Business owners know the value of workers' compensation in worker injury cases. This form of coverage provides workers with much-needed medical care and financial remuneration while helping employers avoid messy, protracted civil suits.
But according to an August 15, 2014 article in Business Insurance, businesses throughout Florida may soon find themselves providing more benefits for their workers -- and presumably paying more as well. Judge Jorge E. Cuerto of Miami-Dade County's 11th Circuit Court has ruled the Florida Workers' Compensation Act unconstitutional in its current form and range of benefits.
The central issue in this case hinges on the law's provision that employees accept workers compensation as their "exclusive remedy" for recouping wages lost to a work-related injury. Padgett has contended that once she had run through all her workers' compensation benefits, she was denied any means of pursuing further compensation through the courts.
This protection from tort action is a central aspect of the Florida law as a means of trading quick, simple compensation for lengthy, expensive courtroom battles. Cuerto contends that this very exclusivity ties employees to inadequate benefits, violating their Constitutional rights in the process.
How did this sudden, dramatic pronouncement come about? The workers' compensation law currently on the books is nearly 80 years old. During its first several decades, it required business to pay all injured employees' medical bills alongside other generous benefits.
Unfortunately, it also required those businesses to pay some of the highest premiums in the nation, making it more difficult for Florida companies to thrive. According to an August 13, 2014 article in the Miami Herald, the "exclusive remedy" provision entered the law in 1968, while additional changes in the years to come reduced the extent to employee benefits. Since the last major amendment to the law in 2003, premium rates have dropped by a remarkable 56 percent. Meanwhile, workers have felt increasingly under-served by the reduced range of benefits provided. This most recent ruling, which shocked even those who agree with it, represents a long-simmering issue finally coming to a boil.
But according to an August 15, 2014 article in Business Insurance, businesses throughout Florida may soon find themselves providing more benefits for their workers -- and presumably paying more as well. Judge Jorge E. Cuerto of Miami-Dade County's 11th Circuit Court has ruled the Florida Workers' Compensation Act unconstitutional in its current form and range of benefits.
The central issue in this case hinges on the law's provision that employees accept workers compensation as their "exclusive remedy" for recouping wages lost to a work-related injury. Padgett has contended that once she had run through all her workers' compensation benefits, she was denied any means of pursuing further compensation through the courts.
This protection from tort action is a central aspect of the Florida law as a means of trading quick, simple compensation for lengthy, expensive courtroom battles. Cuerto contends that this very exclusivity ties employees to inadequate benefits, violating their Constitutional rights in the process.
How did this sudden, dramatic pronouncement come about? The workers' compensation law currently on the books is nearly 80 years old. During its first several decades, it required business to pay all injured employees' medical bills alongside other generous benefits.
Unfortunately, it also required those businesses to pay some of the highest premiums in the nation, making it more difficult for Florida companies to thrive. According to an August 13, 2014 article in the Miami Herald, the "exclusive remedy" provision entered the law in 1968, while additional changes in the years to come reduced the extent to employee benefits. Since the last major amendment to the law in 2003, premium rates have dropped by a remarkable 56 percent. Meanwhile, workers have felt increasingly under-served by the reduced range of benefits provided. This most recent ruling, which shocked even those who agree with it, represents a long-simmering issue finally coming to a boil.
Premium rates have dropped dramatically between 2003 and 2014.
What does this ruling mean for Florida businesses going forward? That depends in part on whether it actually stands. In an August 19th, 2014 article for Insurance Journal, Michael Adams reports that area attorneys expect to see the ruling appealed to the Florida Supreme Court. But a reversal of the ruling does not necessarily guarantee a return to business as usual. The Supreme Court would hear this case hot on the heels of several other such cases.
One notable example concerns the 2009 case of a firefighter who found himself unable to seek financial redress after his 104 days of temporary disability benefits under workers compensation came to an end. The more frequently these issues find their way to the Supreme Court, the more receptive the Court might become to workers' compensation reform. If that happens, premiums will be on the rise once again.
One notable example concerns the 2009 case of a firefighter who found himself unable to seek financial redress after his 104 days of temporary disability benefits under workers compensation came to an end. The more frequently these issues find their way to the Supreme Court, the more receptive the Court might become to workers' compensation reform. If that happens, premiums will be on the rise once again.
You can expect to see this latest ruling appealed.
The smartest move for business owners is to make absolutely sure they're getting the best discounts and lowest premium rates possible under any permutation of workers' compensation law. A&A Underwriters can evaluate your current coverage to see whether your current underwriting makes sense for your particular needs. Now more than ever, it pays to have a business insurance expert on your side!
William Reynolds has worked as a freelance copywriter since 1997. William has written on a wide range of subjects, including commercial and personal insurance.
(Images courtesy of imagerymajestic and suphakit73 /FreeDigitalPhotos.net)
http://www.businessinsurance.com/article/20140815/NEWS08/140819897?tags=|59|338|329|75|84|304|92#
http://www.miamiherald.com/2014/08/13/4288124/injured-employees-cheated-by.html
http://www.insurancejournal.com/news/southeast/2014/08/19/338088.htm
William Reynolds has worked as a freelance copywriter since 1997. William has written on a wide range of subjects, including commercial and personal insurance.
(Images courtesy of imagerymajestic and suphakit73 /FreeDigitalPhotos.net)
http://www.businessinsurance.com/article/20140815/NEWS08/140819897?tags=|59|338|329|75|84|304|92#
http://www.miamiherald.com/2014/08/13/4288124/injured-employees-cheated-by.html
http://www.insurancejournal.com/news/southeast/2014/08/19/338088.htm
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