Workers Compensation Rules

Workers Compensation Rules and Laws are different for each state. We've talked about this situation many times in this blog. And when it comes to determining if and when a business may need to carry workers comp insurance it can become confusing.

Here's a couple of questions for business owners;
1. Do you know if you have to provide workers compensation coverage for your employees?
2. As a business owner do you have to be included in the workers comp coverage for your business?
3. How does your state treat sole proprietors, individuals, partners, LLC members and corporate officers in regards workers compensation coverage?
4. Do you have to provide workers compensation coverage for independent subcontractors in your state?
5. Who controls the workers compensation mechanism for the state in which you conduct business and how can you contact them?

If you need help with the answer for any of these questions then you need to visit Workers Compensation Consultants website. They provide a great, free resource for all business owners with questions just like these!

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Nebraska Workers Compensation Benefits - A Fight For Increased Living Costs

Nebraska workers compensation benefits, like most states, provides compensation for off work injured Nebraska workers. In Nebraska the maximum level of compensation is dictated in the Nebraska Workers Compensation Law. For most states, as with Nebraska, the maximum level is a percentage of the states statistical average weekly wage as computed and published each year by the state government. Just so happens that the current maximum payable to a Nebraska injured worker is $671 per week.

Well there is a fight brewing in the Nebraska State Legislature. Just look for Legislative Bill 630. One faction wants to add a cost of living adjustment onto the amount an injured worker would receive. The other group feels this would just increase the cost for workers compensation insurance for private and public enterprise. Seems to me, considering the poor economy we are now in, any increase in cost levied on a business would be difficult.

We'll have to keep our eye on this and see what happens!

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Utah Workers Compensation Benefit Ruling

The Utah workers compensation practice of offsetting workers comp benefits to an injured worker eligible for social security retirement has been struck down by the Utah Supreme Court as unconstitutional. This off-set, as directed under Utah workers compensation law, reduced the amount of compensation an injured worker would receive by 50% after the injured worker had been on workers compensation for six years. This rule had, several years ago, come before the Utah Labor Commission who had refused to consider the constitutionality of the rule.

Now since the Supreme Court ruling, those injured workers may receive their full Utah workers comp benefits along with full social security retirement benefits when they qualify.

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Louisiana Workers Compensation Rates Continue To Fall

In recent Louisiana workers compensation news the Louisiana Commissioner of Insurance has announced the approval of a NCCI recommended reduction of 17.4% reduction in loss cost filings. This news comes on top of a reduction of 8.6% in 2008 and a reduction of 15.8% in 2007. Great news for Louisiana employers!

The Insurance Commissioner attributes these significant reductions in rates to the much improved work safety environment now found in Louisiana. So here's congratulations to Louisiana. Oh yea, that 17.4% reduction was the largest approved by any of 35 states reviewed by NCCI.

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Kentucky Workers Compensation Benefits

A new page put up by Workers Compensation Consultants outlines the Kentucky workers compensation injured worker benefits.

We know how difficult it may be trying to find specific work comp benefit information for employees in Kentucky. You can always go directly to the State for information but we've found so many folks out there would prefer to search the web for this type of information. Workers Compensation Consultants has set up a separate page for each state providing you with the basic information about injured worker benefits. While not all inclusive, it does provide a basic frame work for locating information about Kentucky workers compensation benefits.

So, if you are a injured worker or employer looking for work comp benefit information in the State of Kentucky, check out the link above. If you need benefit information for any other state go to this directory:

Workers Comp Benefits Directory

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California Workers Compensation Fraud - Janitorial Service

Wow! Workers Comp fraud must be the hot thing in the news this week! Check out this page for California Workers Compensation Rules and Laws.

So here's another story about fraud in the workers compensation system. This time it happens to be based in California.

Two executives with a California janitorial service were arrested and charged with fraudulent misrepresentation in reporting the number of employees working in their business. They showed only a husband and wife with no employees. A state investigation found they actually had hundreds of janitors employed. The state indicates this company did not pay $4.4 million in workers compensation premium and another $1.9 million in unemployment and state disability taxes.

So, here's a question....did the owners of this company really think all those performing work for them were independent subcontractors? Is this a mistake they made or was it organized fraud? Well the jury is still out on this one. We'll just have to keep watching and see how this turns out.

A Washington Contractor and Workers Comp Fraud

Who says the State of Washington Workers Compensation Laws don't have teeth? Washington is a monopolistic state and manages a state fund which provides the only workers comp insurance for employers in the state. Click here to find out more about the Washington Monopolistic State Fund.

Recent news coming out of Spokane Washington tells us the story of a local painting contractor who paid his workers in cash, worked his way through work comp claim situations, operated as many as 10 work crews at a time while all along denying he had any employees. It appears this contractor had a track record of thumbing his nose at the Washington Department of Labor and Industry over several years. Well, a few years ago he was charged with 6 felony counts of intentional false reporting and in today's news we find where the judge in this case has accepted a negotiated plea where he would repay $212,000 in back premiums and penalties and be on probation which includes 30 days of electronic home monitoring.

Ever since workers compensation laws were established there has been and will continue to be employers who don't want to step up to the plate and shoulder their responsibility to their workers by providing proper workers compensation insurance coverage all in the guise of saving a buck. Sure, workers comp rules and laws can be complicated and confusing and mistakes are made. There are plenty of professional folks out there who can help an employer do the right thing and if you're an employer and need help with workers compensation, just search the web for "workers compensation consultant" you sure to find a good firm who can help you with your problem. But when that line is crossed and an employer fraudulently places his workers in harm by not providing the coverage dictated by law, at least in most states, the resulting consequences are hard and deserved.

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AIG Workers Compensation Problem

Within the last week I've received requests from two different business owners to review and help correct workers comp problems. But the interesting thing is that AIG is the workers comp insurance company involved with both.

What's up with AIG? Oh yea, they've got a few issues going on right now! So how's their management problem effecting the workers comp insurance side? Read on.

Since we take great measures to protect out clients confidentiality no names will be mentioned here, just some facts.

1. Both clients are insured for workers compensation insurance with AIG;
2. Both clients are having premium problems;
3. Both sums in question are relatively small, a couple thousand of dollars;
4. Both clients did their best in trying to correct the problems AIG created;
3. Now for the best, even though the problems appear to be the mistake of AIG, both clients are being threatened by AIG who is going forward with civil action if they don't pay up.

Considering the size of AIG and the many thousands of policies they have in force, maybe this isn't really the beginning of a trend. Or maybe it is. Think about this.
In the past this type of premium problem from AIG's perspective would have drawn very little attention, you know, not much money involved. Could this be a new practice at AIG? One to aggressively pursue all collection issues, right or wrong? Maybe, but we'll have to wait a while to see about that.

So what can a client do when faced with such aggressive behavior from an insurance company? Simply seek professional workers compensation consulting help at the beginning of a problem. Don't wait til the insurance company is taking you to court. Get a work comp consultant involved as soon as possible. Search the web for "workers comp consultant" and find a firm to work with. The chance of a good outcome for you will be much higher!

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North Carolina Workers Compensation Premium Dispute With AIG

In recent news I've read that a local North Carolina pizza parlor owner was disputing a workers compensation audit and felt they were due a refund from their insurance company, AIG. This article went on to mention that the North Carolina Insurance Commissioner was waiting for the pizza parlor owners to file an official complaint so they could get involved. Evidently the refund amount is $2,261, an amount I'm sure the pizza parlor could use. But is this really an audit dispute?

Could the insurance company be right, what's their reason? Could the pizza parlor owners be right? Who knows! Or is this just something to catch the eye of the news? You know...AIG, workers comp, insurance commissioner...haven't we been here before?

When dealing with money matters and workers compensation insurance there are so many individual issues that could play into the problem. This is where details really do make a difference! Here's a few things to think about:

1. This "refund" could be due to an overpayment and just the normal return premium due after the audit was complete...
2. What if the insured cancelled his policy and just thinks this amount was overpaid...
3. What if the company really does owe the insured this amount back from a audit but is holding it because the insured did not make a final payment, or something like that...

See what I mean. In matters like this you really have to know the details before jumping to conclusions! And if you find you need help with a workers compensation premium problem, always seek help from a professional workers compensation consulting firm!

For North Carolina workers compensation rules and laws go to: North Carolina Workers Compensation

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Ohio Workers Compensation News -

Hot off the press, the much awaited for year long study of the Ohio Workers Compensation System has been completed.

The BWC, Ohio Bureau of Workers Compensation, commissioned this comprehensive study be performed by Deloitte Consulting LLP. Next, look for the analysis phase of the information gathered and an implementation schedule to follow. The Ohio Bureau of Workers Compensation requested this study from top to bottom with emphasis on improving the accountability and operation function of the organization.

What's this mean to the 270,000 businesses insured with the BWC? Well, some recommendations have already been implemented. Those include an adjustment to lower the base rates, the addition of group retrospective rating and the availability of a deductible program, just to mention a few.

The jury's still out, but we hope the recommendations will improve the overall operational strength of the Ohio Bureau of Workers Compensation.

Injured Virginia Worker Unconscious - Claim Denied?

Just hitting the news, a Virginia based employee, while working as a satellite dish installer, fell from the roof of a customers home, suffering severe injuries. It's reported the home owner discovered the injured worker and called 911. The injured employee then spent the next 6 days in the hospital unconscious. Thankfully after awakening he recognized his family and it is now reported he is undergoing recovery therapy. This was all recently reported by Karen McNew, the WSLS 10 Anchor in Roanoke, VA.

You'd think this would be a easy claim for the Virginia workers compensation benefit system, right?

WRONG! Evidently Virginia employs what is know as the "death presumption" concept. Basically unwitnessed work related accidents allow the insurance company to deny workers comp benefits with the exception of death. So, if this injured Virginia worker had died from his injuries, the workers compensation insurance company would have paid off like a slot machine. Unfortunately for this worker, he survived and is now going through rehab for injuries to his brain, shoulder and hip without benefits from the workers comp insurance company. Well, that's what was reported.

You know, it still amazes me that after all these years, after all the corrections state regulators have made, the workers comp system, when needed, can still let us down. Well, it's all in the law! Hopefully after review and armed with all the facts of this accident, the Virginia Workers Compensation Commission will arrive at the right decision for this worker!

How To Get A Workers Compensation Refund

Have you ever received a workers comp refund? You know it's not really a refund. You can never really receive a refund from your workers compensation policy because these policies are set up to be based upon the actual payroll exposure your business incurs over the policy period as adjusted at the end of the policy by the dreaded workers compensation audit!

Here's some tips on what you need to do to make sure you're paying the proper premium for your workers compensation policy:

1. Make sure you understand the premium calculation process. If you don't, then ask someone who does!

2. Be sure to provide your insurance agent with the most accurate projection of payroll you can for your policy period.

3. Make sure you review the issued workers compensation policy you receive from your insurance company for accuracy.

4. Once your workers comp policy has expired the insurance company will conduct an audit. Be sure to check out How to Prepare for a Workers Comp Audit.

5. Have your audit reviewed for accuracy by an independent professional workers compensation consultant. They work for you. Not the insurance company.

Hope these few pointers help you out.

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Colorado Robbing Pinnacol Assurance to Bail Out Budgeting Problems

Well there you have it! Pinnacol Assurance, a successful Colorado workers compensation state fund, is being used to help bail out State of Colorado budgeting problems! Check out Colorado Workers Compensation Rules and Benefits here.

Pinnacol Assurance, a division of the State of Colorado, has achieved a reported reserve of $700 million. According to some, way more than it needs to assure injured Colorado workers get future claims paid. On one hand, good news in that this government established insurer has operated successfully as evidenced by achieving financial security for the State of Colorado employers and employees. On the other hand, bad news in that it's success has put a big bulls eye on its front door for Colorado legislators.

A quick lesson in simple terms; Insurance company reserves or surplus, are comprised of the money left over after premiums are paid by employers, claim and claim expenses are paid and operating expenses are paid. Simply, it's the money held back for the future.

So just who's money is it anyway? According the the State of Colorado, it's theirs, and I'm sure if you look closely you'll find they're right. Well, let's think about that; Who paid the premiums that generated the $700 million excess? Was it the State of Colorado? I bet not. Sure they certainly had a hand in establishing Pinnacol Assurance, but it was established to provide a solution and it did. Let's see, how about those Colorado employers? Yep. Those are the folks who bought the insurance, paid the rates and helped reduce claims leading to the excess.

If Pinnacol Assurance has such an excess surplus, wouldn't it be right to return part of that money to the employers who created it in the first place? So if I was a Colorado employer, I'd be a little upset that the state decided to take part of this reserve and use it to cover it's poor budgeting practices.

What's this mean for the future of other workers comp state funds? Could your state fund do this? More about that in future blogs!

Nevada and Arizona Workers Compensation Benefits - For injured employees

Are you a Nevada or Arizona worker who was injured on the job? Do you have questions about the type of workers comp benefits you should be receiving? If so the visit these pages;

For Nevada workers compensation: Nevada Workers Comp Benefits
For Arizona workers compensation: Arizona Workers Comp Benefits
For All States: Workers Compensation Benefits Directory


The national workers comp consulting firm, Workers Compensation Consultants, has put up a new section on their web site designed just for workers and employees who are injured on the job and seeking information about benefits they may receive. This site provides this information to users free of charge, no kidding! The information has been compiled from the Industrial Commission of Arizona and from the Nevada Department of Business and Industry, the workers compensation governing authorities for each of these states. You'll find the information compiled here is in an easy to read easy to follow format geared in a factual presentation. On each of the state benefit pages you will also find direct links to that individual states web site for those who may need help with more detailed information.

So if you need any information on workers comp benefits for Nevada or Arizona or any other state, visit the pages above. And don't forget to check out the "what's new" section at workcompconsultant.com!

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