subject: Workers Compensation Law And Its Effect On Your Business [print this page] A labourer who loses an arm in a job related accident is legally entitled to a maximum workers compensation benefit. If the job related accident occurs in New York, the compensation would be $400 a week for 312 weeks.
However, if an injured worker's doctor is unable to cure lower back pain due to an accident, he's looking at legally receiving support payments each week for his lifetime.
The different payment schemes between permanent and non-permanent injuries came about in 1914 when the legislature passed a statute designed to control workers compensation payments. Though many injuries were listed in the law, many disabilities caused by work accidents were not covered.
Hearing loss and dismemberment are two of the injuries which have a specified duration under the law. However, other disabilities - whether permanent or partial - were not specified in the law and are therefore paid out without a set time limit. Included in these are conditions like mental strain or back trouble.
70 percent of all funds for benefit payout are directed to 13 percent of the occurring cases in this workers compensation structure. In New York, workers compensation premium is 72percent above the national average.
The result is that tax dollars are pulled away from other services such as schools and government entities in order to be paid to workers compensation claims.
Though on the opposite end of the spectrum , New York's benefit limit of $400 per week is one of the lowest in the area. Local New York governments have taken note of these disparities and have begun developing plans to address the issues.
As of now, most states have augmented their maximum amount to as much as $685.00 weekly.
Formerly one of the worst compensation systems in the country, Texas has done much to reform its guidelines as well. With recent changes, Texas is now ranked third in workers' compensation cost and first in rate of injured employees in the United States.
There was also a large problem with doctors dropping out of the program at an alarming rate. The government responded by revising the law to create new physician networks and provide a small boost in benefits paid to injured workers. The Texas system is now regarded as one of the top providers in the entire nation.
In New York, the concepts that have been introduced to the debate comprise of restricting the amount of time for benefits on permanent partial disabilities that last for ten years.
Another strategy involved increasing the maximum weekly benefit to $500. It's possible a combination of changes like these would help in the estimated reduction of premium costs by 15 percent.
It is anticipated that the government will be releasing other plans to supplement the benefits currently offered. An essential part of solving the problems with compensation benefits is to find some sort of middle ground. By setting time limits, this will also stop the lifetime benefits that were being paid in cases of back pain and injury.
California has already enacted similar reforms of its own workers compensation laws. They were able to petition the state to put the issue up for vote on the ballot. Because of the overwhelming support from the public, lawmakers were forced into taking action themselves.
Reform in New York relies on legislative leaders actively pursuing the matter because there is not an option to use a petition. It is important for local legislators to let their leaders know that this is a priority item for struggling businesses and over burdened local governments.
