State of the States July 18, 2025

National – Liberty Mutual released a new workplace safety report, revealing that overexertion is the leading cause of workers’ compensation costs in 2022, totaling $13.7 billion. Falls on the same level followed at $10.5 billion, while injuries from being struck by objects or falling to a lower level added another $11.6 billion. Combined, these incidents accounted for more than half of the $58.8 billion in total workers’ compensation costs. The report also highlights that 56% of injuries affect the back, shoulder, or knee, highlighting the persistent burden of musculoskeletal injuries.  

Two Republican Representatives, Tim Walberg (MI) and Ryan Mackenzie (PA) sent a letter to the U.S. Government Accountability Office (GAO) requesting they investigate the Federal Employees' Compensation Act (FECA), citing concerns over waste, fraud, and excessive benefits. The lawmakers highlighted 322 fraud convictions and $1.7 billion in recoveries over the past decade, and are requesting the GAO to explore reforms such as a three-day waiting period for benefits, expanding claim approvals to nurse practitioners and physician assistants, and comparing FECA to state workers’ compensation systems. 

The U.S. Department of Labor (DOL) announced new rules aimed at easing penalties for small employers who address workplace safety violations. Under the new policy, employers who promptly correct violations may receive a 15% penalty reduction. Additionally, the existing 70% penalty reduction, previously limited to businesses with 10 or fewer employees, will now apply to those with up to 25 workers. The DOL also introduced a new 20% reduction for employers who, during their most recent inspection, were cited for violations but had no serious, willful, or failure-to-abate violations in any inspection over the past five years. 

Workers’ Compensation Research Institute (WCRI) CEO Ramona Tanabe participated in a panel on workplace mental health at the Forces at Work Symposium, hosted by the Travelers Institute at the New York Stock Exchange, to discuss WCRI’s research on comorbidities and their impact on recovery and return-to-work outcomes. The event attracted more than 6,000 livestream viewers. Check out the livestream here.  

Connecticut – HB 7179 was signed into law late last week. The legislation requires pharmaceutical manufacturers and marketing firms to register annually and submit detailed reports on their marketing activities. It also authorizes the distribution of opioid antagonists through secure boxes and vending machines, under agreements with trained healthcare providers and certified pharmacists.

Ohio – The Ohio Bureau of Workers’ Compensation introduced a new initiative aimed at supporting employees in addressing substance use issues in the workplace. Through the Substance Use Prevention and Recovery Program, participating employers can earn premium rebates by meeting specific program requirements. Additionally, the program offers reimbursements to employers for creating and implementing drug-free workplace policies.

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