How Will the New Minimum Wage Impact Workers’ Compensation
Posted by Partners Risk Services on
Many states and cities are enacting new minimum wage laws, and all will feel the impact. Not only will the cost of goods go up, but also every business will see an increase in workers’ compensation costs. Those business with a high minimum wage work force will see an even higher premium increase.
In California for example, the wage increase affects 43% of the state’s workforce and makes California’s minimum wage the highest in the country. Oregon Just passed a statewide minimum wage as well. Alaska, Arkansas, Colorado, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, Rhode Island, South Dakota, and Vermont also increased minimum wages in 2016.
Increased wages will mean increased payroll, and your workers’ compensation premiums are based on your payroll. With increased payroll, come increased benefits, which lead to increased overall claims costs and experience mods.
What is Workers’ Compensation?
Workers’ compensation insurance is insurance that provides lost income, medical benefits, disability benefits, and rehabilitative services for workers injured on the job or while performing work-related duties.
Why Your Business Needs Workers’ Compensation Insurance
When one of your employees gets hurt on the job or has a work-related illness, only workers’ compensation will cover them. Health insurance benefits will not provide coverage for on the job injuries.
We are Independent Agents, free to choose the best carrier for your insurance needs. We do not work for an insurance company; we work for you. We work on your side when you have a loss and follow through to see that you get fair, prompt payment and service. Partners Risk Services represents a carefully selected group of financially strong, reputable insurance companies, therefore, we are able to offer you the best coverage at the most competitive pric