14 House GOP members are opposing a proposal to increase workers’ compensation insurance by roughly 40 percent.
In a letter to Delaware’s Department of Insurance, the House Republican Caucus calls the requested increase “exorbitant” and potentially damaging to the state’s economy.
“Can you imagine me telling you your rent or your mortgage payment is going to go up by 20 or 40 percent? People would be outraged by that," said House Minority Leader Dan Short (R-Seaford).
In the short term, Short (R-Seaford) believes the uncertainty of how much the increase might be is limiting opportunities to put unemployed Delawareans back to work.
"It creates such an uncertainty in the business environment that stifles the hiring that might occur. It stifles the expansion that might occur because they have no idea at this particular point what that rate increase might be," said Short
Short adds the timing of the proposed increase also presents serious implications for business planning.
“One of the things that is very, very important here is these rate increases take place in December and we’re already into December so this is leaving a lot of folks over the holiday season and into the first of the year with no idea what their workers’ compensation costs are going to be for 2013 and even into 2014.
The application to increase the rates was submitted last August by the Delaware Compensation Ratings Bureau.
A public hearing on the proposal will be held Thursday Dec. 20 at the Carvel State Office Building in Wilmington.
First State businesses are required to buy workers' compensation, which is intended to cover employees who suffer an on-the-job injury or illness.