Workers’ Compensation rates in the Sunshine State are declining again after many years of increases, says the Florida Office of Insurance Regulation (FOIR). The National Council on Compensation Insurance (NCCI) had initially proposed a 1.9 percent decrease but instead the state’s rates are set to decline by 5.1 percent.

The state reformed their workers’ comp system in 2003 when rates were 58 percent higher than they are now. For the next seven years businesses enjoyed falling compensation rates. Starting in 2011 they increased every year, but declined by 5 percent in 2015.

Thumbtack performed a survey of “small-business sentiment” and Florida ranked fifth in the country, and overall small business owners in the state said they were somewhat positive about the future.

There are cases in the court system right now that could change the workers’ comp rates, the FOIR said.

Westphal v. City of St. Petersburg, the Castellanos v. Next Door Company case and the Padgett case are still pending before the state Supreme Court.

The Padgett case plaintiffs have asked the state’s Supreme Court to review their case, and if that argument is held up then the state’s workers’ compensation system could be deemed unconstitutional. A judge who ruled on this case earlier focused on the exclusive remedy part of workers’ compensation and determined that the system had been cut so much that it was no longer fair to workers. Judge Cueto said that it was inadequate and therefore unconstitutional.

Also on the docket is the Westphal v. City of St. Petersburg case, which debated the constitutionality of a part of section 440.15 of the Florida Statues. That provision said that a person who had reached the limit of 104 weeks of temporary benefits and was still not at maximum medical improvement could still be denied permanent disability benefits. Workers could end up in a “gap” area where they could not work and doctors were still deciding whether or not they might end up being permanently disabled from their injury, but they could not collect either temporary or permanent benefits. The worker argued that was unconstitutional.

Another case, Castellanos v. Next Door Company, involves how attorney fees are computed.

I’m sure these cases will be watched, not just by Floridians, but by workers’ comp professionals all over the country. We will see whether or not their outcomes have any impact on the new, lower rates.