Challenges in workers’ comp industry

• The NCCI held its Annual Insights Symposium 2023 in Orlando, Florida, and released its key findings from the event.
• Workers’ comp premiums increased 11% in 2022, returning to the near pre-pandemic levels of 2019.
• The calendar year combined ratio for workers’ comp is 84%, a sign of underwriting profitability for the system.
• Workers compensation’s accident year combined ratio is 97% with prior years continuing to experience downward reserve development.
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New York woman sentenced for workers’ comp fraud

• Joanne Florek, of Albion, New York, pleaded guilty to charges that she defrauded the workers’ compensation system of more than $80,000 in benefits.
• Florek began receiving workers’ comp benefits after claiming that she was injured while on duty at Orchard Manor Rehabilitation and Nursing Center in Medina, NY, where she worked as a nurse.
• Florek made multiple representations to her insurance carrier, PMA Companies through statements to physicians and the completion of various questionnaires, that she had not returned to work in any capacity, nor had she collected earnings since her injury.
• Under state law, injured employees are expected to provide truthful information regarding their work activity to insurance carriers and the Workers’ Compensation Board during the time they are receiving benefits.
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New cancer registry for firefighters

• The Centers for Disease Control and Prevention, through NIOSH, launched the National Firefighter Registry for Cancer online enrollment system for firefighters across the U.S.
• The NFR for cancer is the largest effort undertaken by the nation to support and advance the understanding of cancer in the fire service.
• President Biden has shown strong and enduring support for firefighters for decades and this step will help deliver on his commitment to end cancer as we know it as part of the Cancer Moonshot.
• While participation is voluntary, all U.S. firefighters, with or without cancer, are encouraged to join the NFR for Cancer.
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Consequences for misclassifying contract workers

• The classification of 1099 contractors and W-2 employees is important for businesses expanding their use of independent contractors and with good reason.
• However, fines levied by the US Department of Labor, IRS, and state agencies for worker misclassification can exceed millions depending on the severity of the infractions.
• The threat of class action lawsuits should also serve as a further deterrent for companies straddling the boundaries of improper classification.
• As more and more companies begin leveraging independent contractors, it’s paramount that HR executives and CHROs are armed with all the information they need to mitigate compliance risk and properly classify their workers.
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