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Study: It Pays for Older, Larger Companies to Neglect Safety

Published May 14, 2020 by Matt Fendon Law Group | Workers' Compensation
Study: It Pays for Older, Larger Companies to Neglect Safety

Workers in Arizona should know that their employers are probably faced with a dilemma: either focus on safety at the expense of productivity and profits, or ignore it. Only rarely can a business balance both. An international team of researchers has suggested this after analyzing the survival of more than 100,000 organizations over a 25-year period.

The study found that companies that are older and more established have a greater chance of survival when they neglect worker safety and bear the consequences: namely, fines for safety violations and the costs associated with workers’ compensation claims. Companies that deal with workers’ comp claims survive up to 56% longer than companies that do not.

However, the benefits that come with facing claims only tend to be seen among companies with over 100 employees. Such companies will continue to see these advantages until their quarterly claims reach a little over $9 million, which most never reach anyway. In companies with fewer than 30 employees, researchers saw little to no difference in survival.

The organizations that were studied were all based in Oregon. Researchers limited the focus on disabling claims: that is, claims that led to a permanent disability or a temporary disability that cost victims at least three days off work.

Injured workers who intend to pursue a workers’ compensation case may want legal advice and guidance because the process can be complicated. Though victims do not need to prove anyone’s negligence to be eligible for benefits, the fact is that they may still be denied payment if they contributed to their injuries.

With a lawyer, a worker may find it easier to file their workers’ compensation claim and any appeals. The attorney might also explain how certain workers’ comp cases can be settled in this state. Benefits can include wage replacement and reimbursement for all medical expenses.

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