AUGUSTA – Three candidates for governor are speaking out in favor of business-friendly changes to the state’s workers’ compensation law.
Republican Peter Cianchette, independent David Flanagan and Democrat John Baldacci have all said that a recent state supreme court decision will increase insurance rates. Each is supporting emergency legislation to overturn the ruling.
The court ruled in February that non-work-related injuries must be taken into account if a combination of old injuries and newer on-the-job injuries prevents a return to work.
Businesses and insurance companies estimate the ruling could prompt a 15 percent increase in workers’ compensation rates, equal to about $45 million annually.
Cianchette last week endorsed legislation pushed by Gov. Angus King that would overturn the Supreme Judicial Court’s decision.
“Maine jobs are at stake here,” he said. “Companies simply cannot afford higher workers’ compensation costs.”
Two days later, Flanagan announced his support for the bill, warning that the workers’ compensation system faces a “disaster” if nothing is done.
Flanagan said the court’s ruling “turns back the clock on Maine workers’ comp to the dark ages, when astronomical costs nearly collapsed the system,” referring to the early 1990s.
Baldacci, the 2nd District congressman, said last week that changes in the law are necessary.
He said he voted on sweeping workers’ compensation reforms in 1992, when the divisive issue forced the shutdown of state government.
“I’ve already been confronted by the tough issues and I’ve already made the tough decisions,” Baldacci said. “We need to recognize that employers and employees can’t absorb the cost of this ruling.”
The 1992 reforms weakened the rights of injured workers and reduced the amount of money they can collect for on-the-job injuries.
Those changes have reduced workers’ compensation rates dramatically. Last year rates fell by $30 million.
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