Business groups back cap on workers’ compensation COLAs; labor calls it a cut
Supporters, including self‑insurers and business groups, endorsed SB 5,927 to cap future workers' compensation COLAs at 3% to stabilize rates; labor and injured‑worker advocates said the cap would undermine long‑term wage replacement and urged alternative reforms.
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Senate Bill 5,927 would cap future cost‑of‑living adjustments for workers' compensation time‑loss and pension benefits at 3% beginning July 1, 2026. Committee staff reported recent COLAs (2023: 7.5%; 2024: 5.9%; 2025: 6.8%) and an IT fiscal cost of roughly $232,000; staff also summarized an estimate that a 3% cap could reduce supplemental pension fund outlays by hundreds of millions under certain assumptions.
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