Parallel Employment Group, a Milwaukee-based temporary staffing company has laid off nearly 500 employees in Illinois, blaming the high cost of the state’s workers’ compensation system, according to a Chicago Tribune article.
Kirk La Du, executive vice president of operations, said the company, which also operates in Wisconsin and New York, incurred 87 percent of its total workers’ compensation costs in Illinois, according to the article. The state accounts for about 35 percent of its revenues, he said.
Illinois is one of the most expensive states for workers’ compensation insurance and medical costs, according to statistics provided in the 2010 annual report of the Illinois Workers’ Compensation Commission. The state’s medical costs per claim, according to the most recent available data, are 29 percent above the median among the 50 states, but the injury rate in Illinois is 17 percent below the median.
For more information on the layoffs and Illinois’ workers’ compensation insurance costs, read the entire article by clicking here.