Longwood, Florida 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.
PASSED AND ADOPTED THIS 5TH DAY OF DECEMBER, A.D. 2016
J e r ayor
ATTEST:
City Clerk
Approved as to form and legality for the use and reliance of the CiTy of Longwood, Florida, only.
Resolution No. 16-1416/Page 2