Public Employee Press

Gov. Spitzer signs Workers’ Comp changes

By JANE LaTOUR

Gov. Eliot Spitzer signed legislation March 13 to implement his agreement with business, labor and legislative leaders on a major overhaul of New York State’s Workers’ Compensation system.

Reform was clearly needed in a system that charges among the nation’s highest premiums and provides among the nation’s lowest benefits. The changes to be implemented provide some gains for all sides.

The law would provide the first benefit increase in 15 years, raise weekly benefits for many injured workers, crack down on employer fraud, and limit the duration of benefits for workers classified with permanent partial disabilities.

State AFL-CIO President Denis Hughes described some of the key changes for the injured and diseased workers the system was originally set up to protect.

“Injured workers will receive an immediate benefit increase this year,” said Hughes. “In four steps, the maximum benefit will eventually reach two-thirds of the average weekly wage, and be indexed thereafter. In addition, this agreement more than doubles the minimum benefit received by injured workers, from $40 per week to $100 per week.

The maximum weekly benefit for injured workers will jump from the current $400 to $600 in 2008. In 2010, the payment will reach two-thirds of the average weekly wage and after that, the amount will be indexed, rising automatically as the average wage increases.

To avoid the current huge losses to the system through employer fraud — up to $1 billion a year — the plan includes stiff penalties. Efforts to ensure that all employers purchase compensation insurance should result in a more equitable sharing of the costs to business.

The Business Council can also point to cost savings estimated at $500 million a year through capping the duration of payments to permanent partial disability claimants, the majority of injured workers.

PPD workers who could not find jobs through rehabilitation and retraining could wind up on welfare, but proponents say the plan would make it easier for them to be reclassified as totally disabled.

The agreement includes about 30 changes. Whether injured workers and their families will be lauding the package in the years to come remains to be seen.

Meanwhile, the tally of workers’ injured or killed on their jobs remains high. Caution on the job is required. The life and livelihood you save by being careful may be your co-worker’s — or your own.