The reduction in workers' compensation premiums may have a positive effect on hiring in Florida. (Photo: Shutterstock)

When the Castellanos v. Next Door Company case from the Florida Supreme Court came down in April 2016, striking down caps on fees for attorneys who represent injured workers, uncertainty abounded. The ruling was hotly anticipated, with attorneys on both sides of the spectrum, businesses and insurance companies all speculating not only as to what the ruling would ultimately be but also as to what practical effect it would have on businesses, the insurance industry and workers’ compensation claims.

In December 2016, some of that uncertainty was removed, when a 14.5% increase in premiums for workers’ compensation insurance for businesses was effectuated (with 10.1% of this increase due to the Castellanos case alone). This substantial increase perturbed many, as the National Council of Compensation Insurance (NCCI), an organization that files recommended rates on behalf of insurance companies, has subsequently admitted that the 14.5% rate increase was not based on any relevant data or a quantitative analysis, but was rather based on market projections.

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