Workers’ Compensation Policy Review

Summary of the Contents – March/April 2007

             Workers’ compensation costs vary among employers due to factors such as a firm’s geographical location, industry, and union status.  In the lead article, “Workers’ Compensation Costs in 2006: Regional, Industrial, and Other Variations,” Florence Blum and John Burton analyze the Bureau of Labor Statistics data on employers’ costs in 2006.  The workers’ compensation costs for all employers in the private sector averaged 2.36 percent of payroll.  In service-providing industries, costs averaged 1.93 percent of payroll, but the range among specific service industries was substantial, varying from 3.0 percent of payroll in trade, transportation, and utilities and 3.0 percent in leisure and hospitality to 0.76 percent of payroll in financial industries.  Workers’ compensation costs also varied among regions, with the range from 3.09 percent of payroll in the West to 2.00 percent of payroll in the South.

            The treatment of wounded veterans has received considerable attention in recent months, in part because of the deficiencies in providing rehabilitation services at the Walter Reed hospital.  The Veterans’ Disability Compensation Program has also been criticized.  A revised version of John Burton’s testimony in April 2007 to The President’s Commission on Care for America ’s Returning Wounded Warriors is included in this issue.  In response to the Commission’s request, Burton provided “Lessons from Civilian Disability Systems for the Veterans’ Disability Compensation Program.”   Burton drew on the experience of workers’ compensation programs to provide seven principles for the cash benefits in a model disability compensation system.

 Information on the Workers’ Compensation Policy Review

             The Workers’ Compensation Policy Review is published six times a year.  Requests for a sample copy or for subscription information can be sent to WCPR, 56 Primrose Circle , Princeton , NJ 08540 -9416; by FAX to 732-274-0678; by e-mail to JBWCR@aol.com; or electronically by visiting the website: www.workerscompesources.com.