This week, the Florida’s Office of Insurance Regulation approved the National Council on Compensation Insurance’s (NCCI) rate filing calling for a 1.8 percent reduction in Florida’s workers’ compensation rates. According to NCCI, the rate reduction comes as a result of the Tax Cuts and Jobs Act.
“Relief from the Tax Cuts and Jobs Act is being felt by small business owners in a multitude of ways. This rate reduction is simply more evidence that federal tax cuts are good for small business,” said Bill Herrle, NFIB/Florida Executive Director.
According to NCCI, various provisions in the Tax Cuts and Jobs Act impact workers’ compensation rates, including the reduction of the corporate tax rate from 35 percent to 21 percent.
“Small business optimism has been on the rise since the Tax Cuts and Jobs Act,” Herrle said. “According to NFIB’s monthly optimism index, small business owners are reaching record levels of optimism. They like what they see in the federal tax cuts and they’re responding by raising wages, hiring workers, and enacting expansion plans. Workers’ compensation rates are a major piece of the puzzle for Florida business owners, and a reduction in rates is likely to push their optimism even higher.”
While the rate reduction, which will go into effect June 1, 2018, is welcome news for small business owners, NFIB remains wary of the underlying cause of workers’ comp rate inflation – out of control attorneys’ fees.
“Until we cap attorneys’ fees, unstable workers’ comp rates are the real threat to the small business community in Florida,” Herrle said.
Contact: Kristen Butler, [email protected], 850-681-0416