Workers’ Compensation Agency (WCA) proposes new rule to address disproportionate economic impact on small businesses in Michigan.
Small business owners create the majority of new jobs in Michigan. These companies are the backbone of our economy. Protecting job creating employers from high workers’ compensation costs should be a priority.
We have been critical about workers’ compensation reform in the past. The pure premium rate has fallen more than 25% over the last several years. Projections for 2017 show another 9.3% drop. Large corporation who can afford to be self-insured have saved millions.
Injured workers have been paying the price ever since these reforms were enacted. Insurance companies can now use “wage earning capacity” to say a person is only partial disabled. This has created incredible hardship for disabled employees trying to support their families. One of our clients saw his benefits slashed to just $19 per week.
What about small business owners? Our guess is that insurance companies are just profit taking and not passing these savings on to employers. We even suggested a social media campaign using #WorkCompRefund to demand a refund for small business owners. Companies are encouraged to tweet their premium rate using this hashtag when a policy is renewed. Have they really seen a 25% decrease?
We are pleased to see the WCA propose a new rule to address disproportionate economic impact on small businesses. It calls for exempting from and modifying rules when possible. A public hearing will be held on October 14, 2016 starting at 10:00 a.m. The address is 2501 Woodlake Circle, Okemos, Michigan.
Special interest groups have pushed various agendas under the guise of protecting job creators for years. We need to protect small businesses and not just insurance companies and large self-insured corporations.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.
Related information:
Who pays for a 28% reduction in premiums?
Photo courtesy of Creative Commons, by Visual Maintenance.
