Governor Sanford Signs Business-positive Workers' Compensation Executive Order

Governor Mark Sanford signed an Executive Order requiring the Workers’ Compensation Commission to use widely accepted and objective American Medical Association (AMA) guidelines or other objective standards in determining levels of disability based on specific injuries. The South Carolina Chamber of Commerce has strongly encouraged the use of AMA guidelines for more than two years, and applauds the Governor’s action.

South Carolina now joins the 32 other states that follow AMA guidelines or other objective standards, a decision that the South Carolina Chamber has encouraged in order to bring predictability and stability to the workers’ compensation system. The National Council on Compensation Insurance (NCCI), a U.S. insurance rating and data collection bureau specializing in workers' compensation, predicts that in South Carolina businesses should save about $72 million, which is about 9 percent of the $800 million in workers’ compensation expenses. This will allow employers to do things like expand, create new jobs, and enhance employee benefits like health insurance coverage.

“Like most South Carolina employers, Beneteau has struggled with rising workers’ compensation rates over the years. We applaud the Governor and the Chamber for this significant step towards a fair and equitable compensation system. Beneteau USA has been building sailboats in Marion County for over two decades, employing more than 300 citizens, and today’s action, coupled with the General Assembly-passed workers’ comp reform legislation, will help ensure that we are able to continue to thrive in South Carolina,” said Yannick Madiot, vice president of finance, Beneteau USA.

Hunter Howard, president and chief executive officer of the South Carolina Chamber of Commerce, said of today’s Executive Order, “South Carolina’s business community would like to thank Governor Sanford for following through with efforts to improve the competitive business climate in South Carolina. He has supported the reform of our outdated workers’ compensation system from the beginning, and today he takes that a major step further. Today’s action, along with the 2007-passed reform legislation, creates a predictable and stable system that is fair to employees and employers.”

The South Carolina Chamber has worked diligently over the years to achieve true comprehensive workers’ compensation reform, and provided solutions to the workers’ compensation crisis from the very beginning. And in the end, it was the South Carolina Chamber members’ calls, visits, and emails to legislators that ensured the legislation’s passage this year.

In June, Sanford signed a comprehensive workers’ compensation reform bill that was passed by the General Assembly. The reform legislation represented an extremely positive step forward for the business climate in South Carolina and included orderly dissolution of the Second Injury Fund. Strong language for repetitive trauma was included, as was the correction of all court cases that have significantly weakened workers' compensation law in recent years. The legislation also provided for a rebuttal presumption for the 50 percent back rule and fraud provisions for both employers and employees. A new appellate procedure was established, where appeals from the Commission now will be sent to the Court of Appeals instead of the Circuit Courts. The compromise legislation also released trucking companies from liability in accidents involving independent contractors.