WashACE Blog

Congratulations are due all around on workers' compensation reform

House Bill 2123, the workers' compensation compromise bill, which passed the Legislature yesterday, and is on its way to Governor's desk, is the result of extreme heavy lifting by the business community, the Governor, and reform-minded legislators. Congratulations are due all around. See this morning's Seattle Times and the News Tribune for the most recent update.

AWB reports in its Fast Facts yesterday that

 House Bill 2123 is expected to prevent double-digit rate increases next year for most employers, in part by allowing for voluntary structural settlements. Organized labor denounced the plan, even though everyone from Gov. Chris Gregoire to House Speaker Frank Chopp – who had been firmly in labor’s corner – called it fair for everyone. 

While it doesn't do everything that we wanted, some success trumps no success...or as Erik Smith writes at the WashingtonState Wire and Richard Davis takes one step further, we're baby-stepping into a full workers' compensation solution. 

Here is a round-up of other reports on the legislature's recent workers' comp compromise:

Lawmakers race special session deadline in Olympia (Puget Sound Business Journal) 

AWB Statement on Workers’ Compensation Agreement (Association of Washington Business) 

Senate, House and governor announce agreement on workers’ comp (The Hopper, Senate Democrats Blog)

Statement from Speaker of the House Frank Chopp on the workers’ compensation reform (HDC Advance, Chopp Statement)

Gov. Gregoire’s statement on workers’ compensation agreement (Governor's Press Release)

Workers’ comp deal: “We have now produced what I consider to be a good system” (Capitol Record, TVW)

Lawmakers reach likely deal on workers' comp (Seattle Times)

WA leaders reach key deal on workers' comp changes (more from Seattle Times) 

Gregoire, legislative leaders reach deal on worker's comp (Political Buzz, The News Tribune)

 

 

Speaker Chopp, Let our legislators go home: Allow the House to vote on workers' comp

Make no mistake, the main thing holding the Legislature in Olympia is Speaker Frank Chopp who, in lock-step with organized labor, is setting the stage for double-digit increases in workers' comp rates. The increases will primarily hit small, locally based businesses in Washington, and the current stand-off in Olympia threatens to require a second 30-day special session.  Here are some of our regulars on the current status of work compensation reform and a budget for the upcoming 2011-13 biennium: 

House should allow vote on crucial reform, Everett Herald, and House should allow vote on workers’ comp reform, The News Tribune, Richard Davis

Something’s About to Give on Worker’s Comp – But What?, Washington State Wire, Erik Smith 

TVW takes a revealing look at Oregon's workers' comp success story, Olympia Business Watch Blog

State preps for July shutdown as budget talks stall, Associated Press, Mike Baker 

Organized labor is out-voted in the House on workers' comp reform...

...but, says Seattle Times Kate Riley, you wouldn't know it because Speaker Chopp won't let the issue come to a vote. In her editorial opinion today, Riley says Speaker Chopp needs to begin representing "all working families" (emphasis in the original) by supporting workers' compensation reforms that spur job creation and economic recovery, not just organized labor interests. She concludes, 

Citizens need lawmakers to step up and make difficult bipartisan decisions that put the state in better stead for a recovery.

Continue your calls and letters to House Speaker Chopp and urge him to bring ESH 5566 to the floor for a vote.

U.S. Chamber: Washington "poor" place for job creation, due to its state labor and employment policies

 A new study from the U.S. Chamber of Commerce, The Impact of State Employment Policies on Job Growth, reviews all 50 states for the effects of 34 key state labor and employment regulations on the unemployment rate and new business formation.

States, like Washington, that received a "poor" rating "have [labor and employment] policies that inhibit job creation in most categories...," according to the study. On the upside we have the greatest "potential to substantially increase job growth by adopting less burdensome policies."

According to the study, 

laws and regulations that inhibit the ability of workers and firms to negotiate and enforce efficient contracts raise the cost of labor, reduce employment and productivity,and slow economic growth.

The factors contributing to Washington's problematic rating include:

• Numerous labor and employment mandates that exceed federal standards
• Daily overtime rate on public construction contracts
• Very high wage ceiling for income subject to unemployment insurance tax
• Very high workers’ compensation benefits
• State minimum wage in excess of federal minimum wage
• Relatively high number of restrictions on employer inquiries into applicant and employee history
• No right-to-work protections

More reason for meaningful workers' compensation reform with passage of ESB 5566.

 

 

 

Seattle Times urges Speaker Chopp to move workers' compensation vote in the House

The Seattle Times Sunday urged House Speaker Frank Chopp to "unstick" ESB 5566, the workers' compensation reform bill backed by the governor, a bi-partisan coalition in the Senate and by the business community, saying 

This is the bill organized labor and the trial lawyers portray as an attack on workers. It is not. It is more protective of the workers than the law in most other states, and it protects all workers by stabilizing the state fund.

 Keep your calls and emails letters coming to your state representatives in support of this legislation.

Bi-partisan workers' comp reform stalls in the house as committee pursues a lose-lose solution

Bi-partisan workers' compensation reform (ESB 5566), which was passed by the state Senate a couple of weeks ago, is stalling in the House Labor and Workforce Development Committee. The House should not let union opposition block progress of this important legislation. 

According to the fiscal note for ESB 5566, "...liabilities in the accident and medical aid funds will be reduced by $1.716 billion over the first two fiscal years, while payments will increase $987.7 million, resulting in a net savings of $727.8 million over two years."

Associated Press reporter Manuel Valdes says that the, "settlement option for the state's workers compensation system would result in savings of about $1.2 billion during the next two years."

 Instead of supporting the Senate bill, the Seattle Times reports the House Labor committee introduced:

A package of bills that cover several aspects to the system. Put together, the bills aren't major overhauls, but nips and tucks to try to save money and streamline some of the process. Overall, House leadership says they're bills would save about $150 million during the next five years.

Valdes reports that:

Rep. Mike Sells, D-Everett, chairman of the House's labor committee, said he doesn't plan to give the [Senate] bill a hearing, stalling its advance. But that doesn't entirely kill the [ESB 5566] because lawmakers can procedurally bring it up for a vote on the floor later on - a hard task.

Washington State Labor Council President Jeff Johnson argues, “We do have a fundamentally sound system,” according to TVW's Capital Record.

AWB's Kris Tefft challenges this characterization of the system in his testimony before Rep. Sells committee on Tuesday.

Erik Smith of the Washington State Wire has a good overall summary and quotes from Tefft's testimony as Tefft describes bi-partisan and governor, L&I, and business-supported ESB 5566:

“It has more sideboards and protections for injured workers than any of the 44 states that allow for the voluntary settlement of claims,” he said. “In addition to being voluntary, in addition to having to wait 12 weeks after the date of injury, the agreements have to be approved by a board that is appointed jointly by business and labor, the board of industrial insurance appeals.

“In the case of the worker that has no attorney, that agreement has to be certified to be in the best interest of the worker. So the idea that these are devastating to workers, or not in their best interest, is incompatible with the design of that bill.

  “We would love to be able to talk more about it with you guys, but it apparently is not scheduled for a hearing.” 

You can see Kris Tefft's testimony in the TVW video below:

 

 

Finally, Don Brunell's statement on workers' compensation just after Senate passage of ESB 5566 still pertains:

"Workers’ compensation reform is vital to the overall health of the state and its citizens. It deserves to be a stand-alone issue and not wrapped up in the end-of-session mechanics,” concluded Brunell. “This is a good bill for workers and employers. We need to keep it moving forward."

 

Keep your calls and letters coming to your legislators, especially your representatives. Tell them to get behind ESB 5566; bypass Rep. Sells committee, if necessary, and move it directly to the floor for a vote.

 

 

News Tribune gets it right on workers' comp

The News Tribune nails it in its editorial on workers' comp. It says:

Year after year, Washington’s workers’ compensation system has lurched closer to financial collapse – even as the payroll taxes that fund it have escalated relentlessly. Year after year, the Legislature has done nothing about it.

It explains the voluntary settlement provision that labor finds so deplorable:

This proposal came from a Democratic governor, Chris Gregoire, and is supported by Lisa Brown, the Senate’s Democratic majority leader. Forty-four other states, blue and red, already offer the lump sum option; Washington is an outlier in denying workers a choice on the matter.

Pragmatic Democrats have joined Republicans and business leaders in supporting this measure for an excellent reason: It promises to help contain the costs of a system that has long been on an unsustainable trajectory.

And it concludes correctly that:

The House should let its members vote on the measure.

If you haven't already, call your representatives today and tell them it's time to move on workers' compensation reform. It's time to demand a vote on SSB 5566. 

 

Coming up next -- legislative townhalls tomorrow in districts around State

Now that we've past the first legislative cut-off, the pace in Olympia promises to quicken.

Lawmakers will be in their districts tomorrow conducting townhall meetings. Labor is mobilizing its supporters to turn out at these events. They want to kill workers comp reform and to increase business taxes in order to continue the unsustainable spending practices that have gotten us into this mess. Here are labor's talking points. 

Business owners need to turn out for these meetings, too.

Tell you legislators that higher taxes and employer costs work against economic recovery and job creation.

Here's the  Legislative Townhall Schedule as it stands currently (we will update it, as we confirm additional meetings). Please try to attend to one in your area tomorrow.

Tell your legislators that higher taxes are NOT the answer.

Tell them that we don't need more studies on workers' comp, we need action now in the House to allow injured workers to settle their claims and get back to work. Explain to them that sensible reforms, which are already working to save money in 44 other states, passed out of the Senate with strong bi-partisan support and the support of the Governor's office. Tell your representatives to get behind SSB 5566 and work to adopt it in the House, too, and send it to the Governor's desk for signature. 

New workers' comp brief is available from the Research Council

"This year lawmakers have an opportunity to adopt reforms that will restore balance to the system." So concludes the Washington Research Council in its policy brief, released today, in which it describes the three important workers' compensation system reforms before the legislature.

Richard Davis also blogged for the WRC today on the workers' comp bill that passed out of the Senate this weekend (SB 5566) saying there was "Nothing radical here. Just good public policy."

 

Workers' Comp Update and Call To Action from Don Brunell, President, AWB

The following verbatim message is from AWB President Don Brunell:

 

Senators Lisa Brown, Janéa Holmquist and Derek Kilmer have worked out a compromise workers compensation reform agreement which is currently being drafted into legislative language.  We met with Sen. Holmquist early this morning and were briefed on the legislation.  While not perfect, it is an agreement we should support.  As I indicated the language is being drafted as I write and we will provide it to you as soon as possible.   It is expected to come onto the Senate floor for a vote tomorrow.

 

ACTION:  Please contact your legislators and asked them to support the agreement which Senators Brown, Holmquist and Kilmer have developed.  You can easily contact your state senator through our website.  If you don’t know who your Senator is, just plug in your zip code and his or her name will come up with the contact information so you can e-mail or call them directly.

 

Union leaders are attempting to kill this legislation and any meaningful reform. They want to study things to death and are pushing lawmakers to punt until another day, but as you well know, we’ve punted and punted and punted……It is time to act.  Punting has been status quo for decades and it needs to change.

 

Jocelyn McCabe, our communications vice president, is developing some key bullet points which she will e-mail you as soon as we have clarification of the exact language.  Since it often takes a while to crank up our grassroots and time is critical, my ask is that you simply contact your senators immediately and ask them to support the concepts that Senators Brown, Holmquist and Kilmer have agreed to.  The watch for more from Jocelyn later today.  A SPECIAL THANKS TO SENATORS BROWN, HOLMQUIST AND KILMER IS IN ORDER.  

 

Finally, we need a strong vote out of the Senate to dislodge the House, which is not budging on reform legislation.  So far, they seem more inclined to respond to the unions.    We need your contacts to offset the union “kill” campaign aimed at the Senate.

 

Thank you and please contact Gary Chandler or Kris Tefft.  Both are doing exceptional work to help make the reforms happen.

 

ON A PERSONAL NOTE:  Senator Lisa Brown (D-Spokane), Senator Janèa Holmquist (R-Ephrata) and Senator Derek Kilmer (D-Gig Harbor) deserve a good of praise and credit for developing a bipartisan agreement.  They have taken the reforms Gov. Gregoire initiated and hammered out an agreement.  While not perfect, it is a major step in fixing a broken, costly system for employers and injured workers.   This is the most meaningful workers compensation reform movement I’ve seen in two decades.