Many states and cities are enacting new minimum wage laws, and all will feel the impact. Not only will the cost of goods go up, but also every business will see an increase in workers’ compensation costs. Those business with a high minimum wage work force will see an even higher premium increase.
In California for example, the wage increase affects 43% of the state’s workforce and makes California’s minimum wage the highest in the country. Oregon Just passed a statewide minimum wage as well. Alaska, Arkansas, Colorado, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, Rhode Island, South Dakota, and Vermont also increased minimum wages in 2016.
The $15 per hour by 2020 may not seem like it would have much of an impact the entertainment industry, with its reliance on handsomely paid creative professionals and union presence. Caterers, prop houses, nurseries and numerous other businesses that support Hollywood productions pay many of their worker’s minimum wage or close to it, and an increase in their costs for workers would likely get passed along. (Variety.com)
Increased wages will mean increased payroll, and your workers’ compensation premiums are based on your payroll. With increased payroll, come increased benefits, which lead to increased overall claims costs and experience mods.
What is Workers’ Compensation?
Workers’ compensation insurance is insurance that provides lost income, medical benefits, disability benefits, and rehabilitative services for workers injured on the job or while performing work-related duties.
Why Your Business Needs Workers’ Compensation Insurance
When one of your employees gets hurt on the job or has a work-related illness, only workers’ compensation will cover them. Health insurance benefits will not provide coverage for on the job injuries.
It is important to use an agent with commercial experience to help your business find the right combination of coverage, price, and service.
MovieInsure.com offers a wide variety of A-rated, admitted and Non-Admitted insurance companies for our clients to choose from. We only deal with companies that are on the Insurance Commissioner’s approved list. We are located in beautiful Northridge, California next to CSUN