Workers’ comp costs could spike

(March 25, 2008) Once again, the legislature is considering proposals that would dramatically increase costs for workers’ compensation and employers’ administrative burdens.

Most harmful are two attempts to increase costs by overturning some of the best safeguards of Connecticut’s workers’ compensation system. These proposals, approved by the Labor Committee and now in the Senate, are:

• SB-64 — increases workers’ compensation costs by allowing benefits for scars occurring anywhere on the body, regardless of their visibility or impact on earning capacity. Connecticut law is in line with other states that award these benefits by requiring scars to occur on visible areas on the upper portion of the body, and to have an impact on an individual's earning capacity to be compensated. This proposal reverses a key safeguard of Connecticut's workers’ compensation system that made it fairer and less costly.

• SB-255 — increases employers’ workers compensation costs by expanding the amount of additional “discretionary” benefits that can be awarded to claimants by workers’ comp commissioners. Connecticut is the only state which allows injured workers to receive money for lost wages and other compensation — plus these extra awards for any, or no reason at all. Expanding this already generous benefit will have a significant negative impact on employer costs, and that will hurt economic development and job growth.

Increasing workers’ comp benefits will put Connecticut in the same position it was in prior to when the safeguards were installed — when the state’s economy was slow and workplace costs were soaring. At that time, jobs were lost and many companies left the state. Connecticut is on the brink of those same economic conditions today. 

Efforts to significantly increase business costs are always harmful to job creation and economic growth, but in a downturn like the state is experiencing now, they can be potentially devastating to Connecticut employers.

Legislators should approve proposals that will stimulate job growth and economic development, not hurt them, so that businesses can grow their companies and continue offering well-paying jobs to the citizens of Connecticut. 

For more information, contact CBIA’s Kia Murrell at 860-244-1931 or kia.murrell@cbia.com.