Sec. 1. 39-A MRSA §106, as amended by PL 1995, c. 694, Pt. D, §63 and affected by Pt. E, §2, is further amended to read:

§106. Invalidity of waiver of rights; claims not assignable

No agreement by an employee, unless approved by the board or by the Commissioner of Labor, to waive the employee's rights to compensation under this Act is valid. No claims for compensation under this Act are assignable or subject to attachment or liable in any way for debt, except for the enforcement of a current support obligation or support arrears pursuant to Title 19-A, chapter 65, subchapter II 2, article 3 or Title 19-A, chapter 65, subchapter III, or 3; for reimbursement of general assistance pursuant to Title 22, section 4318; or for reimbursement to a 3rd party for compensation pursuant to a disability income protection plan or other contractual agreement pursuant to section 107.

Sec. 2. 39-A MRSA §107, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended by adding at the end a new paragraph to read:

If an injured employee has received compensation from a 3rd party based on a preexisting contractual agreement with the 3rd party, including, but not limited to, a disability income protection plan, the employee may assign the employee's claim for compensation and benefits under this Act to the 3rd party if the amount of compensation assigned to the 3rd party is no more than the compensation received by the employee from the 3rd party and if the assignment is in writing and signed by the employee.

SUMMARY

This bill allows an employee who receives payment from an income protection plan or other contractual agreement for an injury to assign the employee's workers' compensation claim to the 3rd party providing payment under that income protection plan or contractual agreement. The bill limits the amount of assignment of the claim to the amount of compensation received under the income protection plan or other contractual agreement, and specifies that the assignment must be in writing and signed by the employee.