Caucus Press Release: Republicans Reform Workers' Comp for S.C. Small Businesses
Jun 20, 2007
FOR IMMEDIATE RELEASE
Republicans Reform Workers' Comp
for S.C.âs Small Businesses
COLUMBIA -- The House of Representatives took a major step toward relieving the overwhelming burden an inefficient workers' compensation system was placing on our state's small businesses.
"I'm proud of the House for taking action to support our state's small businesses," said Rep. Harry Cato, chairman of the Labor, Commerce and Industry Committee. "There is no guarantee these reforms will reduce insurance premiums, but I believe it will bring more competition in writing new policies, which should lower the cost to businesses."
Key changes approved Wednesday include:
* An elimination of our worst-in-the-nation "second-injury fund," which has leveled stifling assessments on business for the past several years.
* 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.
* A strengthening of penalties for people committing workers' comp fraud.
"Passage of this bill was a long time in coming," said Rep. Michael Thompson of Anderson, who authored the bill. "Small businesses are the engine of our state's economy. Anything we can do to help them will create jobs and make our state stronger."
Seven years ago, South Carolina was one of the best states for workers' compensation rates. Since that time, we have fallen to the middle of the pack and, until Wednesday, we were still falling.
"This spike in insurance premiums hit small business owners and their employees especially hard," said Rep. Nikki Haley of Lexington. "These reforms -- along with the tax cuts we are still debating -- are critical for improving the economic well-being of our state."
House Speaker Bobby Harrell said: "This is the third year in a row the House has focused on a Workers' Comp bill, I am pleased to see this bill finally adopted. Driven by consecutive double-digit rate increases and a cry from our business community, this reform will make it easier for businesses to grow while also providing the protection employees need."
For More Information:
Chairman Harry Cato
(803) 734-3015
Rep. Michael Thompson
(803) 734-3014
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Click for a PDF copy of this press release.
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