Montemaggi Law - Workers Compensation Attorneys


12 Mar 2015

Watch Out! Employers May Be Trying a New Trick To Control Your Benefits

Posted by Paul J. Antonowicz

I am posting a disturbing article about proposed legislation in Tennessee that would allow employers to "opt-out" of the official Workers' Compensation system. While cloaked in language that this would some how supposedly benefit injured workers, it appears to be an attempt to cut employer costs at the expense of injured workers. As pointed out in the article, it would remove employer's from oversight and create a situation where injured workers are almost entirely at the mercy of their employers. Of course, the fallacy of high and/or out of control costs is used to justify this idea. Apparently Texas and Oklahoma have already implemented a system like this. It appears that there is an effort to spread this to other states. It appears that the burden of paying for what these employers get out from under would fall on the taxpayers in general and the premium costs for businesses who remain within the system would go up. I also question why writing your own policy would save money for a company unless it offers much decreased benefits since the premiums are generally set taking into consideration the nature of the industry, the claims history and not every premium is the same.