President Obama announced a plan this week that will increase benefits paid to injured workers though workers' compensation insurance. Obama intends to increase the minimum wage from $7.25 to $9.00 per hour and "index" future increases.
The majority the nation's patchwork of workers' compensation systems are based on a payment scheme linked to wages. The State Average Weekly Wage (SAAW) establishes the foundation upon which temporary disability and permanent disability payments are determined. As wages increase so will benefits.
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President Barack Obama
Delivering The State of The Union
White House Photo: Chuck Kennedy |
A White House spokesperson
announced that, "The President’s plan strengthens the middle class by making America a magnet for jobs, equipping every American with the skills they need to do those jobs, and ensuring hard work leads to a decent living."
"The President believes that no one who works fulltime should have to raise their family in poverty. But right now, a full-time minimum wage worker makes $14,500 a year – which leaves
too many families struggling to make ends meet, with a family of four with a minimum wage worker still living below the poverty line. That’s why the President is calling on Congress to raise the Federal minimum wage for working Americans in stages to $9 in 2015 and index it to inflation thereafter."
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