10/23/2008
CONTACT: Bill Herrle, 850-681-0416
TALLAHASSEE, Fla. -- The National Federation of Independent Business/Florida is disappointed by today's Supreme Court decision striking down the workers' compensation attorneys' fee schedule.
The court overturned reforms passed in 2003 that changed the basis of workers' compensation attorneys' fees from an hourly rate basis to a percentage of the benefits won through litigation. This single aspect of the reform, part of an overall expansive package, has been credited for the steady workers' compensation rate decreases Florida business owners have enjoyed since 2003.
"Workers' compensation rates have dropped over 50 percent in the last five years and were scheduled to continue to decrease," NFIB/Florida Executive Director Bill Herrle said. "However, this Supreme Court ruling jeopardizes the low rates, which is devastating for small business owners. Losing the attorneys' fee schedule will cost the small business community hundreds of millions of dollars at a time when they can least afford it."
This decision comes the same day as the Florida Office of Insurance Regulation's received a proposal for an 18.6 rate reduction from NCCI, which would drop rates for the sixth consecutive year.
Herrle says he expects the NCCI to submit an emergency rate filing in response to this opinion, which would override the pending rate reduction filed today.
"Any emergency rate filing is not going to be good news for small business," Herrle said.
The court opinion draws immediate battle lines between the business community and the trial lawyers for the 2009 Legislative Session. Unbraiding the 2003 attorneys' fee schedule has been a top priority of the trial lawyers since the reform passed.
"NFIB and the business community will be compelled to push for legislation re-establishing the attorneys' fee schedule," Herrle said. "We have come a long way in alleviating the burden of workers' compensation rates on Florida's small businesses and it is vital that we re-write the fee schedule. We cannot surrender the reductions it has brought the business community."
