Sec. 1. 39-A MRSA §318, 2nd ¶, as enacted by PL 1999, c. 410, §2, is amended to read:

The hearing officer, upon motion by the petitioning party, may include a finding in the decree that the employer's refusal to pay the benefits at issue was not based on any rational grounds developed between the claim and formal hearing. Upon such a finding, the employer shall pay interest to the employee under section 205, subsection 6 at a rate of 25% per annum from the date each payment was due, instead of 10% per annum, and the employee's reasonable attorney's fees and costs.

SUMMARY

This bill requires that if a workers' compensation hearing officer finds that an employer's refusal to pay benefits was not based on any rational grounds, the employer must pay the employee's reasonable attorney's fees and costs.