Rand Study Finds 26% Cut in Wage Replacement after Reforms

By Greg Jones, reporterSweeping reform measures passed in 2004 appear to have cut wage-replacement rates by 26%, even though return-to-work rates have improved, according to a study published this month by the Rand Corp.The study, titled "Workers' Compensation Reform and Return to Work -- The California Experience," looked at the effects reform had on adequacy of permanent disability benefits awarded to workers and the affordability of the system to businesses. Jason Schmelzer, a lobbyist with the employers' group California Workers' Compensation Coalition, took exception with the ...