GOVERNMENT AFFAIRS

WORKERS' COMPENSATION RATES DROP FOR THE SEVENTH CONSECUTIVE YEAR

Effective October 1, 2022, Wisconsin employers will see an overall rate decrease of 8.47 percent in worker’s compensation rates for new and renewal policies. The joint announcement from the Department of Workforce Development (DWD) and Office of the Commissioner of Insurance (OCI) marks the seventh consecutive year that worker's compensation insurance rates have declined in the state. According to the DWD and OCI, the lower rates this year will save employers an estimated $146 million, although the overall impact will vary among employers and specific circumstances.

As the first state in the nation to enact a worker’s compensation law in 1911, Wisconsin continues to have one of the strongest and most competitive state sponsored worker’s compensation programs around. Much of the strength of the system is attributed to the Worker's Compensation Advisory Council (WCAC) process where representatives of Labor (workers) and Management (employers) spend several months every two years negotiating any public policy changes to the system and provide recommendations to members of the Legislature to be considered. Wisconsin’s worker’s compensation system guarantees coverage of medical care and rehabilitation costs for workers who get injured on the job in exchange for employers not being sued for those workplace injuries. This process maintains stability and predictability in the system which is a favorable outcome for everyone.

The latest rate decrease also reflects continued worker safety improvements by Wisconsin employers which have a record number of people working and a low unemployment rate of about 3.0 percent. The 2022 rate decrease was recommended by the Worker’s Compensation Rating Bureau (WCRB) and approved by the Wisconsin Office of the Commissioner of Insurance (OCI). Worker's compensation insurance rates are adjusted annually by a committee of actuaries from members of the WCRB. This independent body examines and selects the methodology and trends that produce the proposed rate adjustment, which is then reviewed and ultimately approved by the Wisconsin Commissioner of Insurance. The WCRB is a licensed rate service organization created in state statute. The WCRB is responsible for the classification of employers, the rates and rating plans used, all policy forms and endorsements, and the collection and analysis of all statistical and other data including the calculation and distribution of experience modifiers of employers. While not a state agency, WCRB is regulated by the OCI and works closely with the Worker's Compensation Division of the DWD and industry.

Data from the independent, nonprofit Workers Compensation Research Institute (WCRI) ranks Wisconsin among the lowest of 18 states with similar worker’s compensation systems in the time employees spend away from work after an injury, strong health care networks and return-to-work programs that support a smooth transition back into the workplace.

DWD's Worker’s Compensation Division administers the state's worker’s compensation program in conjunction with the WCRB, OCI, Self-Insurers Council, and the Worker's Compensation Advisory Council (WCAC). Most employers in Wisconsin are legally required to have Worker's Compensation insurance policies. The WCAC is set to consider changes to Wisconsin’s Worker’s Compensation law early next year in 2023.

See the WCRB rate revision announcement and information at bit.ly/OctoberGovAffairs.

Rate Level Change by Industry Group Manufacturing Contracting Office & Clerical Goods & Services Miscellaneous Overall

Rate Level Change -8.10% -8.01% -7.46% -10.03% -7.19% -8.47%

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