Safe Workplaces Lead to Reduced Pa. Workers Comp. Costs

Feb. 13, 2008
Pennsylvania Governor Edward G. Rendell announced a 10.22 percent overall decrease in workers’ compensation costs, which will result in $250 million in savings for Pennsylvania employers.

Rendell, who said the state has experienced significant decreases in the frequency of workers’ compensations claims, attributed the reduced costs to safer workplaces. He also claimed the Work Safe PA initiative, which was implemented 5 years ago, helped businesses and employees improve the workplace safety practices that led to lower costs.

“Right now, Pennsylvania employers are benefiting from the excellent job they are doing to provide safe workplaces for their employees,” Rendell said. “Additionally, our workers' compensation insurance system remains strong and competitive.”

The 10.22 percent cost decrease is an average; costs and savings will vary by business type and claim history, and not all employers will see savings. In addition, businesses with state-certified workplace safety committees will receive a five percent discount on their workers' compensation premiums. Unemployment compensation taxes for 2008 also will be reduced an estimated $141 million.

This is the fourth time the Pennsylvania government has reduced workers’ compensation costs since 2003. In total, these four deductions equal more than $750 million in savings for employers in the past six years.

The announcement comes a week after Rendell presented a budget proposal that reflects a business tax cut of $100 million in 2009, with the continued phase out of the capital stock and franchise tax.

About the Author

Laura Walter

Laura Walter was formerly senior editor of EHS Today. She is a subject matter expert in EHS compliance and government issues and has covered a variety of topics relating to occupational safety and health. Her writing has earned awards from the American Society of Business Publication Editors (ASBPE), the Trade Association Business Publications International (TABPI) and APEX Awards for Publication Excellence. Her debut novel, Body of Stars (Dutton) was published in 2021.

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