June 13, 2001
Workers
comp reform efforts follow court's May decision
Small businesses throughout the state are looking for a fix for
potentially devastating lawsuits that could result
By Christie Scotty - NewBerg
Graphic reporter
After word came last month that a state Supreme Court case
determined that workers injured on the job could take their case to civil
court if denied workers’ compensation claims, some in management
began to worry.
But in the month since the decision, reform efforts
have been underway by both legislators and small business groups,
claiming they want to help protect small businesses from the potentially
fatal blow of expensive lawsuits.
That could be a welcome measure of protection for
local businesses.
"My guess is we’re looking at at least 85 to 90
percent (of Newberg businesses) are small businesses," said Newberg
Area Chamber of Commerce Director Ann Pesola. "That’s a rough estimate
and it could be even more."
Pesola added that an exact count would depend on
the specific definition of how many employees constitute a small
business, but said the effects of litigation are clear nonetheless.
"I think small businesses would want to avoid (lawsuits)
at all costs," she said. Of course, no one is sure that
the ruling will unleash a wave of lawsuits.
The May 10 Smothers Decision ruled unconstitutional
the idea that workers’ compensation can be the exclusive remedy for
workers, on the grounds that it denies employees their right to legal
redress.
Since the ruling, the lobbying group Oregon Small
Business Coalition has worked to push a system where the employer
would be liable to pay only an amount that corresponds to the portion of
the illness or injury for which they are found responsible.
A legislative workgroup has been working to find
a similar solution to the dilemmas some see posed by the court ruling,
but has so far been unable to reach an agreement.
Labor groups remain opposed to efforts excusing
employers from full compensation in cases of negligence.
Reprinted with permission of the NewBerg
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