Top 12 challenges for workers comp in 2025 Part 2 (6 - 12)

6. Technology

   At the workplace, the integration of new technologies like robotics, automation, wearables, and AI may bring new safety concerns, potential injury risks, training challenges, and regulatory compliance issues regarding privacy and discrimination. EEOC has a heightened focus on technological developments and employers need to remember it is not enough that the devices have a legitimate purpose on the jobsite, even if it is safety related. They need to know how devices and programs work, what information is gathered, how the information is used and stored, and how it could be misused. Employers should work to balance technological advancement with ethical considerations and employee acceptance and constantly monitor regulatory updates.

   Technology is also reshaping how insurers interact with employers. This transformation brings with it new challenges for balancing roles. Vast amounts of data can be analyzed, which will lead to more accurate risk profiles. Employers should understand the tools used by insurers,have input to tailor the technology to help the business proactively manage risks, and advocate for transparency. Expect to see more automated underwriting and claims processing, online portals, and self-service platforms.
   
   

7. COVID

   In 2024, Long COVID continued to significantly impact employers. A Yale study estimated that as many as 2 million people may be out of work because of post-COVID conditions and the average age is 40. A National Safety Council survey suggested a potential link between Long COVID and workplace injuries.

   Long COVID has been recognized as a disability under the ADA when it substantially limits major life activities. Employers have seen a noticeable increase in accommodation requests and modified work assignments, flexible work arrangements, and remote work are common accommodations.

   Whether Long COVID is covered by work comp is complex and depends on whether the illness is determined to be work-related as well as state presumptive laws. In many cases, employees must prove that the COVID infection and subsequent Long COVID symptoms are directly attributable to the workplace. This has led to several legal challenges, which are likely to continue in 2025.

   In addition to Long COVID, courts heard many cases related to the compensability for COVID under work comp. Decisions have varied widely based on state and presumptive laws, occupation, definition of occupational disease, and unique circumstances around the claim. In many cases, workers have failed to establish that the contraction took place at work or that the risk of contracting the disease is increased by the nature of the employment. The Nebraska Supreme Court issued an interesting ruling in Thiele v. Select Medical Corp. finding determination of "a disease of ordinary life" should be based on conditions at the time of the infection, not the time of the hearing.
   
   

8. Hybrid work

   While the tug-of-war between in-office and remote work is expected to continue in 2025, employers allowing remote work must assess the effectiveness of their policies in preventing incidents and determining if an injury is work-related when one occurs. Ergonomic and mental health claims have been top concerns. .
   
   

9. Workers' Compensation Medicare Set-Aside (WCMSA)

   In 2025, a key change is Workers' Compensation Medicare Set-Aside (WCMSA) that all workers' compensation settlements involving a Medicare beneficiary will require reporting of the Workers' Compensation Medicare Set-Aside (WCMSA) amount to Medicare, starting April 4, 2025. Failure to comply with CMS' rules may result in civil money penalties.
   
   

10. Workplace violence

    In 2024, California's SB 553 became the first formal regulation addressing workplace violence in general industry. New York also enacted a Retail Worker Safety Act that goes into effect on March 4, 2025. The laws could set a precedent for other states to follow. While workplace violence is a leading cause of injury for healthcare and K-12 education employees, it can happen in any business. Employers need to stay abreast of changing laws and continually evaluate and update their policies.
    
    

11. Mega claims

    While a very small percentage (0.1 percent) of claims are mega claims (over $2M), there has been a steady increase in frequency over the past decade. The construction industry has the highest frequency of mega claims and head, brain, neck and spine injuries dominate claims over $10 million. The claims can be catastrophic injuries at the onset or creep up due to complications or preexisting conditions. Predictive modeling can help with the early detection of potential issues and involving the right resources from the beginning can help control costs. The construction industry should focus on workplace safety technology and automation to help mitigate risks.
    
    

12. Gig economy

    The ongoing legal battles over benefits for gig workers, including work comp, will continue in 2025. With gig workers frequently classified as independent contractors rather than traditional employees, employers are increasingly required to adjust their risk management strategies. In the ever-evolving landscape of the gig economy, classifying workers as either employees or independent contractors has profound implications for employers. Pay close attention to evolving state and local laws.