Wednesday, May 08, 2013

Court of Appeals NLRB Ruling/ Workers Compensation

I receiver this email from David Burton at the National Small Business Association. Some very good news for millions of small businesses around the country

Federal Appeals Court Invalidates NLRB Poster Regulation

The National Labor Relations Board (NLRB) declared in a rule that employers subject to its jurisdiction (which is most employers) would be guilty of an unfair labor practice if they did not post a “Notification of Employee Rights under the National Labor Relations Act” on their properties and on their websites.

On May 7, the U.S. Court of Appeals for the D.C. Circuit held that the rule was invalid because the NLRB had no statutory authority to issue or enforce the rule.

The NLRB has not indicated whether it will seek a review by the Supreme Court.

To read the opinion, click here.

Yesterday I received a very thoughtful letter from a restaurant owner regarding the cost of his workers compensation. He was seeing his workers compensation cost skyrocketing due to some questionable claims. He voiced his frustration that employers don’t seem to have any rights to question a claim and the system is such that it frequently is cheaper for the insurance company to just settle these claims.

SB 863 will go a long way in cutting cost and already has had an impact on workers compensation increases. Christine Baker our good friend that heads up the Department of Industrial Relations has committed to doing everything she can reduce the cost drivers in the system..

This year SB 626 was introduced to unravel these reforms and Small Business California was at the forefront in opposition to the legislation which is dead this year.

For those of you that have an experience modification I strongly suggest you ask your insurance broker how much your claims are costing you. You will be amazed as in many cases it is three times the cost of the claim. You should also ask what your experience modification would be with no claims. Make sure you ask your insurance broker to provide you with your experience modification worksheet done by the Workers Compensation Insurance Rating Bureau.

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116


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