Massachusetts state congress has passed a law earlier this winter that will leave you wondering as an employer, “am I properly covered?”, and as an employee “Is my employer doing everything that is required of him/her to protect me?”. A lot of employers have been trying to cut cost corners on their employees’ insurance coverage, but this article may leave them thinking twice about coverage.
The new law will hold employers responsible for failing to fulfill workers’ compensation insurance premiums. The law also provides employees, competitors, and other associates the right to sue a company that is properly documented in committing this crime. The biggest reason for the pass of this new law is employers trying to cut costs in this extremely competitive industry, often in order to offer lower bids. This issue is very prominent in various service industries such as construction and healthcare, because of the high price of workers’ comp “premiums can run between 50 to 80 percent of a company’s total payroll”.
What does this mean if you’re an employer? The bottom line is that an employee can sue for up to 25% of what is owed or a $25,000 maximum (whichever is less), and an additional 25% of what is owed or a $25,000 maximum, in compensatory damages. If you are an employee, the purpose of the law for you is not to make you suit happy by setting the maximum limit at $50,000, but to make sure you are properly covered. Make sure today that your business is covered, and/or that your employee has you properly covered.
To make sure you and/or your company are adequately covered by your MA Business Insurance, contact your local Encharter Insurance agent, and keep the legal battles to a minimum. Also find us online at www.encharter.com, or call us at 888-865-1244.
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