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Established companies may have an incentive to neglect safety

| Jun 2, 2020 | Blog, Workers' Compensation

According to one international study, it appears that the older and more established a company is, the more it can afford to neglect worker safety. In fact, such a company can ensure its survival precisely by dealing with workers’ compensation claims and paying out fines for safety violations. Workers in Wisconsin may want to know more.

The study examined the survival, over a 25-year period, of more than 100,000 organizations based in Oregon. It found that companies with over 100 employees that met with workers’ comp claims had a greater likelihood of surviving, or continuing their operations even in the face of an owner change, than did those similar-sized companies that dealt with no claims. This difference was not seen in companies with fewer than 30 employees.

In all, the likelihood for survival is 56% higher for companies that face workers’ comp claims. Researchers could not explain why this is so, but their results do reinforce the fact that business owners all face a dilemma. Only in rare cases can a business balance both safety and profit. And those smaller companies that want to keep workers safe lack the resources to do so. Researchers suggest that innovative ways to improve both profits and worker safety should be encouraged through new regulations.

The workers’ compensation laws in place allow injured employees to seek out and receive benefits, including wage replacement and reimbursement for all their medical expenses. Those who have been temporarily or permanently disabled may receive compensation as well. Benefits are paid out in installments, but victims may choose to settle their claims. Before doing anything, though, it may be best to hire an attorney for advice and guidance. The lawyer may help file the claim and, should the employer deny payment, any appeals.