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Vocational Assistance Program

Overcoming limitations for injured workers

Insurers provide vocational assistance, usually through professional rehabilitation organizations, to overcome limitations that prevent injured workers from returning to suitable work. In 1987, the Legislature passed House Bill 2900, which significantly restricted eligibility for vocational assistance by introducing a new test, the substantial handicap test. The substantial handicap test means that injured workers are eligible for vocational assistance only if a permanent disability prevents re-employment in any job paying 80 percent or more of the worker’s wage in the job at injury. In 1995, SB 369 further restricted eligibility for vocational assistance for aggravation claims. Effective January 2010, HB 2705 explained that insurers no longer need to determine eligibility for vocational assistance for workers released to regular work. Because of these legislative changes, far fewer workers have been eligible for vocational assistance.

Benefits available under vocational assistance include professional rehabilitation services such as training plan development, counseling and guidance, and placement. Benefits also include purchases of goods and services, such as tuition, and temporary disability while the worker is actively engaged in training. Under current law, the typical eligible worker is entitled to a training plan followed by placement (direct employment) services.

Eligible workers are not required to use vocational assistance benefits. Since at least 1987, less than one-half of eligible workers have begun a training plan following their eligibility determination. From 1995 to 2000, less than one-third of workers completed their training plans. Completion of a training plan means placement in a job or receipt of maximum services. Since then, the percentage of those completing their plans continues to decline. In 1990, the claim disposition agreement (CDA) was first permitted. With CDAs, workers release their rights to vocational assistance programs and other indemnity benefits in exchange for lump-sum settlements from insurers. Since 2002, about 50 percent of eligible claims have ended with a CDA.


Vocational assistance

Year Voc Total determinations Voc Eligible determinations Voc Ineligible determinations Voc Total eligibility closures Voc Eligibility closed, no plan Voc Eligibility closed, direct employment plans Voc Eligibility closed, training plan
Vocational Assistance
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