Florida 2024 Work Comp Update and Top 10 PEO Benefits
2024 Workers’ Compensation Rates – Update
Public Hearing
As we mentioned in last month’s communication, NCCI is recommending a 15.1% rate drop for Florida’s workers’ compensation rates in 2024. If passed, Florida’s workers’ compensation rates would have dropped by nearly 89% in roughly the last 20 years.
The OIR held a rate hearing yesterday to hear testimony from NCCI and received public comment on the proposed workers’ compensation insurance rate change to be effective January 1, 2024.
The Insurance Journal covered the hearing. They reported, “The latest proposed decrease filing in Florida is based on improvements in experience, trends and benefits in policy years 2020 and 2021. Lost-time claims frequency has declined over the past decade. Medical expense trends also have dropped, despite a 2023 Florida court ruling that upheld a change in hospital reimbursement that carriers have said would raise some costs.
Going forward, medical expenses could drop slightly due to the new fee schedules adopted by the state Division of Workers’ Compensation, Foster said. Carriers also have seen improved yields from bonds and higher interest rates in the past year.”
However, not all attending the hearing were in favor of lowering rates. The FRSA had several representatives requesting, even begging, to freeze the rates.
The Insurance Journal also reported, “Workers’ compensation rates have shrunk to such a low level in Florida, at least for some classifications, that they are causing problems and could be masking issues that will lead to higher premiums in coming years, Florida roofing contractors said Thursday.
“I’m not asking. I’m begging you to freeze rates for roofing classifications,” said Ralph Davis, of Streamline Roofing, in Tallahassee.”
The OIR will not make any decisions until after the public comments time period has ended. Public comment will remain open on the rate change hearing until October 19th.
For the full article, here is the link to the Insurance Journal
10 Ways A PEO Helps Small Businesses
A Professional Employer Organization (PEO) can be a valuable partner for small businesses by providing a range of HR (human resources) services and benefits. Although there are many, here are 10 ways a PEO helps small businesses:
- Access to Employee Benefits: PEOs often have access to a broader range of employee benefits, such as health insurance, retirement plans, and wellness programs, that small businesses might not be able to secure on their own. This can help small businesses attract and retain top talent.
- Cost Savings: PEOs can help small businesses save money in several ways. They can leverage their collective purchasing power to negotiate better rates on benefits and insurance plans. Additionally, they handle payroll processing, reducing the need for an in-house payroll department.
- HR Expertise: PEOs are staffed with HR experts who can provide guidance on compliance with labor laws and regulations, help with employee relations issues, and assist with performance management. This expertise can be invaluable for small businesses that may not have dedicated HR staff.
- Time Savings: Small business owners and managers often spend a significant amount of time on administrative tasks like payroll, benefits administration, and HR paperwork. PEOs take on these responsibilities, allowing business owners to focus more on core operations and growth.
- Compliance Assistance: PEOs help ensure that small businesses comply with federal and state labor laws and regulations. They can handle tax filings, workers’ compensation administration, and other compliance-related tasks, reducing the risk of costly penalties.
- Risk Management: PEOs often provide risk management services, including safety training and workplace safety programs. This can help small businesses reduce workplace accidents and workers’ compensation claims.
- Scalability: As small businesses grow, their HR needs can become more complex. PEOs offer scalable solutions that can adapt to a company’s changing requirements, making it easier to manage growth.
- Employee Support: PEOs can offer employee assistance programs (EAPs) to help employees with personal issues that may affect their work performance, such as stress, financial problems, or family challenges.
- Improved Employee Experience: By providing access to better benefits, HR expertise, and streamlined processes, PEOs can enhance the overall employee experience. Happier employees are more productive and tend to stay with the company longer.
- Access to Technology: PEOs often provide access to HR and payroll technology platforms that small businesses might not have the resources to implement on their own. This can simplify HR processes and improve data accuracy.
Overall, a PEO can serve as an extension of a small business’s HR department, offering valuable resources and expertise that can improve operations, reduce costs, and enhance the overall work environment for employees. However, it’s essential for small businesses to carefully evaluate PEO providers to ensure they align with their specific needs and goals, which is precisely why the best practice is to use a PEO broker or agency to find the right PEO for the right price. Bridgely Key Options works with business owners and PEO brokers to help create the best outcome.