California and New Jersey have the nation’s most expensive workers’ compensation rates, according to a new study reported in the Insurance Journal. North Dakota has the lowest rates in the nation.
While California took first place, New Jersey was the runner up with the next highest rates in the nation. According to the study, in New Jersey the $2.92 per $100 in payroll was 158 percent above the U.S. median. The report shows the state moved up in ranking from No. 3 in 2014, when rates averaged $2.82.
Workers’ comp officials in New Jersey weren’t immediately available for comment.
Following New Jersey in the rankings for highest workers’ comp rates were New York ($2.83), Connecticut ($2.74), Alaska ($2.74) and Oklahoma ($2.23).
The authors of the report compared each state’s rates to the national median rate of $1.84 per $100 of payroll, which is a drop of less than 1 percent from the $1.85 median in the last report. The report is based on methods that put each state’s workers’ comp rates on a comparable basis by using a constant set of risk classifications.
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