BOSTON, MA - For the fourth consecutive year, the Baker-Polito Administration reduced the assessment rate employers pay to the state on workers’ compensation insurance policies.
For Fiscal Year (FY) 2019, employers will pay an assessment of 3.83 percent on their insurance premium, which is a 16 percent decrease from the previous rate of 4.56 percent. The new rate will go into effect July 1, 2018.
The Department of Industrial Accidents (DIA), an agency within the Executive Office of Labor and Workforce Development, administers the workers’ compensation insurance system, and annually establishes assessment rates. During previous years, the Baker-Polito Administration reduced the rate from 5.6 percent to 4.56 percent for FY’ 18, 5.75 to 5.6 percent for FY’ 17, and from 5.8 to 5.75 percent for FY ‘16.
“The Baker-Polito Administration is excited to announce that the employer assessment rate for workers compensation insurance will be lowered for a fourth consecutive year,” said Labor and Workforce Development Rosalin Acosta. “This rate assessment decrease will lessen the financial burden on employers while maintaining the financial stability of the fund in order to cover the needs of those injured on the job.”
The Massachusetts Workers’ Compensation system is in place to make sure workers are protected by insurance if they are injured on the job or develop a work-related illness.
Under this system, all employers in Massachusetts are required by state law, Massachusetts General Laws Ch. 152, Sec. 25A, to carry workers’ compensation insurance covering their employees. The insurance pays for any reasonable and necessary medical treatment for a job-related injury or illness; pays compensation for lost wages after the first five calendar days of full or partial disability; and in some cases provides retraining for employees who qualify.
DIA is funded through assessments on workers’ compensation policies, and self-insurance programs for employers operating in Massachusetts. In addition, DIA collects statutory fines and fees.