California: Kiss Your Job Goodbye [Dems want months to fix worker's comp mess created in 48 hours]

California Political Review Online ^ | February 24, 2004 | Ray Haynes

[John Jorsett]

Ask any friend of yours who happens to own his own business, no matter how big or small, what has happened to his workers’ compensation premiums the last three years. Every one I have asked has told me their rates have at least doubled. Most have seen 300 or 400 percent increases. This problem has been around for at least two years, when then- Gov. Gray Davis increased workers’ compensation benefits in March 2002. Soon thereafter, insurance rates began to skyrocket.

For those who do not know, workers’ compensation insurance pays for workers who are injured “on the job.” The problem in California is that we have the highest insurance premiums in the country. You would think these high premiums would lead to lavish benefits for injured workers, but, interestingly enough, California pays out some of the lowest benefits in the country. The reason? People who make money off the system milk it for all it’s worth, and California business owners pay the bill.

Last week, the California Legislature started hearings to reform the system, since business owners have been complaining about it for well over a year. legislative Republicans have been calling for reform since August 2002. Democrats have stalled reform for the same length of time.

This week, new Speaker Fabian Nunez announced that, while “we need reform,” we “need the time to do it right” because we “can’t afford” to screw things up.

I know the new Speaker has been around only a few months, and wasn’t here to see how we got into this mess, so I’ll sketch it out. In March 2002, in 48 hours, the Democrat Legislature and the Democrat governor met with union bosses and trial lawyers (no business owners allowed), cut a deal to increase benefits, and passed the bill. The meetings began Friday night, the deal was cut Sunday, and by Monday at 5:00 p.m., Davis signed the bill. The Democrat Speaker said nothing about any need to go slow “to do it right.” Trial lawyers demanded action and they got it. Business owners were forced to pay the freight.

Last Summer, the workers’ compensation crisis reached critical mass. The Republican caucus introduced a comprehensive package of fixes, most of which were killed outright. In September, Arnold Schwarzenegger made reform a keystone of his campaign. Immediately upon taking office in November, the governor called a special session of the Legislature to deal with this problem, but they left Sacramento for the year without holding a hearing. In his January 5 State of the State address, Gov. Schwarzenegger demanded the Legislature act by March 1. On February 11, Democrats held their first hearing, and said they needed until April 16 to finish their work.

Gee whiz, thanks guys. April 16 is the last day to qualify an initiative to fix the system if we want to get reform in the next two years. If we wait until then, and the Democrats do nothing, jobs will leave the state in droves, because business owners can no longer afford the insurance. Do you think they picked that date on purpose?

When trial lawyers wanted to stick it to the business owners, they asked the Legislature to jump. The Democrat majority asked how high. Now business owners are screaming, but Democrats say we have to study the injury; we must see if it really hurts and whether that big knife in businesses’ back is really real.

Meanwhile, California jobs leave the state. The next job that leaves might be yours. Your boss might take you with him to Arizona ... or he might not. We could fix this tomorrow if the Speaker wanted to — he just doesn’t want to. So if you lose your job because your boss moves to Nevada, now you will know why.

[Carry_Okie]

How do I clone Ray Haynes?

[Starve The Beast]

I have a wonk question: How do trial lawyers figure into the workers compensation mess? I understand that they can sue on behalf of workers who believe they deserve compensation, but there's not much money there, right? How does that work?

[Iron Matron]

My employer hired a man a year ago who worked maybe, two weeks. I wont get into details cause they are boring, but he claimed to have "twisted his ankle" getting out of a company vehicle.

Next thing we all know, he's at the one crack-pot chriopractor (sp?) in town. Next thing hes off on WORKERS COMP for a year PAID!

The workers comp people KNEW it was a flase claim, would not pursue it, because, of some internal quaote for investigations.

So who paid for this lazy, lying, SOB? My employer, who's safety rating was damaged (small, small company) a point or two on osha can be ok for a large cmpany to absorb, but not the small ones.

Workers comp is a FRAUD and should be stopped. NOW!

[Iron Matron]

My employer hired a man a year ago who worked maybe, two weeks. I wont get into details cause they are boring, but he claimed to have "twisted his ankle" getting out of a company vehicle.

Next thing we all know, he's at the one crack-pot chriopractor (sp?) in town. Next thing hes off on WORKERS COMP for a year PAID!

The workers comp people KNEW it was a false claim, would not pursue it, because, of some internal quaote for investigations.

So who paid for this lazy, lying, SOB? My employer, who's safety rating was damaged (small, small company) a point or two on osha can be ok for a large cmpany to absorb, but not the small ones.

Workers comp is a FRAUD and should be stopped. NOW!

[Iron Matron]

My employer hired a man a year ago who worked maybe, two weeks. I wont get into details cause they are boring, but he claimed to have "twisted his ankle" getting out of a company vehicle.

Next thing we all know, he's at the one crack-pot chriopractor (sp?) in town. Next thing hes off on WORKERS COMP for a year PAID!

The workers comp people KNEW it was a false claim, would not pursue it, because, of some internal quota for investigations.

So who paid for this lazy, lying, SOB? My employer, who's safety rating was damaged (small, small company) a point or two on osha can be ok for a large cmpany to absorb, but not the small ones.

Workers comp is a FRAUD and should be stopped. NOW!

[truthkeeper]

ping

[RanchoStash]

The bulk of their money comes from the settlement the employee receives at the end of a long ordeal that insues between Workers' Comp., Doctors, and the employee. Little work, for a nice sum of the partial or full disability settlement. The regulations here in CA require the Workers's Comp. companies to repeatedly send "you have the right to get yourself an attorney" letters to the injured employee. What most people don't know is here in California the State Comp. Ins. Fund (largest carrier for W/C) has the third most employees on Workers' Comp. behind only to other state agencies.

[republicofdavis]

"How do trial lawyers figure into the workers compensation mess?"

I'm surprised he used the term "trial lawyers." It's actually "Applicant's Attorneys." Trial lawyers are commonly understood to be civil attorneys, and they don't handle workers' comp.

[Starve The Beast]

Well, that's what the article called them. That's why I was asking...

[Starve The Beast]

In fact, that might have been what was confusing me, come to think of it.

[republicofdavis]

When I said "he" called them trial lawyers I meant Haynes, not you.

[Starve The Beast]

No, I get it. I worded my reply badly, LOL.

[CyberAnt]

And .. the only reason the dems want to delay fixing the workers comp is so THEY CAN BLAME THE LOSS OF JOBS ON BUSH.

When are people in this state going to wake up and realize the dems do not want to help California .. they only want to harm Bush .. and if we happen to get hurt in the meantime, they don't care.