Florida’s 59 consecutive months of private sector job growth may soon be in jeopardy as job creators prepare for a proposed 19.6 percent workers compensation rate increase, according to the Florida Chamber of Commerce.
The National Council on Compensation Insurance (NCCI), has recommended a 19.6 percent workers compensation rate increase, proposed effective beginning October 1. NCCI is the insurance industry’s provider of workers compensation analysis and rates. The increase results from two recent Florida Supreme Court rulings that deemed Florida’s attorney fee provision unconstitutional (Castellanos v. Next Door Company), and declared the current cap for temporary total disability (104 weeks) unconstitutional (Westphal v. City of St. Petersburg).
If the rate filing is approved, Florida will have the highest premiums in the Southeast, according to the Chamber's news release.
“Small businesses create two of every three jobs in Florida, and a workers compensation rate increase as significant as this could force these businesses to choose between paying higher workers compensation rates and hiring new employees,” said Mark Wilson, President and CEO of the Florida Chamber of Commerce. “A 19.6 percent rate increase will cause uncertainty among job creators and may even force a decline in Florida’s job growth.”
“It’s clear that Florida’s workers comp system is under attack,” Wilson added. “A legislative solution will help bring certainty back to Florida’s job creators."
