AMAZON FACING POSSIBLE RISING WC CHARGES

According to Washington state’s workplace safety regulators, Amazon.com warehouse employees are being injured at a higher rate than other warehouse employees. These higher injury rates are likely due to highly automated processes in place at their warehouses like robots that help to move goods around.  Resultantly, a new “fulfillment” center classification for workers’ compensation rates has been proposed.  If this classification is approved, Amazon workers’ compensation costs in Washington state would increase about 15% in 2021 to $2.17 per employee hour while other warehouse businesses would see a decrease of about 20% to $1.51 per employee hour.  Despite these possible rising WC charges, online sales during Covid-19 has led to a share price increase of 70% for Amazon.  The company also operates out of California, Kentucky, Oregon, Ohio and Pennsylvania and it’s predicted that these other states might follow Washington’s lead given current injury rates.  If put into effect in multiple states, the proposed new “fulfillment center” classification could mean tens of millions of dollars in extra workers’ comp charges each year.  While Amazon continues to reiterate that they have extensive safety measure in place, the Center for Investigative Reporting just last month obtained internal company date that says otherwise.  The current data shows injury rates at Amazon facilities to be higher than the industry average.  Time will tell regarding this decision as the labor regulator is scheduled to hold two public hearings this week.

Source: https://www.carriermanagement.com/news/2020/10/26/213030.htm?ref=insurancedailynews