N.Y. Lost Ground in 1999 Manufacturers' Workers' Comp Costs

Sept. 19, 2000
In 1999, New York State's workers' compensation\r\ncosts for manufacturers moved farther above the national average for\r\nthose costs, according to a recent study.

In 1999, New York State''s workers'' compensation costs for manufacturers moved farther above the national average for those costs, according to a study by the New York Business Council, the state''s largest employers'' organization.

Only nine states in the study were farther above the national average in these comp costs.

As costs in most states declined, New York manufacturers paid average workers'' comp costs that were 29.9 percent higher than the national average in the 12 months ending Jan. 1, 1999, said the study.

"We are moving in the wrong direction compared to competing states," said Business Council President Daniel Walsh. "New York is still better off than it was before the reforms of 1996, but the evidence is mounting that New York is now losing ground to its competitors and that more workers'' compensation reforms are needed."

In the study''s rankings of the states with the lowest comparative costs, New York ranked 36th among 45 states evaluated.

Five states were not evaluated in the study because each of the five provides workers'' compensation insurance exclusively through a state fund.

The Business Council sees comp costs as a key business-climate issue. "Workers compensation costs in New York have long been above the national average and these costs, especially for manufacturers, are considered a key indicator of a state''s economic climate," said Walsh.

Some notable rankings in the study included the following:

  • The state with the lowest comparative costs, Utah, had costs that were 58.6 percent below the national average.
  • New York''s neighbor states performed better than New York in the study: Massachusetts (15 percent below the national average); Pennsylvania (10.6 percent below the national average); Vermont (2.2 percent below the national average); New Jersey (.03 percent below the average); and Connecticut (.01 above the national average).
  • The study showed that manufacturers'' average comp costs nationally had declined for the sixth consecutive year. Six states saw decreases in comparative costs of more than 20 percent in this year''s study: Michigan, Montana, Louisiana, Massachusetts, South Carolina and Pennsylvania.

by Virginia Sutcliffe

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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