Workers’ Comp Opt-Out Programs A “Pathway To Poverty”: US Labor Secretary

A member of the federal government has spoken out against what he calls the “disturbing trend” of allowing employers to opt out of state-regulated workers’ compensation. “What opt-out programs really are all about is enabling employers to reduce benefits,” US Department of Labor Secretary Thomas Perez said during a recent interview with National Public Radio. “[Opt-out programs] create really a pathway to poverty for people who get injured on the job.” Perez vowed that his agency will use its “bully pulpit” to stop the trends, emphasizing that it leaves workers without medical care and wage replacement payments if they are injured on the job.