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The Florida Supreme Court declared the states scheme for handling injured workers unconstitutional in three cases earlier this year (One of them involving the City of St. Petersburg). The result, as Mike Vasilinda tells us, is a potential twenty percent increase in Workers Comp insurance for Florida businesses.

In 2003, Florida has some of the highest rates for the insurance business buy to protect injured workers. Changes that year cut the cost by 60 percent. But in three cases earlier this year, the Florida Supreme Court found the savings came at the expense of injured workers.

Lori Lovgren from the Natl. Council on Compensation Insurance told the panel “It found unconstitutional 4.40 related to attorney’s fees.”

The court also struck down a system that allowed 104 weeks of income after an injury and reinstated the 260 weeks in the law before the 2003 change.

A hearing on what to do next brought out every major industry in the state. Most say the ruling hurts business. Mark Wilson is the President of the Florida Chamber.

“It advantages trial lawyers and disadvantages injured workers:”

A state sanctioned, industry run commission is recommending a 19.6 percent increase.

“We’re here today because the law says rates can’t be inadequate” says Lovgren.

But Dr. Michael Helvacian, an expert hired by a pro business anti lawyer group says the rates need to increase at least 35 percent to be legal, but if they do, consequences will be dire.

“The demand for employees will be dampened because the costs, employers cost of doing business will be higher” says Helvacian.

The higher the rate hike after this courts ruling, the more likely big business can force the legislature to do something.

Many on both sides believe the rate hike is the beginning of what will be the biggest issue for lawmakers next spring. Rich Templin of the Florida AFL-CIO says the union just wants fair legislation.

“What we want is for the system to provide medical care and decent benefits for workers at the time of their injury when this happens.

The council is recommending higher rates for everyone as early as October.

One expert says the higher rates will slow job creation by one hundred six thousand each year. The decision is the first major rate case that will be made by the state’s new Insurance Commissioner.