Reforming Workers Comp Laws Is Going To Aid Both Companies And Their Workforce
According to the law, if a worker loses a limb in an accident at work, he or she is then entitled to receive the maximum amount of workers compensation benefits available. In New York this benefit stands at a weekly rate of $400 for 312 weeks. It is legal, however, for a worker who suffers from incurable pain in their lower back to continue to collect benefits for his lifetime.
This discrepancy exists because of the law created in 1914 to oversee workers compensation. The law provided a chart of set amounts to be paid for typical on-the-job injuries but it did not provide a scheme for those injuries not listed.
The law specifies the duration of benefits for the loss of a limb or the loss of hearing. However, for other disabilities that aren’t mentioned within the law, whether they are partial or permanent, benefits will be paid indefinitely. Typical examples are spinal problems and emotional trauma.
Because of these oversights, the majority of payouts are made for a very small portion of workers compensation injuries. Premier workers comp in New York is 72% over the national average. Local schools, businesses and governments are feeling the pain of paying out tax dollars and premiums.
Injured workers are also negatively affected by the system because the maximum benefit is only $400 per week, which falls well below benefits given by other near-by states. Thankfully, New York governments on the local level have taken note of the discrepancy on both ends. In other states, the maximum benefit has been set as high as $685 per week.
Formerly one of the worst compensation systems in the country, Texas has done much to reform its guidelines as well. However, changes have been made to the system, it has the nation?s third-highest workers? compensation costs and the highest rate of injured employees.
To add insult to injury, Texas also once had the largest number of doctors who dropped out of the system. A small boost in benefits was given to injured workers and new networks for physicians were created. Now, Texas ranks as one of the best workers’ compensation programs in the United States.
Suggestions for overhauling New York’s workers comp have included limiting to ten years the bene
1000
fits provided for permanent partial disability. Another strategy involved increasing the maximum weekly benefit to $500. It’s possible a combination of changes like these would help in the estimated reduction of premium costs by 15 percent.
New York is hoping that other ideas will be presented and considered so they can raise the benefits for qualified injured workers even further. The clear answer to finding a solution to equalizing workers comp benefits is discovering where this middle ground is. It will also eliminate those endless payments to back pain sufferers.
California has taken the lead with its worker’s compensation laws by enacting similar types of reforms. In that state, a petition drive was launched to put the question on the ballot. The deluge of support for this petition forced the legislature to move on reform.
In New York, there is no opportunity for a petition drive. It is important to find another way to get the attention of legislators regarding workers compensation. The lawmakers at the grassroots levels must make sure that the higher legislative politicians are made to understand the financial impact on commerce and municipalities.
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