ALBANY - State, labor and business officials agreed Tuesday to long awaited workers' compensation reforms to cut costs for employers and eliminate lifetime payments for “permanent partial disabilities,” while increasing checks to injured workers.
The state Business Council has argued for years that New York's highest-in-the-nation cost for the mandated insurance to protect injured workers has put the state at a competitive disadvantage.
For as long, labor unions have argued for increases in benefit checks, which have been the lowest in the nation.
The result is Tuesday's agreement that is expected to save employers $1 billion a year.
“This is a remarkable win-win situation for both workers and employers,” said Gov. Eliot Spitzer. “We've developed an approach that will achieve the twin goals of helping injured workers and improving the state's competitiveness.”
The reforms will affect new recipients. No current benefits will be cut.
The deal, pending Legislative approval, would:
€ Save employers 10 to 15 percent or more in payments. The savings will phase in and are expected to begin in July. That will put the cost paid by New York employers to the “middle of the pack” nationally and below the costs paid by employers in neighboring states, said Spitzer spokesman Darren Dopp.
€ Increase the average benefit check to injured workers by $100 to $500. A year later the average check would be $550, a year after that it would be $600 and after that it would be two-thirds of the average weekly wage in New York, currently $694. After that, the benefit will rise with the cost of living. It would be the first increase in payments to injured workers in more than a decade.
The AFL-CIO's Ed Donnelly said the deal helps injured workers after years of conflict and inaction in Albany. “Normally, these things are like pulling teeth - without ether.”
€ Enact anti-fraud measures that are expected to save $100 million a year by forcing more employers to pay into the system and prosecuting fraudulent claims. Modeled after a Florida law, the measure would empower the state to close down a construction site if the employer isn't paying its workers' compensation premiums and assessments. The measure will also investigate whether employers are accurately reflecting the risk to workers in specific jobs.
Criminal and civil penalties would also increase.
€ Eliminate the lifetime benefit in most cases for permanent partial disability. Workers will receive benefits for four to 10 years, depending on the severity of the injury. Much of the $1 billion a year in savings of the reforms will come from this measure, which affects about 7,000 workers - about 5 percent of cases. The reform is expected to save $480 million a year.
“It's a vital, fundamental first step to make New York competitive with the rest of the country,” said Kenneth Adams, president of the state Business Council. “Everybody pays workers - it's hospitals, schools ... that's why the savings are so significant.”
€ Increase the minimum benefit to $200, from $40.
€ Provide, for the first time, worker retraining to make a major effort to get injured workers back on the job.
€ Close a special state fund created for World War II veterans but which has transformed into a loophole for insurance companies to avoid paying claims.
€ Empower the state insurance superintendent to approve or reject workers compensation rate increases.
The deal was a goal of closed-door meetings for months between Spitzer, legislative leaders, the AFL-CIO labor group and the state Business Council.
For as long, labor unions have argued for increases in benefit checks, which have been the lowest in the nation.
The result is Tuesday's agreement that is expected to save employers $1 billion a year.
“This is a remarkable win-win situation for both workers and employers,” said Gov. Eliot Spitzer. “We've developed an approach that will achieve the twin goals of helping injured workers and improving the state's competitiveness.”
The reforms will affect new recipients. No current benefits will be cut.
The deal, pending Legislative approval, would:
€ Save employers 10 to 15 percent or more in payments. The savings will phase in and are expected to begin in July. That will put the cost paid by New York employers to the “middle of the pack” nationally and below the costs paid by employers in neighboring states, said Spitzer spokesman Darren Dopp.
€ Increase the average benefit check to injured workers by $100 to $500. A year later the average check would be $550, a year after that it would be $600 and after that it would be two-thirds of the average weekly wage in New York, currently $694. After that, the benefit will rise with the cost of living. It would be the first increase in payments to injured workers in more than a decade.
The AFL-CIO's Ed Donnelly said the deal helps injured workers after years of conflict and inaction in Albany. “Normally, these things are like pulling teeth - without ether.”
€ Enact anti-fraud measures that are expected to save $100 million a year by forcing more employers to pay into the system and prosecuting fraudulent claims. Modeled after a Florida law, the measure would empower the state to close down a construction site if the employer isn't paying its workers' compensation premiums and assessments. The measure will also investigate whether employers are accurately reflecting the risk to workers in specific jobs.
Criminal and civil penalties would also increase.
€ Eliminate the lifetime benefit in most cases for permanent partial disability. Workers will receive benefits for four to 10 years, depending on the severity of the injury. Much of the $1 billion a year in savings of the reforms will come from this measure, which affects about 7,000 workers - about 5 percent of cases. The reform is expected to save $480 million a year.
“It's a vital, fundamental first step to make New York competitive with the rest of the country,” said Kenneth Adams, president of the state Business Council. “Everybody pays workers - it's hospitals, schools ... that's why the savings are so significant.”
€ Increase the minimum benefit to $200, from $40.
€ Provide, for the first time, worker retraining to make a major effort to get injured workers back on the job.
€ Close a special state fund created for World War II veterans but which has transformed into a loophole for insurance companies to avoid paying claims.
€ Empower the state insurance superintendent to approve or reject workers compensation rate increases.
The deal was a goal of closed-door meetings for months between Spitzer, legislative leaders, the AFL-CIO labor group and the state Business Council.
The Citizens' Say
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CSyrell wrote on Mar 1, 2007 8:37 AM: