Workers’ Compensation Policy Review

 Summary of the Contents – November/December 2006

             The National Academy of Social Insurance (NASI) provides the most comprehensive data on the U.S. workers’ compensation program, since the information includes all states as well as all types of insurance arrangements, including private carriers, state and federal funds, and self-insurance.  John Burton analyzes some of the NASI’s latest data in “Workers’ Compensation Benefits and Costs in 2004.” Benefits paid to workers as a percent of payroll declined from 1.16 percent of payroll to 1.13 percent of payroll in 2004.  Costs to employers for the program increased to 1.76 percent of payroll in 2004, continuing a climb that began in 2001.  Both benefits and costs measured as a percent of payroll remain well below their levels from the mid-1980s to the mid-1990s.  Will costs and benefits increase after 2004?  Burton provides a catalogue of conflicting developments that make predictions of subsequent changes particularly challenging.

            Workers’ compensation is normally the exclusive remedy for a disabled employee against his employer for a workplace injury or diseases.  The exclusive remedy doctrine is part of the “bargain” that allows workers to obtain workers’ compensation benefits without having to demonstrate that the employer is negligent.  Most states, however, allow the employee to bring a tort action against the employer when the injury is a result of an intentional act of the employer.  In “The Exclusive Remedy Doctrine and the Intentional Injury Exception,” John Burton examines five possible approaches by states to the possibility of a tort suit when the employer engages in activity that at least arguably represents an intentional injury to the employee.  The range of possible approaches varies from a few states in which there is no intentional injury exception to states in which a tort suit may result from negligent, wanton, reckless, or grossly negligent employer conduct.   Burton asserts there are no states that use the latter legal standard.

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.