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Orcutt testifies against
proposed L&I rate increase on employers
'Whether it comes out of
employee or employer pockets, the fact is, it's money out of the economy
which is something we can ill afford,' says Orcutt
Rep. Ed Orcutt, R-Kalama, testified at a public hearing in
Vancouver today against the Washington State Department of Labor and
Industries' (L&I) proposed 7.6 percent increase in employer worker
compensation rates.
Orcutt, the ranking Republican on the House Finance
Committee, said now is not the time to be levying what amounts to an
employer tax on businesses that provide jobs for workers in this state.
"The department has indicated their proposed increase in workers'
compensation rates will bring in about $120 million," Orcutt
said. "But we have to remember where this money comes from -- the
economy. Whether it comes out of employee or employer pockets, the
fact is, it's money out of the economy which is something we can ill
afford.
"The department also says they need the rate increase because there are
fewer premiums being paid because there are fewer hours being worked,"
Orcutt continued. "But if there are fewer hours
being worked, isn't there less risk of people being injured on the job?
If less hours being worked is a problem, won't we be making the problem
worse by increasing rates which will lead to more layoffs? And,
won't the increase in workers' compensation rates also delay employers'
ability to bring back displaced workers?"
During his testimony, Orcutt also questioned the status
of the L&I reserve account, specifically wanting to know how the
approval or rejection of the rate increase would affect the reserve
account.
"When L&I officials couldn't answer that question, I was shocked,"
Orcutt said. "How can we be asking for more money
from employers without knowing the dynamics of the reserve account?
It makes me, and the many employers in our state, wonder if L&I is being
truthful and upfront in making their case for the rate increase."
Orcutt said he would like to see reforms in the system
with more accountability and more fraud protections before the
department asks employers for more money.
"Judging from the testimony we heard today, it's obvious that there is
too much fraud and mismanagement going on within the system,"
Orcutt said. "We need to fix the problems and hold the
agency accountable before asking for more money from employers who are
struggling to keep the employees they have.
"It's pretty clear that today's announcement from Boeing is due in part
to problems in the L&I workers compensation program," Orcutt
concluded. "Employers have been telling officials for years that
there are problems that need to be addressed. And now, with one of
the state's largest employers moving part of their operation to South
Carolina, one wonders if this isn't the floodgates opening to see more
precious jobs move to more job-friendly states."
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For more information, contact:
Brendon Wold, Senior
Information Officer:
(509) 921-2356
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