Workers' Compensation in South Carolina
Issue Overview: The South Carolina Senate passed S. 332 on April 10, 2007. The bill contained some reforms advocated by NFIB, including the penalties for fraud, elimination of the Second Injury Fund and more transparency in the system for participating employers, commissioners and insurance carriers. However, the bill did not address all the reforms advocated by NFIB, including caps on commissioner discretion, defining repetitive trauma and reworking many extreme state Supreme Court opinions.
The South Carolina House of Representatives passed S. 332 on May 17, 2007. Significant revisions were made to the bill during the committee process that strengthened the legislation for small business. Many amendments were drawn from a separate bill, H. 3799. Some reforms for small business in the House-passed version are sun-setting the Second Injury Fund, establishing penalties for fraud, repealing the 50 percent back rule, reworking several extreme state Supreme Court opinions and enabling more transparency in the system for insurance carriers.
The legislation will be sent to the Senate for concurrence in the House amendments. If the Senate concurs with the changes, the bill will be sent to Gov. Mark Sanford for his signature. If the Senate does not concur, a conference committee will be held to negotiate differences between the two versions of the bill.
NFIB Position: NFIB members need meaningful workers' compensation reform signed into law this year. Through NFIB member ballots and a series of Area Action Council meetings, it is clear that a comprehensive solution is the best avenue to resolving the workers' comp crisis in South Carolina. Elements of comprehensive workers' comp reform should include:
- Requiring the use of guidelines when determining claimant's awards (93 percent of NFIB/South Carolina member respondents support on the most recent ballot)
- Systematically dissolve the Second Injury Fund (77 percent support on the most recent member ballot)
- Clarify the definition of "repetitive trauma" (89 percent support)
- Require expert medical testimony to prove causation in a medically complex case (93 percent support)
- Strengthen the penalties for claimant and premium fraud
- Review and rework extreme interpretations of workers' comp law by the state Supreme Court
- Ensure transparency in the system for participating employers, commissioners and insurance carriers.
NFIB Actions: NFIB has been front-and-center in the workers' comp debate. In September and October 2006, NFIB held seven Area Action Councils meetings attended by more than 200 NFIB members and individuals. Several key legislators including House Speaker Bobby Harrell, Senate President Pro Tempore Glenn McConnell, Senate Judiciary Subcommittee Chairman Larry Martin and House Labor, Commerce and Industry Chairman Harry Cato participated in these town hall meetings to hear the concerns and experiences of small business.
In February, NFIB members from Colleton and Spartanburg counties testified before the Senate Judiciary Subcommittee on the workers' comp crisis. One week later, State Director Jay W. Ragley testified and provided recommended legislative solutions, including capping commissioner discretion, penalties for fraud and eliminating the Second Injury Fund "tax" on small business. NFIB subsequently mailed a letter to each senator informing them that S. 332 and any amendments to the bill would be "key votes" in the 2007-08 NFIB/South Carolina Voting Record.
As the bill worked its way through the committee process, NFIB engaged its membership to contact their senators. Many answered the call and because of NFIB's support, key reforms such as elimination of the Second Injury Fund and penalties for fraud were including the Senate-passed bill.
NFIB worked with the House Labor, Commerce and Industry Committee to strengthen S. 332. NFIB engaged its membership to contact their representatives about the need for a stronger bill, and many members answered the call. Because of NFIB member involvement, S. 332 was strengthened and approved unanimously by the committee. NFIB mailed a letter to each representative informing them that S. 332, as amended by the committee, would be a "key vote" in the 2007-08 NFIB/South Carolina Voting Record.
What to Do: Contact your county delegation to the General Assembly, and tell them small business needs comprehensive workers' compensation reform this year. Specifically contact your senator and ask them to concur with the House amendments to S. 332.
What to Say: Ask your legislators to support the seven key reforms mentioned above, but also discuss your personal experiences with workers' compensation. A personal touch will leave a lasting impression with your legislators, so please share your experiences, concerns and problems with the workers' compensation system.
