Employers Promote Smart Workers' Comp Reform, Resist Higher UI Costs

Two important blog posts from AWB to highlight today.

First, Don Brunell writes that a broad employer coalition will continue to advocate for sensible reform in the state workers' compensation system. As we've noted earlier, organized labor continues to back the failed status quo. Here's the bill WashACE and others support, as Don summarizes:

...the bill's provisions would:

• allow self-insured employers and the Dept. of Labor and Industries (L&I) to establish managed care networks to deal with injured worker claims.  Though workers would still be able to choose their own doctors, the networks would deal with everything else and the fees would be negotiated in advance.
• require workers to prove their injuries were job related.
• allow employers to make lump-sum settlements with injured workers.

Despite the overwrought rhetoric from union lobbyists, there's nothing there that takes anything away from workers. To the contrary, the managed care networks would provide improved rehabilitation services and the settlement option allows claims to be settled more quickly, a clear worker benefit.

Second, despite UI tax hikes of 300 percent for some employers, legislators are considering expanding benefits this year, assuring even higher taxes in the future. From the AWB coverage of the hearing.

Although it's far from clear how much either HB 2553 or HB 2647 would cost employers, there is no doubt either would make the system more expensive.

"Yes, there are some costs that will go up because of this bill," said Karen Lee, Employment Security Department commissioner, in response to questioning from Rep. Cary Condotta, R-East Wenatchee.

HB 2553 would cost the state an estimated $43 million in 2011 and $73 million in future two-year budgets, Lee told committee members. HB 2647 would cost a little more than $13 million next year and roughly $37 million in future two-year budgets, she said.

However, officials admitted that it's difficult to predict how much additional cost would come from expanding unemployment benefits to part-time workers.

Employers believe the estimates are low. Watch these measures and let your legislator know that job creation is your top priority. And it should be theirs.