Why are There Fewer Worker Compensation Claims in States Where Marijuana is Legal?

worker's comp in legal marijuana states

Conversations on the relationship between marijuana and the workplace are always fascinating. The majority of critics like to attack cannabis via this and they couldn't be more wrong. Cannabis has a lot to offer the corporate world, and we see the impact through the fewer compensation claims in states where cannabis is legal.

Before marijuana was legalized, many cannabis users and enthusiasts called for its legalization because they know the kind of positive impact cannabis can have. Luckily the hard work is paying off and more states are legalizing the use of marijuana.

With the increase in legalization, some cannabis skeptics assumed that it would affect workers' productivity and cause injuries. There were concerns about a possible rise in cannabis abuse. Hence some workplaces introduced the idea of cannabis testing. While the concerns about possible abuse are understood and can be managed, the idea that it will impact productivity is entirely false.

Contrary to the popular propaganda being spread by skeptics, states where cannabis is legal have reported fewer injuries to workers. In fact, the workers are more productive. The icing on the cake is the mindblowing fact that there are fewer workers filing for compensation claims in these states! Why is this the case? Read on for answers!

A new study shows fewer worker compensation claims

Do you know that the legalization of marijuana for medicinal or recreational use is associated with an increase in workforce productivity? This legalization process also ensures decreased workplace injuries as workers who took cannabis were more alert and productive.

The study published with the National Bureau of Economic Research revealed that the reductions' leading cause is the improvement in workers' capacity. This increase is due to the additional benefits the workers derive from the pain-management therapy cannabis offers.

It is safe to say that legalizing cannabis has improved workers' health status in specific states, which is an added advantage for such states.

How legalizing marijuana is saving businesses

Most businesses in different states are expected to conduct worker's compensation insurance. When an employee experiences injury at work, the worker's compensation is supposed to cover the cost of his or her medical bills. The payment is also to cushion the impact of lost wages while recuperating.

The worker's compensation aims to ensure the government and private companies take part in the worker's medical costs. Instead of the workers and their families shouldering the entire burden, they get some relief when they file a compensation claim.

There is always a collection of data on the number of workers' compensation claims filed and the payment made for each claim. The William Paterson University, in its analysis from 2010 to 2018 on compensation claims, discovered that older workers are more vulnerable to health conditions of which marijuana will be effective in helping them manage their symptoms.

The research also discovered that cannabis serves as a 'therapeutic substitute" for peculiar issues they may face. What does this mean for compensation claims?

Older workers (being the most vulnerable) are supposed to file more compensation claims because of their supposed failing health. This is not the case in states where these older persons have access to marijuana because it aids with relief for their health challenges hence the reason they don't file for compensation claims.

Access to marijuana increases its medicinal reliance, which allows for better management of specific symptoms workers experience while working. Workers have attributed relief from chronic pain, insomnia, nausea, and improved mental health to marijuana.

The 20% decline in workers compensation receipts

The older people didn't file because marijuana was helpful to their health; and even when they did file compensation claims, the amounts were relatively smaller. The research from the William Paterson University also showed that recreational marijuana reduced workplace injury by 5.4%.

The study further revealed a 20% decline in the worker's compensation benefits with an additional 20.5% decline in annual income received from workers' compensation.

If workers who use marijuana don't have more workplace accidents, it is safe to say that marijuana saves businesses. Cannabis is boosting workers' health, which means we will continue to see a decline in compensation claims filing as the years go by.

In America, workers got $62.9 billion in compensation benefits in 2018, which is a massive reduction by 1.2% from 2014 in states that have legalized marijuana. It is a good thing for workers to be getting all these incredible benefits from marijuana.

How does reduction in compensation claims affects the labor market?

Beyond the decline in workers' compensation and its additional costs, the legalization of cannabis has encouraged a boom in the American economy by adding more jobs in legal states.

The cannabis industry added over 70,000 jobs within the last year, representing a 32% increase. Staggering stats like this makes the cannabis industry one of the country's fastest-growing job creation sectors.

Additionally, there is a significant improvement in the labor market when cannabis is readily available to users. Unemployment rates are bound to reduce with more people getting the medicinal benefits of cannabis and fit enough for the labor market.

A reduction in compensation claims is also a signal of a burgeoning and healthy labor market. Previously, the labor market's value was solely connected to the number of people in a state's workforce; this has changed!

Due to the reality of the impact of cannabis in the work sector, American states are beginning to see the value of their workers' health over numbers. What is the point in having 1,000 workers who file for compensation claims yearly? A 1,000 workforce with only 200 filings for compensation claims is the new norm, and achieving that is an incredible feat.

Bottom line

Cannabis has really come a long way, from being tagged the "bad substance" to being a plant that helps people find relief from their health challenges. Since cannabis provides relief for workers, they do better at work, thus minimizing injuries which concurrently leads to fewer worker compensation claims.