Employers fear some of the changes to workers compensation

Staff Writer April 3, 2009

The recently proposed changes to the state’s workers’ compensation program have caused some disturbance among California employers and insurers. The government has put forth some reforms that it would like to enact, which would make it easier for workers who are injured or become ill on the job to collect more benefits. Though it is reasonable to expect an employer to take care of his or her employees, the timing of this decision will cripple many small businesses.

Because local businesses have been hit so hard by the economic depression, they are struggling to pay their current bills. If they have to provide more benefits, especially to those workers who become permanently disabled, insurers backing the benefits will have to charge stiffer rates. Insurers worry that they will lose their coverage over these smaller businesses, because they will be unable to pay the higher fees, when they are already barely keeping afloat.

The attorneys of insurance agencies and businesses throughout the state are working with lawmakers to find a solution that will both benefit the workers and not penalize the businesses. However, it seems inevitable that a change will take place on July 1, and may not necessarily be in the employers’ and insurers’ favor.