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Governor Signs Pennsylvania WC Reform

[Posted 6/27/96] Despite the fierce objections of organized labor, Pennsylvania Governor Tom Ridge signed a comprehensive workers’ compensation reform package on June 24, 1996. The new bill was based on Ridge’s five principles of WC reform:

  • prompt return of injured workers to the workforce,
  • pay benefits only to legitimate claimants,
  • make sure that benefit payments are commensurate with pre–injury earnings,
  • reduce the administrative and litigation costs, and
  • pass savings back to employers.

The WC Reform bill is part of a larger program to increase Pennsylvania’s competitiveness. "We will continue to challenge the status–quo—and restore Pennsylvania’s competitiveness," Governor Ridge said.

(Editor’s Note: Further evidence of the national trend in WC reform which is causing a significant reduction in WC insurance rates and improvement of insurance profits. Given the strong competition between states to attract new employers, this reform movement is likely to continue. wln)