ARIZONA WORKERS' COMPENSATION SUMMARY
Rearrangement is a special situation that occurs when an unscheduled disability and LEC have become final. If the injured worker experiences a greater Loss in Earning Capacity (LEC) than awarded at closure, which is a result of the injury and there is no change in the worker's physical limitations, the worker may petition the Industrial Commission to have the LEC rearranged to reflect the changes in his/her earnings. An example of this would be an injured worker who becomes a paraplegic from the injury, the old employer rehires the worker for a job that is within the worker's limitations and an LEC determination is then made. Perhaps several years later the employer closes the business and the injured worker cannot find a job because of the limitations caused by the injury. The LEC may then be rearranged and that worker's compensation increased to reflect his or her new LEC.
The carrier/employer also has the same right to rearrange compensation for increases in the worker's earning capacity as evidenced by an increase in income reported by the worker during a year. (The worker who suffers a "permanent" loss in earning capacity must report income to the carrier/employer once per year. At that time, the carrier/employer will make a determination if the increased income is a "cost of living" increase or a raise or other increase in salary that represents an increase in earning capacity.)
As with the Petition to Reopen, the effective date for a Petition for Rearrangement is the date it is filed with the ICA in Tucson or Phoenix. The forms can be found at either office of the ICA or at our office.