The Workers' Compensation situation in this country is unbelievable. Why, well because of lawsuits and attorneys mostly. The costs of workmen's compensation on the business community is part of the reason for the slow return of high paying blue collar jobs in this country and the demise of the manufacturing sector. The system covers some 122 million workers nationally, but it is regulated state by state, not nationally and there is nothing close to being a Federal Oversight on this, not that I or anyone else cares to add another layer of bureaucracy to an already broken system.
You can imagine the burden of the franchising community to provide jobs and the incredible problems faced by franchisees. The average cost on a national level has risen 50% in the last 3 years. This means that the poor employer is stuck, do they hire fewer people and assign more work, go out of business or cheat. Actually none of these options seem to be worthy of assisting in attaining the elusive ROI or profit that all business owners and franchisees seek. The prices in California have risen so fast that the costs of workmen's compensation have doubled in the past three years. That is 200%. We recently talked to one company which builds Car Washes and Quick Service Restaurants Franchise Tennant Improvements and C-Stores, who indicated to us his workmen's compensation costs in Los Angeles were running 110% of payroll? WOW. This is serious, it is due to run away lawsuits, we need tort reform.
This is one reason that Maurice "Hank"Greenberg of AIG Insurance Groups said that Lawyers are Terrorists, this is why Elliot Spitzer targeted him personally. Well, I could not agree more personally and have never heard not one debatable comment from any one in the legal profession, which sues employers. California is working on their problems and is making some progress as you might have seen on TV or in the newspaper: It's About time reform for workers compensation:
http://www.bizjournals.com/sanfrancisco/stories/2004/04/12/daily50.html?f=et78 p>
We understand the issues with labor in many industries and why we need safety and assistance for those hurt on the job:
http://www.carwashguys.com/080902_3.shtml
But I must tell you that it is a real hardship on businesses to deal with this. Good to see Arnold is working on it. Glad to see we are working to fix the problem. But essentially this is merely a start of the fixing of the over all problem in America. The premiums started a huge upward hike and accelerated the already fast pace in increased costs after 9-11 when the Insurance Industry took unexpected hits of 40 Billion dollars. The other factor increasing costs is the medical industry getting hammered by lawsuits for mal practice. The improvements in safety and added restrictions have decreased work related injuries. A reduction in worker eligibility for benefits has led to a decrease of 36% in compensation claims in the last 10 years. Unfortunately the costs per claim have doubled to an average of $15,000 in the nation and in California $35K. In the 1900s when the compensation ideas were started they were to reduce litigation and disputes. Of course once you make one law, you have just given yourself job security. Due to the fraud of lawyers, chiropractors, criminals and doctors working together billions in fraud has been stolen from businesses over the years.
Joe, goes to a lawyer who has a friend who is a Chiropractor. Joe says he hurt his arm to the lawyer and Chiropractor or doctor expert confirms this, they file suit and document the extent of injury and how many days Joe should be out of work and charge their hefty fees to the deal. All this is fraudulent, as Joe was seen skiing in Aspen, Water Skiing in Lake Mead, Sky Diving in Phoenix, Sport fishing in Baja, Para sailing in Key West, mountain climbing near Jasper, Canada and riding his dirt bike in TX. And you think you have a chance owning a Burger Franchise in CA with 41 employees? NOT. We are glad to see things are changing, but it cannot possibly happen fast enough. Want some books on this subject?
http://www.amazon.com/exec/obidos/tg/detail/-/0815328273/103-4667935-9891039?v=glance
Maybe CA is getting their act together, maybe a franchise in CA might be feasible with out getting your pants sued off. We are happy to see that Arnold the 'Governator' is terminating bad laws and policy in CA, the question is; is anyone else listening and are they going to do anything about it?
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
What is a Family Business? A family business is basically... Read More
Q: I will be retiring this year at age 60... Read More
Q: I really want to start my own business, but... Read More
We very much like what we see in Lubbock, TX... Read More
What types of companies do you want to align yourself... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
One of the best ways to make money in the... Read More
Someone new to business ownership recently told me, "Before I... Read More
One of the great challenges for independent professionals and small... Read More
Too often in business we get trapped into reviewing our... Read More
What does it take to grow a business and run... Read More
Those who are in the pressure washer business should not... Read More
Boston itself covers 50 square miles of concrete and traffic,... Read More
Concrete cleaning can be a lucrative business to start. Here... Read More
E-mail and Internet use are integral parts of the typical... Read More
Aside from the fear of losing a spreadsheet or research... Read More
It's Monday morning and Connie the Consultant sits in her... Read More
What makes a business relationship?What really makes a business relationship?... Read More
Buyers want both online and local information about where to... Read More
There is significant competition in auto detailing and car washing.... Read More
How do we keep track of our business deals?If you... Read More
Contrary to popular belief, small businesses can survive a crazy... Read More
When someone owes your small business money, you certainly feel... Read More
SBIR vs. STTR: If you are participating in the SBIR... Read More
"If at first you don't succeed, then skydiving definitely isn't... Read More
Many mobile car wash operators would like to add de-ionized... Read More
By outsourcing to skilled professionals you'll be able to grow... Read More
Your business account comes with an ATM, Debit card. Pick... Read More
Starting a business? For many people, the bravery to venture... Read More
$elling $elling $ellingWhat makes a great sales person? Well, the... Read More
The efficiency of debt collection is the difference between a... Read More
Search Engines account for almost 90% of all web traffic!In... Read More
How do you make sure you have the business solutions... Read More
Who is responsible for maintaining the business relationship?Nurturing a business... Read More
Quality control in franchising companies is paramount and all franchising... Read More
Approximately 200,000 new businesses are started each year. More people... Read More
Why does consistency in the message have an effect on... Read More
What is a Virtual Assistant?? A Virtual Assistant is that... Read More
How do marine type businesses start? Have you ever thought... Read More
Multimedia is everywhere on the Internet, whether in the form... Read More
Your on-line success is based on your efforts and yours... Read More
That's right are you making enough mistakes in your... Read More
Deciding to start your own franchise is just one of... Read More
Whether you operate a chain of restaurants, a mom-and-pop convenience... Read More
Many companies wish to expand and a few wish to... Read More
Contrary to popular belief, small businesses can survive a crazy... Read More
Most small businesses simply go about their daily business and... Read More
Obtaining a business credit card enables the small business owner... Read More
As a solo entrepreneur or small business owner, one of... Read More
Sometimes the simple businesses are the ones, which make good... Read More
So you want to get into the auto detailing business... Read More
1. There Are No "gimmes" ? They count two-foot putts... Read More
There are several well-known truck washes in the Great State... Read More
Managing cash flow is every small business owner's most important... Read More
It's obvious when a small business has accepted the fact... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
In a perfect world, starting a small business would be... Read More
Just as you are about to say "good-bye" to your... Read More
My clients and many of my readers are small and... Read More
Many years ago, I had warned the carwash industry of... Read More
Are you tired yet of all the books out there... Read More
We love Wichita because it has great all round weather... Read More
We have all seen the mobile washing units cruising our... Read More
I agree that knowledge should be free, but the next... Read More
Fuel prices these days are quite high and they take... Read More
Have you been searching for the perfect home-based business? I... Read More
Small Business |