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Workers Compensation: I-1082 Heats Up; Republican Party Endorses BIAW
There is a ballot initiative being presented by the large industries of Washington State in the next election cycle that could divide a worker’s overall notion of how they feel politically and what is in their own personal best interest. It is in regards to workers compensation and the fate of the Washington State Department of Labor and Industries (L&I).
The Building Industry Association of Washington (BIAW) introduced Initiative 1082. The BIAW is a conservative organization who “fight against” government on behalf of private industry. They are specifically geared to improving the profit of the building industry through deregulation, much like what happened with the banking industry in the early 2000’s, which resulted in a global economic collapse.
Their intent with I-1082 is to privatize workers compensation insurance in Washington state. In theory this would bring down premiums due to competition, or that’s what many who promote privatization contend. Others who back this initiative say that this would allow employers more choice on their workers compensation plans and thus be able to better protect their workers.
With help of private donation from Washington businesses large and small, the BIAW spent about $500,000 to put the I-1082 on the ballot. This initiative was also largely backed by those who would reap the profits from it, the insurance companies. Liberty Mutual, the new corporate parent of Safeco, has given $300,000 to the campaign, a mere drop in the bucket compared to the expected profit to be had if the initiative passes.
Workers Compensation in Washington State
Workers compensation in Washington State was intended to protect both workers and employers. It is an agreement between workers and employers that the worker will waive their right to sue if the employer agrees to provide adequate compensation while the worker heals so that the worker’s family doesn’t starve and the worker can return to work as quickly as possible.
This is one of only four state run workers compensation insurance programs in the country. That may be what the BIAW means on their website as “regulation.” You see, what the BIAW and I-1082 neglects to point out is that L&I doesn’t stop employers from getting private insurance.
That right, industries are able to self-insure under supervision by L&I. The supervision is there because one of the biggest problems in the state that ends up costing tax payers millions of dollars is employers lagging on their insurance premium payments, in turn adversely affecting the worker. L&I usually reserves self insurance for large companies because it is easier to regulate and they are usually the only ones that benefit private insurance because they have a large enough account. Smaller employers would see little to no benefit from private insurance.
Labor officials argue that Washington’s system protects workers better than a private one by forsaking profits. Defenders also say the state has relatively moderate costs, ranking about midway nationally in one study when including “pension” costs for the permanently disabled.
“This system has its faults, but it works pretty well as a public system,” said Alex Fryer, spokesman for the No on 1082 campaign. “When you introduce the profit motive into a system like this, what we’ve seen in other states is that claims get denied and delayed for a long time.”
By privatizing workers compensation insurance it would shrink the government run insurance system, give them less funding to regulate employers, and eventually hamstring regulation all together. Once L&I goes away, then premiums rise to compensate for the demands of insurance company shareholders. It has happened time and time again with few to no exceptions.
How does this benefit employers? Over the long run, it doesn’t, but those lacking fiscal foresight or the desire to study historical economic trends seem to prefer ideology over sound economic choices. In short, the supporters of I-1082 prefer politics over math.
If you doubt the intent of the BIAW in destroying the Washington state L&I program then allow BIAW to speak for themselves when Tom McCabe wrote in a recent BIAW newsletter:
“I personally yearn for the day when the mammoth state Department of Labor and Industries is closed down, windows shuttered, with weeds growing all over its sprawling campus.”
Workers Compensation Lawyers
There is not doubt that employers need regulation in regards to workers compensation insurance. The instances of employer fraud outweigh employee fraud by millions of dollars annually. Some employers don’t seem to understand that workers compensation insurance may cut into their profit margins, but a personal injury lawsuit or a wrongful death lawsuit could cost them their business.
The vast majority of employee claims are legitimate claims from being injured on the job. They help Washington employees recover by providing them up to 2/3 of their income. Working in tandem with health insurance providers, workers compensation is generally enough to help the worker get the care that they need and provide an environment where they can rest and heal in order to return to work as quickly as possible.
Workers compensation can be a complicated process for both the employee and their family. The process is almost always during a stressful time right after the worker has been injured or killed. Many families have found that it is easier to seek help during this period in order to be able to focus on their loved ones and still get the compensation they deserve.
The law firm of Phillips Webster has a team of legal professionals dedicated to seeking just compensation for workers injured on the job. Our workers compensation attorneys will look at your case for free and give you options on what you need to do to move forward. Call Phillips Webster now for a free consultation.
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