Workers in New Jersey may want to think about how their employer is or is not ensuring their safety. The larger the company, the more resources it has to maintain safety. At the same time, a larger company is more likely to actually neglect safety. One international study has concluded that companies that face workers’ compensation claims survive up to 56% longer than companies that do not.
This study analyzed more than 100,000 Oregon-based organizations and measured their survival rate over a 25-year period. “Survival” meant ongoing operations even in the face of an owner change. Researchers found that it pays for larger, older and more established companies to ignore workplace safety and simply face the consequences. That includes dealing with workers’ comp claims and paying the fines for safety violations.
The benefits of facing workers’ comp claims was clearly seen among companies with more than 100 employees. The same positive outcome was found to hold until quarterly claims reached $9 million, but few companies ever reach that amount. There were few or no financial advantages to companies with fewer than 30 employees.
As for why claims help with profits and survival, researchers were unable to provide an explanation. The study reinforces how few businesses there are that can adequately balance safety with concerns about productivity and survival.
Workers’ compensation law states that injured employees can receive benefits regardless of who, if anyone, was at fault. These benefits include wage replacement, reimbursement for medical expenses and coverage for those who incurred a temporary or permanent disability. However, employers may have sufficient reason to deny a claim. Whatever the nature of their case, victims may want a lawyer to assist them with filing the claim and, if necessary, the appeal. Workers might also consider settling their case.