Workers’ Comp Impacting Optimism for Small Businesses

December 21, 2023

Rates in workers’ comp expected to rise seasonally

  • The National Federation of Independent Business Small Business Optimism Index decreased 0.1 point in November to 90.6 partly due to workers’ comp challenges, which marks the 23rd consecutive month below the 50-year average of 98 in New Jersey.
  • Recent proposals in Trenton to expand the state’s paid leave mandate and raise attorney’s fees in workers’ compensation cases are an example of the regulatory jeopardy that job creators across the state are facing.
  • Seasonally adjusted, a net 30% of owners plan to raise compensation in the next three months, up six points from October and the highest since December 2021.
  • A net 30% (seasonally adjusted) plan to raise compensation in the next three months, up six points from October and the highest reading since December 2021.
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Business owner sentenced for $18M fraud in New York

  • Manhattan District Attorney Alvin Bragg, J announced the final sentencing in their prosecution of an $18 million workers’ compensation fraud case and the return of $7.75 million to the New York State Insurance Fund (NYSIF).
  • Sadaf Bhatti was sentenced to 1-to-3 years in state and his company, Anaar Construction & Contracting Corp., was sentenced to a three-year conditional discharge for participating in a scheme with certified public accountant Steven Lyon to defraud the New York State Insurance Fund of more than $18 million.
  • NYSIF relied on these false documents to calculate workers’ compensation insurance premiums, grossly under-charging the employers as a result.
  • On October 19, 2023, Lyon was sentenced to up to seven years in state prison after pleading guilty to insurance fraud. Lyon acted as the company’s representative during NYSIF’s mandatory annual audits.
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Ohio Bureau of Workers’ Compensation has safety grants available

  • The Ohio Bureau of Workers’ Compensation (BWC) recently announced $15 million in available grant funds through the Workforce Safety Innovation Center.
  • This funding opportunity is being offered for the research and development of cutting-edge personal protective equipment and personal protective technology to enhance workplace safety.
  • Data collected from BWC claims determines priority areas of focus for the research and evaluation of new technologies and products that will be developed through the Workforce Safety Innovation Grant to reduce the frequency and severity of on-the-job injuries.
  • The grant is administered to accelerate the process for innovations from proof-of-concept to the marketplace.
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Firefighters injured in Massachusetts

  • Three firefighters were injured, including one who had to be flown to a Boston hospital, while fighting a multi-alarm house fire in Falmouth, Massachusetts.
  • Fire officials say they received two 911 calls reporting heavy smoke from the back of the Cape-style home on River’s Edge Road.
  • Crews entered through the front door of the home, as one firefighter fell through the floor into the basement.
  • He was carried out from the building and taken by ambulance to a nearby field where Boston MedFlight was waiting to fly him to Massachusetts General Hospital.
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