Costly workers’ comp bill approved by committee; now in Senate

(May 18, 2007) This week, the legislature’s Appropriations Committee approved a bill that will increase the costs of workers’ compensation insurance for businesses in the state. The vote was 24-18, with 13 absent (see tally). SB-847 is now awaiting action by the Senate.

Workers’ comp commissioners have the ability to award discretionary benefits as compensation to injured workers in addition to the weekly wage replacement and various other benefits available. However, currently, discretionary benefits are available only up to the amount of a claimant’s permanent partial disability (PPD) benefit.

SB-847 eliminates that limit on discretionary benefits, so that awards can be increased up to the maximum allowable amount for each type of PPD (i.e., injury award).

In eliminating the cap on these benefits, SB 847 will essentially allow workers comp commissioners to award any amount of benefits up to the scheduled benefit maximum. If that were to occur, then even relatively minor injuries could receive substantially more compensation, thereby increasing workers’ comp costs.

Still very costly
While the Appropriations Committee amended SB-847 in an apparent effort to claim they reduced the negative impact of the bill, the measure is expected to substantially increase the costs of Connecticut’s already generous benefit. All of this will be done at the expense of Connecticut businesses and municipalities.

Despite the fact that Connecticut is the only state in the nation which awards such generous discretionary benefits and we have among the highest workers’ comp costs in the United States, proposals such as SB-847 only make the situation worse.

Overall, SB-847 will repeal one of the state’s landmark workers’ compensation reforms; increase the costs of workers comp for Connecticut employers; and send a clear message to businesses in this state and elsewhere that Connecticut doesn’t value them.

For more information, contact CBIA’s Kia Floyd at 860-244-1931 or floydk@cbia.com.

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