The roots of Workers Comp run deep in Wisconsin
The 1911 Workmen’s Compensation Law provided a legal path to establishing a new worker’s compensation insurance system. But by taking out insurance policies to guard against dangers to their employees, employers also had to acknowledge that they could be held accountable for injury or death of people on their payroll. The Wisconsin law also created a legal precedent for the right to a safe workplace for all employees.
In response to the Workmen’s Compensation Act and the many similar state laws that followed, a whole new insurance industry was born, with the first company emerging in Wausau. Soon after passage of the 1911 law, a circle of influential businessmen called The Wausau Group founded the Employers Mutual Liability Insurance Company of Wisconsin. This new company then went on to provide workers compensation insurance for the many businesses controlled by the Wausau Group. Listen below as long time council member James Buchen talks about the history of the system.
James Buchen
The Grand Bargain
The great political compromise that laid the groundwork for Wisconsin’s worker’s comp system is often referred to as “The Grand Bargain.” Workers injured on the job gave up the right to sue their employers for personal injury damages in return for certain benefits. Click on the video below to hear Steve Peterson from the Wisconsin Department of Workforce Development explain more about what that means.
Steve Peters
Wisconsin’s system has stood the test of time.
Wisconsin’s worker’s compensation system is one of the most stable and low-cost in the nation. As market conditions change the Wisconsin Worker’s Compensation Advisory Council provides a platform to make sure the worker’s comp system meets the needs of Wisconsin’s employers and their workforce. The system requires (and thrives) on compromise - something other states often lack. The challenges Texas and Oklahoma faced are a couple of examples.
We can learn from the mistakes other states have made with their worker’s comp systems and are eager to work with the more than 30 new members of the Wisconsin Legislature set to take office in January 2023. The Worker’s Comp Works Coalition is focused on educating those legislatures about the system, why it works, and why our partners support it.
The failure in Oklahoma
In 2014 employers in Oklahoma were given the option to opt out of worker’s comp. Two years later the Oklahoma Supreme Court decided that all workers were entitled to injury benefit packages. The experience cost employers millions of dollars and compromised the rights of tens of thousands of workers.
The Texas opt-out
In Texas, companies can opt-out of traditional worker’s compensation insurance and self-insure. Companies are allowed to virtually write their own policies - creating rules and requirements that greatly disadvantage injured workers.
Some require workers to report an injury by the end of their shift or forfeit any right to coverage. This means if a worker is hurt during the day but believes that the injury is not serious, if they are wrong, they are stuck dealing with the consequences of the injury on their own.
