Quote of the day
"Given 97 percent of all injured workers fall within the new maximum benefit range, it means these employees are receiving up to 67 percent of their gross pre-injury wages. Since temporary disability benefits are not taxable and these same employees also fall within the 15 percent to 25 percent tax bracket, the net result is they are receiving up to 89 percent of their pre-injury wages. This provides very little incentive for an injured employee to return to work anytime soon."
Jeff Cruz, Barney & Barney LLC
Financial Benefits to Employers of Return-to-Work Programs
According to a recent study by the California Workers Compensation Institute, 97 percent of injured employees who receive temporary disability benefits get two-thirds of their pre-injury earnings, in large part due to the passing of AB 749 in 2002. With the rapidly increasing indemnity benefits being paid in California, a good return-to-work program can have a dramatic impact on reducing an employer’s cost of insurance. By Jeff Cruz via San Diego Daily Transcript
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Maryland Workers’ Comp Bill Targets Auxiliary Cops
Three Maryland Republican legislators announce that they plan to introduce a bill to provide auxiliary police officers with workers’ compensation insurance for job-related injuries. The proposal is a response to a legal dispute over workers’ compensation benefits for an auxiliary officer who lost his leg while volunteering at an accident scene last year. By Melissa Harris, Baltimore Sun
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NCPA Policy Digest: Response to Wal-Mart Critics
Critics of Wal-Mart’s health plans need to understand that workers, not employers, ultimately pay for employer-sponsored health coverage, indirectly through reduced wages and direct contributions, and employers who sponsor health coverage are merely providing a portion of workers’ compensation in the form of a noncash, tax-free benefit. National Center for Policy Analysis – Daily Policy Digest
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Opinion: Unintended Consequences of Oregon Ballot Measure
Measure 42 on the November ballot in Oregon would prohibit insurance companies from using credit scores to calculate premiums. While the measure is presented as applying exclusively to personal lines of insurance such as automobile coverage, it potentially could apply to commercial insurance ranging from commercial property to workers’ compensation. Register-Guard (Eugene, Ore.)
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Saskatchewan WCB Proposes Stable 2007 Rates
The Saskatchewan Workers’ Compensation Board is proposing to hold employer premium rates for 2007 at the average 2006 level of $1.84 (approx. $1.61 USD) per $100 (approx. $88 USD) of payroll, the WCB said Tuesday. Approximately two-thirds of the 33,000 WCB-registered employers would be assessed lower premiums, or have no changes in their premiums for 2007. Leader-Post (Regina)
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Should You Hire an Independent Contractor?
Forbes discusses the pros and cons of hiring independent contractors, including what can happen when an independent contractor applies for workers’ compensation benefits. Forbes
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Pricey New Cans Could Cut Comp Costs
Although Sarasota County, Fla.’s 120,000 new garbage cans will cost taxpayers $6 million, the new “toter” cans are expected to cause workers’ compensation claims to drop: two-person crews typically lift at least 20 tons of trash a day, causing frequent injury claims, according to the county’s manager of solid waste collections. By Doug Sword, Sarasota Herald Tribune
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