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Business Community Blocks Bill to Increase Workers’ Comp Costs

| Labor & Workplace
This week, the broad-based business community took a stand against legislation that would have costly implications for North Carolina employers by raising workers’ compensation premiums for all employers whether or not they have claims. Senate Bill 101 was up for debate in the N.C. House Judiciary B Committee Monday, where I joined other business community representatives in testifying against the harmful, unbalanced legislation. The committee did not take a vote on the legislation, which was dropped after the committee debate. Thank you to those who took action in contacting the committee and your representative – your voice was heard. We will keep you updated if a vote for this bill is rescheduled.Anti-Jobs Measures in Senate Bill 101:

  • SB101 proposed to more than double the award (from $20,000 to up to $41,600) for the loss of, or permanent injury to, an organ and would provide for an annual adjustment upward based on the Consumer Price Index.
  • SB 101 would raise workers’ compensation premiums for all employers whether or not they have claims and would significantly impact awards in claims where organ injury is an issue.
  • SB 101 does not contain a definition of “organ” nor any differentiation as to the degree of loss of function of the organ to determine the amount of the award. Without these limitations, awards for loss of, or injury to, an organ will dramatically increase. To illustrate, a recent case in which the employee received an award of $127,000 by the deputy commissioner could rise to $288,400 under the provisions of SB 101.

Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber