Business groups in California have formed a consortium aimed at staving off ballot measures they claim would change the state's workers' compensation system to the benefit of plaintiffs' attorneys.
The group, Californians Against the Job Killer Initiative (CAJKI), is co-chaired by Allen Zaremberg, president and chief executive officer of the California Chamber of Commerce; Small Business Action Committee president Joel Fox; and Suzanne Guyan, director of employee benefits for Costco Wholesale Corp.
According to the consortium, the initiative–three versions of which have been filed with the office of the state attorney general–would undo important provisions of California's SB 899, which was enacted in 2004 to bring stability and consistency to the state's workers' comp system.
Two versions of the proposed initiative, which is known as the "Worker Empowerment Act," would allow injured workers to file suit against their employers outside of the workers' comp system, and one version of the initiative would mandate an increase to injured workers' benefits.
Mr. Zaremberg said, "The passage of workers' compensation reform in 2004 was a critical step forward for small businesses in California and helped produce and preserve thousands of jobs in our state.
"The ballot initiatives would eviscerate those reforms, resulting in massive increases in worker's compensation costs, and send our economy into a tailspin. We will rally California's entire business community to preserve the reforms and will wage a vigorous campaign against these job-killer initiatives."
Mr. Fox noted that changes to the workers' comp system would affect not only business but also school districts, municipalities and charitable organizations.
"We expect all these groups to be involved in our campaign," he said. "If any of the three initiatives were to pass, every employer in California would feel the pinch."
CAJKI also announced it has hired the public relations firm of Schubert Flint Public Affairs to manage their campaign against the proposed initiatives. The firm's president, Frank Schubert, will serve as the group's campaign manager.
The proposed initiatives, however, remain in the early stages of the complex process involved in securing a place on the ballot.
The three are currently filed with the state attorney general's office, which provides a summary and title for the initiatives. If that occurs, they would then move to the California secretary of state's office, which will do their own evaluation of the proposal and decide whether the sponsors can seek the required number of signatures for a ballot spot in the November election.
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