While a number of our posts have focused on workers’ compensation fraud, there is a growing problem among the manufacturing industry with regard to workers’ compensation costs. Essentially, the steady increase in costs has caused a number of smaller companies to relocate to other regions of the country.
With each company that moves away from Los Angeles, it means fewer jobs for the regional economy; which in turn, means fewer tax revenue and possibly fewer services that the city can provide. A recent Bloomberg News report highlighted a company that previously resided in El Segundo was on pace to save more than $600,000 by relocating to central Indiana. The savings of health care costs, workers’ compensation insurance and property costs all played into the company’s decision to move.