Managing Member Alan G. Brackett and Associate Noah R. Borer are co-authors of an “Attorney Analysis” column for Reuters Legal News and Westlaw Today. Their recent article, “Changes to state workers’ compensation insurance rates and laws reflect national trends,” was published on January 7, 2025.
Changes to State Workers’ Compensation Insurance Rates and Laws Reflect National Trends
2024 was a busy year for officials in state regulatory agencies and legislatures as they addressed workers’ compensation rates and laws in an effort to reduce costs for employers, provide notice of an employee’s right to counsel, and expand workers’ compensation benefits entitlement to first responders among other legislative issues.
One trend that has emerged from the regulatory side is a decrease in state workers’ compensation rates for employers. As for new and proposed legislation, much of it expands protections for workers. Following is a recap of some of the changes to state workers’ compensation rates and laws that you can expect to see in 2025.
Changes to workers’ compensation rates
In September 2024 the National Council on Compensation Insurance issued a recommendation for a 6.1% overall average reduction in workers’ compensation insurance premium rates for 2025 in Connecticut. The NCCI’s filing with the Connecticut Insurance Department also included a proposed 6.2% average cut in certain, assigned risk market rates.
The NCCI’s recommendation reflects an ongoing trend of a reduction of workers’ compensation premium rates over the past several years in many states. This is due to technological work practices allowing employers to find ways to leverage automation, mechanical assistance, and other technology to reduce the risk of injury to employees, to management practices in which employers focus towards better hiring practices and strategies to return injured employees to work, and to increased investing in safety programs.
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