NCCI: Probability of a recession has diminished
- The labor market has continued to evolve in a positive direction for the workers’ compensation system relative to the tight post-COVID market of a few years ago, according to the NCCI’s Quarterly Economics Briefing for the third quarter of 2023.
- The labor market remains robust, characterized by an average of 266,000 net new jobs added over the past three months and strong annual wage growth of 4.2%, supporting premium growth in workers’ compensation.
- Labor market statistics continue to improve with rising participation and more normalized turnover, taking some pressure off the economic drivers of workers’ compensation frequency.
- The probability of a recession has diminished over the past quarter as consumer spending remains supported by strong employment levels, real income growth, further capacity for debt, and still-elevated excess savings.
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Lawyers argue over workers’ comp for teacher who was shot
Lawyers argued in a Virginia courtroom over whether a teacher who was shot by her 6-year-old student should get only workers’ compensation for her serious injuries.
Abby Zwerner is suing Newport News Public Schools for $40 million, alleging gross negligence against school administrators.
The school board is trying to block the lawsuit, arguing that Zwerner’s injuries fall under workers’ compensation.
The former first-grade teacher was hospitalized for nearly two weeks and endured multiple surgeries after a bullet struck her hand and chest. Workers’ compensation would provide up to nearly 10 years’ pay and lifetime medical benefits for physical and psychological injuries.
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Wyoming lauds workers’ comp program
- Wyoming Gov. Gordon lauded the efforts of the state’s Department of Workforce Services (DWS) to help citizens get jobs in their communities and get insurance (UI) benefits.
- DWS has worked with the Joint Appropriations Committee to propose changes that could reduce Workers’ Compensation premiums paid by employers.
- The result of this work is a legislative bill draft that would allow a portion of the investment income to be considered during the employer rate-making process.
- Currently, the Workers’ Compensation Division has an actuary who completes an annual Economic Capital Model review to project the future distribution of assets, liabilities, pricing, and catastrophic risks.
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Workers’ comp plays role in strikes
- CEOs’ to workers’ compensation ratios have skyrocketed by 1,322% since 1978 in the United States.
- GM CEO Mary Barra makes $29 million annually, something that the UAW is focusing on as its members strike against American auto manufacturers.
- In a span of 12 months, Kaiser Permanente workers walked out of their workstations twice.
- Companies, such as Kaiser Permanente, should not wait until employees threaten to strike before they consider what conditions of employment need improvement, says Pius Kamau, president of the Aurora-based Africa America Higher Education Partnerships.
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