labor and employment relations association annual meeting st. louis, missouri june 7, 2013
TRANSCRIPT
Workers' Compensation: Recent Development
by John F. Burton, Jr.
Labor and Employment Relations Association Annual Meeting
St. Louis, Missouri
June 7, 2013
John F. Burton, Jr.
Professor Emeritus
Rutgers University and Cornell University
A Definitive Introduction to Workers’ Compensation in 900 Seconds
Workers and Employers Generally Dissatisfied with Tort Suits
Workers Had to Bring Tort Suits against Employers for Work Injuries Prior to Workers’ Compensation
New Jersey and Wisconsin were the initial states to enact workers’ compensation statutes in 1911
U.S. Supreme Court interpretation of Commerce Clause precluded a federal law covering private sector and state and local government workers as of 1911
Although the constitutional limits on a federal program for private sector workers changed in the 1930, almost all private sector workers currently are covered by state workers’ compensation programs and there are no federal standards for these state programs
Workmen’s Compensation Statutes Were Enacted by States
Workers injured on the job do not need to prove that employer is negligent
Workers’ compensation is exclusive remedy for workers for work-related injuries and diseases
◦ Workers can only receive benefits prescribed by workers’ compensation statute
◦ Workers cannot bring tort suits against employers (with very limited exceptions)
Workers’ Compensation Principle
Figure AWorkers’ Compensation Benefits Paid by Type of Insurer,
in 2010
Source: NASI (2012: Table 4) .
Figure B Workers' Compensation Benefits and Costs per $100 of Covered Wages,
1980–20101
98
0
19
81
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82
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83
19
84
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85
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86
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
0.96 0.971.04 1.05
1.091.17
1.231.29
1.34
1.46
1.571.65 1.65
1.531.47
1.351.26
1.17 1.13 1.121.06
1.10 1.13 1.16 1.131.09
0.990.95 0.97
1.02 0.99
1.76
1.671.58
1.50 1.49
1.64
1.791.86
1.94
2.04
2.18 2.16 2.132.17
2.05
1.83
1.66
1.49
1.38 1.35 1.341.43
1.57
1.71 1.70 1.71
1.56
1.45
1.331.29
1.23
Benefits
Employer Costs
Source: National Academy of Social Insurance estimates.Benefits are payments in the calendar year to injured workers or to providers of their medical care.Costs are employer expenditures in the calendar year for workers' compensation benefits, administrative costs, or insurance premiums. Costs for self-insuring employers are benefits paid in the calendar year plus the administrative costs associated with providing those benefits. Costs for employers who purchase insurance include the insurance premiums paid during the calendar year plus the payments of benefits under large deductible plans during the year. The insurance premiums must pay for all of the compensable consequences of the injuries that occur during the year, including the benefits paid in the current as well as future years.
Figure C Share of Medical and Cash Benefits, 1960-2010
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64
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66
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0
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Medical Benefits
Cash Wage Replacement
Perc
enta
ge s
hare
Source: National Academy of Social Insurance
10.7
17.7
32.1
18.2 17.9
5.3
-3.1
1.8
-7.6
1.90.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1959-1965 1965-1970 1970-1975 1975-1980 1980-1985 1985-1990 1990-1995 1995-2000 2000-2005 2005-2010 2011
Figure DWorkers’ Compensation Statutory Benefits Changes,
1959-2011
Source: Burton and NCCI 2012.
Sources of Data:
www.workerscompresources.com