Workers' Compensation Committee Update
Staff contact: Lev Ginsburg
January 10, 2013
State of the State
The Governor in his State of the State Address, available here, announced that he will introduce legislation to reduce the cost and improve the administration of the workers' compensation system. The Governor broadly proposes:
- Eliminating unnecessary friction in the system.
- Resolving insolvent Group Self-Insurance Trust (“GSIT”) issues through a bonding program to help defaulted and inactive trusts purchase assumption of liability policies and settle employer liability.
- Combining current five WCB assessments into a single assessment.
- Promoting system-wide transparency, efficiency, equity, and consistency.
The Governor projects that these proposals and those proposed to reform Unemployment Insurance programs will result in $1.3 billion in savings to businesses.