In this video, we’re going to address the question of why employers fight workers’ compensation claims in California. My name is Matt Eason. I’ve been practicing workers’ compensation and employment law for over 25 years here in Sacramento, and we’re regularly asked by injured employees, “Why is my employer fighting my workers’ compensation claim?”
Please click here to view the video.
It takes a slight modification of the question to answer that question correctly. Is it the employer fighting your workers’ compensation claim or the employer’s insurance company fighting your workers’ compensation claim? We’re going to answer both of those in this video.
Understandably, we will have an employee coming to our office who has worked for their employer for 25 years. They have never missed a day at work, are diligent servants to the employer, and love their job and their employer. They are frustrated that their personality turned against them when they filed a clear and valid workers’ compensation claim and want their employer to understand why.
From the employer’s perspective, they feel compassionate towards their employees, want their employees to get better, and want to support them during this time off.
Their workers’ compensation rates are typically based on their industry. Those rates are then modified based on the losses that they’ve suffered from workers’ compensation or a good safety record. An employer’s workers’ compensation rate could be very similar to, for example, your car insurance rate. If you have a long history of being a safe driver, you will see a discount on what the average driver in your situation would pay.
For example, you might pay 85% of what someone like you would be paying who just went to that company for the first time. In contrast, if you’ve got points on your record for causing an accident from speeding tickets, you’ll pay more for your car insurance than someone just like you because you’ve had exposure to your policy.
Workers’ compensation from the employment perspective is very similar. If an employer goes for a significant amount of time without any claims or only minimal claims, they may get a reduction in their premium such that they actually may get a discount.
In contrast, if an employer has claim after claim or a considerable claim that costs the insurance company a large amount, they will pay a higher premium. Because of that fear of paying a higher premium and arguably greed based on wanting to make more money at your expense, employers often will fight employee claims when they really should not.
Concerning your employer’s insurance company fighting your workers’ compensation claim, that’s pretty simple. Insurance companies, by and large, are businesses or run like businesses. As a business, they want to make a profit. And how do you make a profit? You increase premiums, and you decrease expenses, and no matter how justified your claim is, how right your injuries are, you’re an expense, and if they can reduce that expense, they have a better bottom line, and that’s why they’re doing it.
While it’s unfortunate that employers and insurance companies fight valid workers’ compensation claims, the reality is that they do. Hopefully, this video addressed some of the reasons they do so, giving you an understanding of what you’re dealing with. Again, my name is Matt Eason, and if you have any questions about your workers’ compensation claim, I hope you contact my firm or me. The firm name is Eason & Tambornini.
