1941: Workmen's Compensation

Over a period of thirty years every state in the United States with the exception of Mississippi has adopted some type of accident compensation legislation. To be sure, the benefits are still inadequate in many states but there seems to be a trend toward increasing liberality in this respect. There is no doubt from our experience with the Federal Social Security Act that a Federalized workmen's compensation act would facilitate a maintenance of standards and encourage their adoption at a much more rapid rate than has been the case.

During 1941 a number of changes in the workmen's compensation laws of the various states has occurred. Oklahoma is one of the states in which fatal accidents are not compensated. In May 1941 both houses of the Oklahoma legislature adopted a resolution directing the Secretary of State to refer to the people a proposed constitutional amendment which would make possible the payment of compensation in those cases where death results from work injuries. Although no further action has yet been taken this is a step forward.

Rhode Island has passed legislation placing the operation of the workmen's compensation law in the hands of a commission. Delaware swinging from elective to compulsory compensation liberalized its benefits and included in its list of occupational diseases dermatitis, silicosis, poison oak and poison ivy. Washington also extended its coverage of occupational diseases. Colorado and Oregon placed upon industry the cost of financing safety work throughout the state. Florida wiped out 'horticultural' exemptions as well as exemption of workers in sawmills employing ten or less. It, too, liberalized its benefits and accelerated the claims administration. Illinois raised by 10 per cent the maximum amount of benefit payable in fatal accidents and occupational diseases. Maryland provided a fund from fines collected from those employers who were not insured, to pay the awards levied against such employers because of accidents. It also has transferred the administration of the State Compensation fund to five Commissioners of State Accidents paid on a per diem basis. It raised the maximum weekly benefits to $21 and made provision for a survey of the compensation administration. Washington increased its benefits and changed from a schedule to a general coverage for occupational diseases. Utah transferred its state fund from the Industrial Commission to the Finance Department and established a schedule of occupational disease compensation. Montana extended its welfare relief to silicotics while Pennsylvania made provision for actual payment of the state's share of compensation to silicotics.

Massachusetts required no-insurance employers to post a notice that their employees are not protected by workmen's compensation insurance. North Carolina and Ohio facilitated employee suits against no-insurance employers to prevent removal of property from the state. In 1940, 15,969 departmental summonses were served in New York State upon employers who were non-insurers. Of these, 2,861 were prosecuted. Workers employed by non-insurers suffered 1,345 accident injuries.

With the marked increase in employment during 1941 because of the defense program there has been a tremendous increase in industrial accidents. It has been estimated that a 30 per cent increase in employment resulted in a 70 per cent increase in accidents due to 'speed up' of defense production and to the fact that many new workers are insufficiently trained and informed. Furthermore according to the estimates of the Industrial Hygiene Foundation, absence from work because of illness is expected to average eight days per worker for the year. This would result in a loss of 1,000,000,000 man hours of work or at least the loss of 500,000 workers' full time. Cognizant of this trend Colorado placed a tax upon workmen's compensation insurance premiums to finance the safety work carried on by the Industrial Commission. Oregon also added a 2 per cent premium tax for safety work in addition to a 10 per cent allowance to the state compensation fund for the expenses of administration.

The District of Columbia changed the minimum wage administration to include industrial health and safety inspection under the new Minimum Wage and Industrial Safety Board. Colorado, Illinois, Montana, Ohio, Pennsylvania, West Virginia and Wyoming strengthened their mine safety laws. Boiler inspection administration was provided for this year in Iowa and Utah. Illinois adopted rock dusting to prevent the spread of coal dust explosions.

A Federal law was passed which provides for Federal coal mine inspection with the right of entry and authority to publish findings on safety and health.

There seem to be two trends in the development of workmen's compensation administration, one is legalistic, the other emphasizes social goals. The legalistic tends to measure compensation through schedules — specific compensation for the loss of a toe, finger, arm or leg. The function of the Board or Commission method of administration is to compensate according to need and to effect a program of retraining the worker through either a rehabilitation clinic or a vocational training program. Ontario has opened this year the first curative workshop in connection with the administration of the workmen's compensation act. Training is coordinated with a program that gives the injured worker an incentive to get well and return to work. The permanently injured worker draws compensation for life based on the extent of physical impairment, but he is retrained so that he may function in some other occupational group. In June 1941 the Canadian Government Employees' Compensation Act was made applicable to all persons being trained under the defense program whether or not they receive a wage or salary. Their compensation is based on $12.50 a week, the assumption being that this is what they were earning at the date of accident.

In the United States, the Federal Workmen's Compensation Law extended its coverage to include all injuries and deaths of workers engaged in all but excepted employment at military, air, or naval bases, acquired from foreign governments after Jan. 1, 1940. The United States Bureau of Mines indicated that in 1940 1,690 men were killed and 78,550 were injured in mining industries in this country. See also ACCIDENT PREVENTION.