Bill 45 - An Act Respecting the Firefighters’ Compensation Act and the Workers’ Compensation Act

BILL 45

An Act Respecting the Firefighters’ Compensation Act and the Workers’ Compensation Act

His Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

Firefighters’ Compensation Act

1( 1) Section 3 of the Firefighters’ Compensation Act, chapter F-12.5 of the Acts of New Brunswick, 2009, is repealed and the following is substituted:

Maximum annual earnings

3( 1) The maximum annual earnings shall be set by the Commission as of the first day of January of each year and shall be an amount equal to one and one-half times the New Brunswick Industrial Aggregate Earnings.

3( 2) On and after July 1, 2024, the reference to “one and one-half times” in subsection (1) shall be read as a reference to “1.6 times”.

3( 3) Despite subsection (1), the maximum annual earnings set by the Commission under subsection (1) on January 1, 2024, shall be recalculated by the Commission for the period from July 1, 2024, to December 31, 2024, inclusive, using an amount equal to 1.6 times the New Brunswick Industrial Aggregate Earnings.

1( 2) Section 10 of the Act is repealed and the following is substituted:

Computation of compensation

10( 1) If a disablement results in a loss of earnings beyond one day, the Commission shall estimate the loss of earnings of the firefighter or former firefighter and shall, subject to this Act, pay compensation to them in an amount equal to 85% of the estimated loss of earnings.

10( 2) On and after July 1, 2024, the reference to “85%” in subsection (1) shall be read as a reference to “90%”.

1( 3) Section 12 of the Act is repealed and the following is substituted:

Limitation on compensation

12( 1) The Commission shall pay to a firefighter or former firefighter only that portion of compensation which, when combined with the amount of any remuneration received by the firefighter or former firefighter from their employer or from any employment-related source or any income replacement or supplement benefit from any source does not exceed 85% of the firefighter’s or former firefighter’s prior net earnings calculated for the same period of time as that during which compensation is paid.

12( 2) On and after July 1, 2024, the reference to “85%” in subsection (1) shall be read as a reference to “90%”.

Workers’ Compensation Act

2( 1) Section 1 of the Workers’ Compensation Act, chapter W-13 of the Revised Statutes, 1973, is amended in the definition “average earnings” by striking out “38.11, 38.2” and substituting “38.101, 38.11, 38.2”.

2( 2) Subsection 5(1) of the Act is repealed and the following is substituted:

5( 1) For the purposes of this Act, every person assisting a peace officer in arresting any person or in preserving the peace shall be deemed to be an employee of the Crown in right of the Province, and their average earnings shall be deemed to be the same in amount as their average earnings at their regular employment and shall be paid in accordance with section 38 or,

(a) if the injury or recurrence of an injury arises after the commencement of section 38.2, in accordance with that section,

(b) if the injury or recurrence of an injury arises after the commencement of section 38.11, in accordance with that section, or

(c) if the injury or recurrence of an injury arises after the commencement of section 38.101, in accordance with that section.

2( 3) Section 38.1 of the Act is amended

(a) in subsection (1) in the portion preceding the definition “average earnings” by striking out “38.11, 38.2” and substituting “38.101, 38.11, 38.2”;

(b) by adding after subsection (3) the following:

38.1( 4) On and after July 1, 2024, the reference to “one and one-half times” in subsection (3) shall be read as a reference to “1.6 times”.

38.1( 5) Despite subsection (3), the maximum annual earnings set by the Commission under subsection (3) on January 1, 2024, shall be recalculated by the Commission for the period from July 1, 2024, to December 31, 2024, inclusive, using an amount equal to 1.6 times the New Brunswick Industrial Aggregate Earnings.

2( 4) The Act is amended by adding after section 38.1 the following:

Computation of compensation – injury on or after July 1, 2024

38.101( 1) If a worker is injured or suffers a recurrence of an injury on or after July 1, 2024, the compensation payable under this Part shall be awarded as set out in this section.

38.101( 2) If injury or recurrence of an injury to a worker referred to in subsection (1) results in a loss of earnings beyond the day of the injury, the Commission shall estimate the loss of earnings from the injury and shall pay compensation to the worker in an amount equal to 90% of the estimated loss of earnings.

38.101( 3) Despite subsection (2), when a worker has not received remuneration from the employer or any income replacement or supplement benefit from the employer or from an employment-related source in respect of an injury by accident or recurrence of an injury by accident and the worker commences to receive compensation under subsection (2), there shall be payable to the worker only that portion of compensation which, when combined with the amount of any remuneration received by the worker from the employer or any income replacement or supplement benefit received by the worker from the employer or from an employment-related source, does not exceed 90% of the worker’s pre-accident net earnings calculated for the same period of time as that during which compensation is paid.

38.101( 4) Compensation being paid for loss of earnings shall be reviewed each year as of the anniversary date of the injury or recurrence of the injury and shall be adjusted on the basis of

(a) the worker’s average earnings previously determined by the Commission, increased by the annual percentage increase in the New Brunswick Industrial Aggregate Earnings, less any income tax and premiums under the Employment Insurance Act and contributions under the Canada Pension Plan that would be payable by the worker on those earnings, as increased, less

(b) the earnings it is estimated the worker is then capable of earning at a suitable occupation less any income tax and premiums under the Employment Insurance Act and contributions under the Canada Pension Plan that would be payable by the worker based on those earnings.

38.101( 5) For the purposes of subsection (3), at the time a review is conducted under subsection (4), the worker’s pre-accident net earnings shall be adjusted by increasing the worker’s pre-accident earnings previously determined by the Commission by the annual percentage increase in the New Brunswick Industrial Aggregate Earnings and subtracting any income tax and premiums under the Employment Insurance Act and contributions under the Canada Pension Plan that would be payable by the worker on those earnings as increased.

38.101( 6) Compensation under this section is payable until the earliest of the following events:

(a) the loss of earnings resulting from the injury by accident ceases;

(b) the worker attains the age of 65 years;

(c) the occurrence of a personal intervening condition not related to the injury by accident that has become the dominant cause of the worker’s inability to return to work or participate in rehabilitation; or

(d) the occurrence of any circumstance not related to the injury by accident that has become the dominant cause of the worker’s inability to return to work or participate in rehabilitation.

38.101( 7) Despite subsection (6), if a worker is 63 years of age or more at the commencement of the worker’s loss of earnings resulting from the injury or recurrence of an injury, the Commission shall provide compensation under this section for a period not exceeding two years following the commencement of the worker’s loss of earnings resulting from the injury or recurrence of the injury.

38.101( 8) The Commission may provide necessary medical aid to a worker under section 41 if the worker ceases to receive compensation

(a) under subsection (6) because the worker has attained the age of 65 years, or

(b) under subsection (7) because two years have elapsed since the commencement of the worker’s loss of earnings.

38.101( 9) In recognition of loss of opportunity, there shall be payable to a worker in a lump sum an award for a permanent physical impairment arising out of an injury, and the amount of the award, which shall be calculated in accordance with a rating schedule prescribed by regulation, shall be not less than  $500 and not more than the maximum annual earnings.

38.101( 10) A worker who was injured before the commencement of this section and becomes eligible for compensation under this section as a result of the recurrence of an injury is not eligible to be paid the lump sum provided for in subsection (9).

38.101( 11) The Commission may, in its discretion, pay to a worker an allowance in any amount that the Commission considers appropriate for the replacement or repair of clothing worn or damaged by reason of the worker wearing an artificial limb or appliance supplied by the Commission in respect of the injury.

2( 5) The heading “Computation of compensation – injury on or after January 1, 1998” preceding section 38.11 of the Act is repealed and the following is substituted:

Computation of compensation – injury on or after January 1, 1998, but before July 1, 2024

2( 6) Section 38.11 of the Act is amended

(a) in subsection (1) by striking out “on or after January 1, 1998,” and substituting “on or after January 1, 1998, but before July 1, 2024,”;

(b) by adding after subsection (2) the following:

38.11( 2.1) On and after July 1, 2024, the reference to “eighty-five per cent” in subsection (2) shall be read as a reference to “90%”.

38.11( 9.3) On and after July 1, 2024, the reference to “eighty-five per cent” in subsection (9) shall be read as a reference to “90%”.

2( 7) Section 38.2 of the Act is amended

(a) by adding after subsection (2.1) the following:

38.2( 2.101) On and after July 1, 2024, the reference to “eighty-five per cent” in subsection (2.1) shall be read as a reference to “90%”.

(b) by adding after subsection (2.52) the following:

38.2( 2.53) On and after July 1, 2024, the reference to “eighty-five per cent” in paragraph (2.5)(b) shall be read as a reference to “90%”.

2( 8) Section 38.22 of the Act is amended

(a) in subsection (1) by striking out “38.11” and substituting “38.101 or 38.11”;

(b) in subsection (10) by striking out “38.11 or 38.2” and substituting “38.101, 38.11 or 38.2”;

(d) in subsection (15) by striking out “38.11 or 38.2” and substituting “38.101, 38.11 or 38.2”.

2( 9) Section 38.91 of the Act is amended

(a) in subsection (1) by striking out “38.11 or 38.2” wherever it appears and substituting “38.101, 38.11 or 38.2”;

(b) in subsection (1.01) by striking out “38.11 or 38.2” and substituting “38.101, 38.11 or 38.2”.

2( 10) Section 42.5 of the Act is amended

(a) in subsection (5) by striking out “38.11 or 38.2” and substituting “38.101, 38.11 or 38.2”;

(b) in subsection (6) by striking out “38.11(14) or 38.2(5)” and substituting “38.101(6), 38.11(14) or 38.2(5)”.

2( 11) Subsection 48(1) of the Act is amended by striking out “38.11 or 38.2” and substituting “38.101, 38.11 or 38.2”.

2( 12) Paragraph 81(d) of the Act is amended by striking out “38.11(17) or 38.2(8)” and substituting “38.101(9), 38.11(17) or 38.2(8)”.

Regulation under the Workers’ Compensation Act

3 New Brunswick Regulation 82-165 under the Workers’ Compensation Act is amended in Appendix A by striking out “38.11(17) and 38.2(8)” and substituting “38.101(9), 38.11(17) and 38.2(8)”.