Chamber raps about workman’s comp, rising health costs
By Heather Milo
Acorn Staff Writer

Local business owners were urged to become more involved in the legislative process during the recent annual Westlake Village Business Forum, presented by the city of Westlake Village and the Thousand Oaks/Westlake Village Regional Chamber of Commerce. Keynote speaker Marlene Carney discussed the need for business groups to get organized and vocal to let legislators and the governor know how legislation is affecting their bottom line.

"You need to get involved," she said. There’s a lot of focus on public safety and social services in the legislature right now—which is fine, said Carney, but such topics can only be dealt with when there’s a healthy economy. The only way to give health to the economy is to allow businesses to be productive in a minimally-regulated environment. Carney believes in respect for employees, but not at the price of sacrificing a company.

Additionally, she said that the workman’s compensation system is a system that’s broken. "The state pays the highest in premiums and the lowest in benefits," Carney said. The California Chamber has released an economic stimulus package, including suggestions for workman’s comp reform. The latest workman’s comp plans do not hold accountability, said Carney, and they are confusing.

The package also addresses the over utilization of medical services such as chiropractics and seeks to ensure that only serious injury qualifies people for permanent disability. Plan to stop fraud are high on the list. Also, vocational rehabilitation programs are not working, as many applicants are opting for a $10,000 cash out option, instead of completing a program.

"We’re asking the legislature to do no more harm," said Carney. Fifty pending bills have been classified as job killers. A lot of taxes have been disguised as fees, and the chamber wants a 2/3 vote in the legislature to pass these.

In April, 32,891 jobs were lost across the state, accounting for one out of five job losses in the country.

Bills such as SB 912 by Senator Kuel propose that 100 percent of health insurance be funded by employers. AB1528 would have employers pay costs for state health insurance.

Carney emphasized the goal of bringing in business-friendly candidates and elected officials that understand what it is like to run a business and to meet a payroll.

John Anderson, a lawyer and business entrepreneur, owns Topa Equities, Ltd. He said that violating compensation laws these days not only means monetary fines, it also includes jail. Due to high costs, a lot of insurance companies have failed and dropped out of business. Rates have gone up because of the stock market boom in the nineties, where many insurance companies were formed by offering reduced premiums mainly to produce enough cash to play the stock market. Also, a number of lawyers have become proficient at "improving claims" when they are not legitimate.

Suggestions Anderson offered included having the insurance company come in and evaluate a workplace to reduce claims by making sure safety features are up to snuff. "Doing the right thing is not only the right thing, it’s the smart thing. Let your employees know you’re concerned about them," he said.

Fostering a family atmosphere in Anderson’s companies means a quarterly "town meeting"style gathering for the entire company, as well as something called the "10-foot rule"—nobody gets within ten feet of someone without saying good morning or hello. Such goals help to reduce the employer versus employee rift. "Let your people know they are important and that you care about them. Make your place a wonderful place to work." Employee of the month programs and encouraging employees to look out after each other, such as making sure coworkers are wearing safety goggles, is also helpful.

Lyn Perry, owner of Wilshire Home Entertainment, lost his first store to the Los Angeles riots in 1992, and relocated to Thousand Oaks. A director and later chairman of the Westlake Chamber of Commerce, Perry said that small businesses make up 98 percent of businesses in California. Health costs are a stickier issue for small businesses, who must face their people every day, where as big businesses report their insurance issues on a quarterly basis.

For more information on business legislation, see www.calchamber.com.