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Unformatted text preview: ng the benefits afforded to injured employees, Colorado’s new law
granted employers the right to choose the physician who’d determine the severity of any work-related ailment. Enormous power over
workers’ comp claims was handed to company doctors.
Many other states subsequently followed Colorado’s lead and cut back their workers’ comp benefits. The Colorado bill, promoted as
“workers’ comp reform,” was first introduced in the legislature by Tom Norton, the president of the Colorado State Senate and a conservative
Republican. Norton represented Greeley, where his wife, Kay, was the vice president of legal and governmental affairs at ConAgra Red Meat.
In most businesses, a high injury rate would prompt insurance companies to demand changes in the workplace. But ConAgra, IBP, and the
other large meatpacking firms are self-insured. They are under no pressure from independent underwriters and have a strong incentive to
keep workers’ comp payments to a bare minimum. Every penny spent on workers’ comp is one less penny of corporate reve...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08