They’re out to sandbag workers’ comp – again!

By David Groves

In November, voters in this state overwhelmingly rejected a business-funded initiative to privatize Washington’s public workers’ compensation system. Despite a well-funded advertising campaign aimed at undermining support for our state-run system and portraying it as costly and inefficient, voters saw through the smokescreen. By a remarkable margin of more than 18 percentage points, that measure was rejected.

 A national study pegs our state as ranked 36th in the nation in terms of costs to employers and among the highest in terms of benefits. Voters decided to maintain this strong safety net for injured workers with low costs to employers. It was a resounding vote of confidence in our state-run system.

 But never underestimate the tenacity and influence of powerful business lobbying groups in Olympia.

Just months after this vote, business lobbyists are again circling the Capitol campus and have succeeded in convincing many lawmakers from both parties, including Gov. Chris Gregoire, that the system costs too much and its benefits must be cut.

 They have zeroed in on an area of legitimate concern within the system: the rising incidence and costs of permanently disabling injuries and long-term disability benefits. Naturally, their solution is to cut benefits -- and their cuts target older workers, in particular.

 The governor has proposed SB 5566, a workers’ compensation “reform” initiative that includes some ideas that organized labor and other advocates for injured workers support. However, it also includes two horrible ideas that punish older injured workers:

 It cuts off benefits for injured workers on long-term disability when they reach Social Security retirement age. Many of these people have suffered disabling injuries that have prevented them from working for years, which means they haven’t been paying into the Social Security system. Therefore, they are likely to get less than the average benefit of less than $1,100 a month. Social Security does not replace workers’ comp benefits and will create major hardships for these injured workers.

Allowing employers to make lump-sum settlements to long-term disabled workers over the age of 55. In states that allow these “starve-and-settle” deals, employers can appeal a claim and drag out the process so financial pressures mount for the injured worker's family, which has lost its source of income. After this lengthy process, a lump-sum deal becomes difficult to resist, even if it won't cover their future medical costs, which are impossible to anticipate. In the end, some workers with the means (and luck) to have good attorneys might get a decent deal, but the majority of injured workers would get significantly less in a lump sum than they would otherwise receive. That’s why employers want it: to pay less.

 Organized labor and advocates for injured workers support aspects of SB 5566 that have already proven successful in lowering costs by reducing injuries and improving medical treatment. For more information, visit the Washington State Labor Council website at www.wslc.org and read the Legislative Update newsletters.

 In the meantime, please call the Legislative Hotline at 1-800-562-6000 and leave a message for all of your State Legislators AND the Governor that you OPPOSE all benefit cuts in SB 5566. No lump-sum settlements and no cutting off older workers’ benefits!