An end-of-year release of a national survey on workers’ compensation insurance rates showed Washington dropping 10 places, which, according to the state’s largest small-business advocacy group, the National Federation of Independent Businesses (NFIB) threatens to stall any prospects for full economic recovery.
   We’ve been saying all along that Washington has to reform its workers’ compensation system the same way it did its unemployment insurance system,” said Carolyn Logue NFIB/Washington state director. “This must be a top priority for the new legislature, otherwise more hospitable states surrounding us will continue to better their economies at the expense of ours.”
   The 2004 Oregon Workers’ Compensation Premium Rate Ranking Summary, a biennial snap shot of rates around the country, placed Washington 35th, a 10-point drop from its 45th position two years ago. Workers’ compensation premiums are a mandatory tax on all businesses with at least one employee. Money from the insurance pays for medical care, rehabilitation, and lost wages of workers injured on the job through no fault of their own.
   In spite of the fact that the Department of Labor and Industries, which oversees the fund, is sitting on a reported $9 billion surplus, Washington companies pay anywhere between $2 and $2.99 per $100 of payroll, with an index rate of $2.20. Businesses in neighboring Oregon, by comparison, had an index rate of $2.05. The worst state was California, which had an index rate of $6.08, and North Dakota was the best at $1.06.
   Less than 15 years ago Oregon had one of the highest rates in the nation, causing a near economic meltdown, before making reforms to its workers’ compensation system that still serve as a national model. Logue said many of Oregon’s reforms should be implemented here. “Workers’ comp rates are one of the highest payroll taxes around,” said Logue. “When you add our nationally high minimum-wage rates to our soaring workers’ comp rates — not to mention dozens of other costs — it is no wonder why businesses already here have to throttle back on new hiring, and why businesses thinking of moving hear veer off to other states.”