Caucus Press Release: House Republicans Pass Workers Comp Reform
May 16, 2007
SOUTH CAROLINA HOUSE OF REPRESENTATIVES HOUSE REPUBLICAN CAUCUS / PRESS OFFICE
May 16, 2007
FOR IMMEDIATE RELEASE
For More Information: Chairman Harry Cato (803) 734-3015
House Republicans Reform S.C. Workers' Compensation Laws
COLUMBIA -- The House Republican majority, led by Reps. Harry Cato of Travelers Rest and Michael Thompson of Anderson, approved sweeping changes Wednesday to South Carolina's workers' compensation system.
"Skyrocketing workers' comp premiums are squeezing businesses in South Carolina and are making us less competitive," said Rep. Cato, Chairman of the House Labor, Commerce and Industry Committee. "While there is no guarantee premiums will decrease, this bill will make companies more aggressive in writing new policies, which should lower the cost to businesses."
Key changes approved Wednesday include: * A near-elimination of our worst-in-the-nation "second-injury fund," which has leveled stifling assessments on business for the past several years. The pre-existing conditions covered by this fund are dramatically reduced. * Employees must provide medical evidence that an injury occurred during work. * Stress and mental illness will not be covered unless there is a "preponderance of evidence" that it occurred because of work-related events. * A strict definition of repetitive trauma to ensure an injury is work-related and not age-related. * Appeals from the Workers' Comp Commission will go straight to the state Appeals Court. * A strengthening of penalties for people committing workers' comp fraud.
"This bill takes care of the two biggest concerns we weighed in this debate," Rep. Thompson said. "We had to lower the cost to business while still preserving the right to fair compensation for workers who are injured on the job."
In the span of only a few years, South Carolina has gone from one of the best states for workers' comp rates to middle-of-the pack, Chairman Cato said.
"The economic health of our state is deeply vested in the strength of our business community," said House Speaker Bobby Harrell. "We need to take measures that make it easier to do business in South Carolina while also providing the protection our employees need. This bill is a major step in that direction."
Wednesday's action is another example of conservative legislation approved by House Republicans.
"As a steadfast majority, we have passed an income tax cut, a grocery tax cut, reformed the Department of Transportation and now passed workers' compensation reform," said Majority Leader Jim Merrill. "Today's action is another major achievement for us."
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