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Study: Workers’ comp claims benefit older, larger companies

| Jun 2, 2020 | workers' compensation

Arizona workers should know that they may be more or less at risk for an on-the-job injury depending on the size of the company they work for. An international study found that older, better-established companies can actually boost their profits and increase their chances of survival by ignoring certain worker safety requirements.

The study involved more than 100,000 organizations in Oregon. Researchers, measuring the survival rate of these organizations during a 25-year period, found that companies that face workers’ compensation claims are 56% more likely to survive than companies that do not. While the benefits of ignoring safety for the sake of profit are few or non-existent for companies with under 30 employees, they became clear in the case of companies with more than 100 employees.

Though researchers were not able to explain it, facing workers’ comp claims and being penalized for safety violations appears to be less of a financial burden on larger companies than maintaining a safe workplace. The high claims costs do not affect these companies. This means that smaller companies have a greater incentive to boost safety, yet these tend not to have the resources to do so.

This is the dilemma that most business owners face. Only in rare cases can businesses balance both safety and productivity.

Someone who has been injured on the job may pursue a workers’ compensation case. Unlike with a personal injury claim, they do not need to prove anyone’s negligence. However, some workers may have payment denied to them, so it’s normally advisable to hire a lawyer for the filing process. The attorney could prepare an appeal if necessary. A legal professional may also explain how certain claims can be settled.

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