Urgent Action Needed to Fix Workers’ Compensation ‘Shock’

Employer groups are calling for legislative action to address a recent Connecticut Supreme Court ruling that sent shockwaves through the state’s workers’ compensation system.

CBIA and allied groups—including the Connecticut Conference of Municipalities—are urging legislators to act quickly on HB 7141, which remedies a court decision that could increase workers’ compensation claims costs as much as 265%.

The legislature’s Judiciary Committee unanimously approved the bill earlier this month and it now awaits action in the state House.

“This bill is crucial to address the gaps and uncertainties created by the court’s decision, which threatens to impose significant burdens on employers and municipalities across the state,” CBIA’s Pete Myers said.

The court’s March 18 Gardner v. Department of Mental Health and Addiction Services ruling raised widespread concerns about the stability and predictability of the workers’ compensation system.

As CBIA’s Chris Davis told the Hartford Business Journal, “the ruling has the potential to disrupt the balance between fair compensation for injured workers and the financial viability of businesses.”

‘Disrupt the Balance’

Davis emphasized the importance of enacting HB 7141 to mitigate the adverse effects of the Supreme Court ruling.

“Employers now face increased costs and administrative complexities, which could hinder their ability to operate effectively and support their workforce,” he said.

“Without legislative intervention, employers may struggle to navigate the new landscape, leading to potential job losses and reduced economic growth.”

"This is a major issue for employers," says CBIA's Chris Davis. "We’ve already seen situations where settlements have been rescinded and renegotiations have been reopened based on the ability to get more years’ worth of temporary benefits.” #workerscomp https://t.co/2CtSTqvUAH

— CBIA (@CBIANews) April 21, 2025

He added that the bill will restore stability and confidence in the workers’ compensation system, allowing businesses to continue contributing to Connecticut’s economy.

The bill also ensures the workers’ compensation system remains fair and equitable for all parties involved.

It provides supplemental payments and benefits to individuals with partial permanent disabilities and permits awards to be distributed to the next of kin of a deceased employee who was unmarried and without dependent children at the time of death.

CBIA urges member companies to contact their legislators and the Governor’s office to urge immediate action.

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For more information, contact CBIA’s Pete Myers (860.244.1921).