Why you should care about increased workers’ compensation costs
As the fight for higher minimum wage rages across the country, many are saying that the “fight for $15 may lead to a hike in Workers’ Compensation costs for businesses. Companies with a large concentration of hourly employees would face increased costs from providers due to the increased insurance premiums related to such a dramatic rise in hourly wages. Workers’ Comp policy premiums are directly tied to the amount of payroll that a business pays.
Why should you care? If you are an employee who goes to work to do an honest day’s work for an honest day’s pay and get hurt, why should you be concerned with how much your employer had to pay for the Workers’ Comp insurance. After all, they are required to provide you with that insurance by law, right?
Yes, that’s true. Your employer is legally obligated to provide you with Workers’ Comp insurance in exchange for the assurance that they won’t be sued for your injuries. However, when insurance costs rise, someone is going to have to pay.
- Your employer may look more closely before approving a claim.
- The insurance carrier could be more apt to deny claims to avoid pay-outs
- Your employer may be forced to reduce the workforce to limit insurance premiums, thereby causing some employees to be laid off.
At the end of the day, it shouldn’t be your concern about the cost of Workers’ Comp insurance. However, if your employer is forced to pay for more for insurance premiums, that may impact ordinary workers in a way they never expected.
The attorneys at Team Law have extensive experience helping to expedite our clients’ Workers’ Compensation issues. If your claim is being held up by your employer or anyone else, contact us today to take action and get the money you deserve. We’re waiting to help.