Workers’ Comp (CONT’D FROM PAGE 24)
Board Converting NEWS INTERNET DIRECTORY
These upward payroll pressures are coming at a time when the federal government is deregulating workplace safety standards and reducing the number of workplace inspectors, noted Shaw. “Some companies love the idea of deregulation because it can reduce immediate costs,” said Shaw. “But an increase in injuries might well raise costs over the longer term.” The difficulty younger workers face in obtaining afford- able health care may add fuel to the fire. “We may see an increase in claims as people struggle with obtaining and maintaining medical care,” said Shaw. “We have in the past seen people use the workers’ comp system for either per- sonal medical needs or as wage extension.” More Mental Stress The influx of younger workers can increase costs for two other reasons. First, younger workers have a more liberal attitude toward the use of recreational marijuana. “The younger generations see marijuana as more like beer or alcohol,” said Shaw. “We anticipate that as more states legalize recreational marijuana we're going to continue to see some impact, especially in industries that require workers have balance and focus to do their job well and to be safe and not have catastrophic injuries.” The National Institute on Drug Abuse (NIDA) found that workers testing positive for marijuana were involved in 55 percent more industrial accidents, 85 percent more injuries, and experi- enced 75 percent more absenteeism. Additionally, mental health issues have much less stig- ma among members of the younger generations, who are more comfortable than Boomers discussing and claiming work-related stress. They also expect mental health sup- port from their employers. “Mental health claims seem to be the fastest growing segment of the workers’ compensation picture,” said Sie- berg. “While they currently don’t add up to a large per- centage of overall claims, they can cost from two to five times the amount of traditional claims, and run two to five times as long.” Mental health claims are also more likely to be litigated, further escalating costs. Many states are introducing regulations that help fuel the growth of mental health claims. For example, there is an increasing presumption of a work-related nature for reported psychological and stress-related injuries. Fur- thermore, many states are no longer requiring that mental health claims be preceded by physical injuries. It used to be that a worker claiming work-related de- pression would have to show that a preceding event such as a back injury caused mental stress by keeping them from carrying out their normal daily routines. “Today, em- ployees might claim they were abused in the workplace by a coworker or a manager, or they witnessed an event that caused psychological damage,” said Tierney. Reducing Costs Employers are not powerless to navigate the more CONTINUED ON PAGE 28
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September 22, 2025
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