Lawmakers Act Quickly on Workers’ Compensation Fix

State lawmakers moved quickly this week to address a Connecticut Supreme Court ruling that threatened to hike workers’ compensation costs as much as 265%.

The House and Senate both approved legislation May 19 that effectively overturned the court’s controversial Gardner v. Department of Mental Health and Addiction Services ruling.

Gov. Ned Lamont signed the bill—seen as critical to address the gaps and uncertainties created by the court’s March decision—the following day.

CBIA’s president and CEO Chris DiPentima hailed the legislature’s action, “calling it a major victory for public and private sector employers across the state.”

“This fix restores balance and predictability to our workers’ compensation system,” he said.

“It sends a strong message that Connecticut is committed to supporting a stable business environment.”

Legal Precedent

The court’s Gardner ruling overturned decades of legal precedent while unravelling the key 1993 reforms that brought long-term stability to Connecticut’s workers’ compensation system.

The decision granted administrative law judges the discretion to extend temporary partial disability benefits for up to 520 weeks, even after a claimant reached maximum medical improvement.

Business and advocacy organizations warned the ruling would destabilize the workers’ compensation system, increase insurance premiums, and create unfunded liabilities for public and private employers.

A preliminary analysis by the National Council on Compensation Insurance estimated the decision could cost employers an annual $320 million in additional costs.

The General Assembly’s Judiciary Committee unanimously approved legislation last month effectively overturning the ruling.

That bill was then included in separate budget legislation addressing Medicaid payments.

‘Looming Crisis’

Judiciary Committee vice chair Rep. Jack Fazzino (D-Meriden) said the court’s ruling would cost the town of Meriden $1.2 million annually in increased workers’ compensation premiums.

“The effect that that will have on our state and our municipalities is really very radical,” he said during the May 19 House debate on the bill.

This is a major win, saving public and private sector employers from triple digit workers' comp increases and reflects the willingness of lawmakers, administration, employers, nonprofits, municipal advocates, unions, and the legal community to collaborate. https://t.co/Y8zgM3CrgQ

— Chris DiPentima (@ChrisDipentima) May 20, 2025

DiPentima said the legislation reflected “the willingness of numerous groups, including lawmakers, administration officials, employer groups, nonprofits, municipal leaders, unions, and the legal community to work together and prevent a looming crisis.”

Insurance Association of Connecticut president Eric George called the measure “a critical step in protecting employers from unsustainable cost increases.”

“It ensures that our workers’ compensation system remains fair, affordable, and focused on helping injured workers return to work,” he said.

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