My family business provides staffing services to local companies, so we’re the first to see when businesses are hiring — and when they’re not. It’s no surprise to anyone there’s not a lot of hiring going on these days.
The economy is a big part of that, but compounding the problem is higher workers’ compensation taxes. When the state increased workers’ comp taxes by more than $100 million this year, we saw job openings dry up.
Now we’re told that huge tax increase wasn’t enough; the state auditor has said taxes need to increase another 33 percent to keep the state-run workers’ comp system solvent. That means taxes are going up again. Another tax increase will make it even harder for businesses to add the jobs we need to get families back to work.
That’s why I’m supporting Initiative 1082.
The state’s own data shows our state-run workers’ comp system is failing. And according to the state auditor, it has a 90 percent chance of becoming insolvent — broke — within five years.
That’s because the state spends about $1.81 for every workers’ comp tax dollar it collects. No private company could do that and stay in business. The state gets away with it because it simply raises our taxes to cover its losses.
Washington is one of only four states where it’s done this way, where government has a monopoly on workers’ comp insurance. That means small businesses, like mine, are held hostage by the state. We can’t shop around for a better deal.
In other states, where competition is allowed, workers’ comp rates are going down. In Oregon, rates haven’t gone up in 20 years. In West Virginia, where they allowed competition just a few years ago, costs are already down 30 percent and small businesses have saved more than $150 million.
That’s money businesses can use to create more jobs. That’s another reason I support I-1082.
I-1082 doesn’t do away with the state-run system. Businesses satisfied with the current system can keep their workers’ comp account there. But those of us tired of paying more and getting less can shop for better prices and better service, for ourselves and our employees.
The unions and trial lawyers who oppose I-1082 make wild accusations that I-1082 was written by insurance companies who exempted themselves from regulation, that injured workers will be unprotected and small businesses will pay more. None of those claims are true.
The truth is, small businesses tired of paying skyrocketing workers’ comp taxes wrote I-1082 — the insurance industry played no role. I-1082 will not exempt anyone from anything. All consumer protection and insurance laws stay on the books, and insurance companies will be regulated by the state.
Injured workers won’t be at the mercy of insurance companies who can deny and delay claims with no accountability. The fact is no benefits for injured workers are changed in I-1082 — workers will be protected by the same regulations and entitled to the same benefits as they are today. They will have the same rights, protections and administrative and judicial processes for resolving claims.
As for their claim I-1082 will increase costs for small businesses — I’m glad unions and trial lawyers are suddenly concerned about my bottom line! So let’s talk about those added costs.
Washington is the only state that allows employers to charge employees a share of workers’ comp taxes. I-1082 eliminates the employee paid portion. But a lot of businesses pay the full tab already, so they won’t see any increase in cost. Businesses where workers share the cost will see a slight increase at first — and their workers will have more money in their paychecks.
As a small business owner, I’m willing to pay a little bit more now because I know competition will lower my costs in the long run, and that will allow me to create jobs. That’s why almost every business organization in the state, along with hundreds of small business owners like me, supports I-1082.
Small business and workers deserve better than what they’re getting from the state. Please help us end our state’s failing workers’ compensation monopoly and give employers a choice.
Vote Yes on 1082 and help save our jobs.
Betty Neighbors is president of TERRA Staffing Group in Everett. Learn more about I-1082 at www.SaveOurJobsWA.com.
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