Ten years ago business and labor got together on what was announced as an historic update to our state’s costly and woefully outdated workers’ compensation system. While significant reforms were made then, a decade’s worth of hindsight has shown that our comp system remains expensive, slow, a costly burden on employers and ill-equipped at serving injured workers. In short, comp is in crisis. With costs reaching more than $10 billion per year, and municipalities shouldering an increasing financial burden, the time to reform comp has come again.
Thankfully, earnest and meaningful discussions are occurring among the interested parties and there is a real chance we could see something done as part of this year’s budget. We believe that significant cost savings can be achieved without impacting wage replacement or medical care for injured workers. In fact, our recommendations would ensure that the most severely injured employees receive the compensation they deserve. Our aim is to fix a system that relies on outdated impairment guidelines as the basis for issuing high payments to employees who are missing little or no time from their jobs. Meanwhile, severely injured workers are at the mercy of a system that stretches out hearings for months and final judgement for years.
The facts are clear; ninety percent of upstate business leaders want to see real, meaningful changes to the workers’ comp system, lawmakers from both sides of the aisle and from both houses are pushing for reform, and all sides recognize changes need to be made.
We’re proud to be a part of a growing coalition made up of more than 200 municipal groups, business organizations and other trade associations and businesses calling for commonsense reforms that will put New York more in line with our fellow states and make our state more competitive.
Reforming workers’ compensation and developing a better system that protects injured workers, while eliminating, outdated, and unnecessary cost drivers, will be a boon for New York State and help spur job creation, foster economic development, and lower property taxes. We urge inclusion of these cost-saving measures in this year’s final enacted budget.