Darryl L. DePriest is the seventh presidentially appointed and Senate-confirmed Chief Counsel for the Office of Advocacy.
Prior to joining the Small Business Administration Office of...
United States Small Business Administration
Office of Advocacy
State Unemployment Compensation
and Workers' Compensation Programs:
A Review of Major Legislative Changes,
Program Costs and Suggested Reforms
by the National Foundation for Unemployment Compensation and Workers' Compensation
1996. 159p. The National Foundation for Unemployment Compensation and Workers' Compensation, 1331 Pennsylvania Ave., N.W., Washington, D.C. 2004-1703, under award no. SBA-HQ-95-M-0595
State unemployment compensation and workers' compensation programs are intended to insure against the interruption of income due to the loss of a job, either because of temporary layoff or inability to work as a result of an injury or illness in connection with work. The objective of this study is to identify both "cost-driver" and "desirable" provisions of the two programs that can significantly affect employer costs. Wherever possible, the study highlights issues that specifically apply to small businesses.
The discussion of "cost-driver" provisions--provisions that drive costs up--is intended to help small employers in their efforts with state legislators to enact needed program reforms. The discussion of "desirable" provisions--provisions designed to reduce or contain escalating costs while continuing to provide reasonable benefits and coverage for worker--is intended to help small employers, in particular, evaluate specific provisions that could be included in a state's unemployment compensation and workers' compensation laws.
Scope and Methodology
The National Foundation for Unemployment Compensation
and Workers' Compensation, founded in 1984, was established to collect data, conduct research, and analyze current issues relating to unemployment compensation and workers' compensation.
The Foundation has researched the provisions of each state's unemployment compensation and workers' compensation laws and reviewed all major legislative changes affecting these programs since 1984. A state-by-state summary of such changes occurring for the four-year period 1990-1993 is provided in this report. The Foundation's suggested "desirable" provisions are the result of this analysis.
For each state, the "total cost" of benefit payments is reported for each program for the last 10 years for which data are available (1984-1993). Unfortunately, the data do not enable the Foundation to isolate the cost impact for small employers.
On the basis of total cost data, calculations were made of average cost per covered employee for each state in each year for each program. To provide another measure in evaluating the impact of state legislative changes, the Foundation computed the average cost rate (total benefit payments as a percent of total covered wages) by state for each year. To the extent possible, the Foundation has identified the correlation of the cost impact of major legislative enactments for each program in selected states.
The Foundation has attempted to identify the most important provisions in states' unemployment compensation and workers' compensation laws that can significantly affect costs to employers. This information will prove helpful to small employers in determining the kinds of cost-saving legislative changes they might want to present to their state legislators.
The complete report is available from:
National Technical Information Service
U.S. Department of Commerce
5285 Port Royal Road
Springfield VA 22161
(703) 487-4639 (TDD)
Order number: PB96-193396
Cost: A09; A02 Microf.
*Last Modified 6-11-01