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Monday, February 25, 2013

Professional athletes cash in on California’s workers comp.

SACRAMENTO—California’s workers’ compensation system has awarded millions of dollars in benefits for job-related injuries to thousands of professional athletes, including many who played for out-of-state teams, according to a report.

The Chronicles of Reddick Posted: February 25, 2013 at 02:36 PM | 21 comment(s) Login to Bookmark
  Tags: los angeles, oakland, san diego, san francisco

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   1. RJ in TO Posted: February 25, 2013 at 03:55 PM (#4375783)
Number of baseball players mentioned in the article: 0
Number of baseball teams mentioned in the article: 0
Number of times baseball is mentioned in the article: 0
   2. Crispix Attacks 2: Swag Airlines Posted: February 25, 2013 at 04:01 PM (#4375788)
The OTP fans are disappointed by the February thread having only 287 posts in an entire month. Getting a head start on March.
   3. RoyalsRetro (AG#1F) Posted: February 25, 2013 at 04:13 PM (#4375793)
California taxpayers are not responsible for these payments; workers' compensation is an employer-funded program.


So what's the problem exactly?
   4. The Chronicles of Reddick Posted: February 25, 2013 at 04:58 PM (#4375839)
California taxpayers are not responsible for these payments; workers' compensation is an employer-funded program.

So what's the problem exactly?



Oh I don't know, maybe if the law gets amended in any way that this will affect the any athletes who play in the state of California as well as those who made claims who were based in other states. It seems wrong that players who are not playing for Californian teams are allowed to make workers comp claims.
   5. RoyalsRetro (AG#1F) Posted: February 25, 2013 at 05:05 PM (#4375844)
It also seems wrong that teams that don't play in California get to benefit from California-taxpayer funded stadiums. I'm not going to have much sympathy for billion dollars sports leagues that have to pay athletes compensation for getting hurt.
   6. Bob Tufts Posted: February 25, 2013 at 05:09 PM (#4375846)
Try filing taxes as an athlete - a different form for virtually every state in which you play (some cities also).
   7. AROM Posted: February 25, 2013 at 05:35 PM (#4375862)
I can understand the taxes would be a pain, but then again that's what tax accountants are for. I gave up trying to do my own when my wife started a home day care.

If I could add 20 MPH to my fastball and shave 20 years off my birth certificate, I'd gladly give the tax filing a try.
   8. The Chronicles of Reddick Posted: February 25, 2013 at 05:48 PM (#4375874)
Try filing taxes as an athlete - a different form for virtually every state in which you play (some cities also).


That seems stupid as in theory a sales person could go to a trade show in another state and have to pay taxes though I wonder how much that actually happens.
   9. Tulo's Fishy Mullet (mrams) Posted: February 25, 2013 at 05:58 PM (#4375888)
Try filing taxes as a citizen


Fixed.

This is one of the bigger government crimes against its own people, the amount of time, energy, effort and cost associated with attempting to comply with the IRS tax code. It should not be much more complicated than it is for the 1099-EZ filers, but it is, by several times. (I know how it got to this point and there's blame to go around to everybody, doesn't make it unavoidable.)
   10. Bob Tufts Posted: February 25, 2013 at 06:01 PM (#4375892)
I seem to remember that Derek jeter lost a case with NY State when he was claiming residence in Florida while living at Trump Tower and paid a settlement.

Death, reduced range and taxes will get you every time!
   11. KT's Pot Arb Posted: February 25, 2013 at 06:03 PM (#4375893)
So what's the problem exactly?


Maybe because "employer funding" is not optional, it's a mandatory tax. An expensive one that makes it more expensive to hire workers in the great state of California.

Paying out large settlements to out of state millionaires who have their own fabulous pension plan means higher taxes for all CA employers, and fewer jobs for CA employees.
   12. Tripon Posted: February 25, 2013 at 06:18 PM (#4375907)

Paying out large settlements to out of state millionaires who have their own fabulous pension plan means higher taxes for all CA employers, and fewer jobs for CA employees.


Except, the victims in this case are out of state companies (rival sports teams) that have to do business in California. The Broncos can't not schedule against the Chargers and Raiders each year. The argument shouldn't be that California is losing business over this dumb law. It should be more like "This is a dumb law, change it."
   13. villageidiom Posted: February 25, 2013 at 07:02 PM (#4375937)
That seems stupid as in theory a sales person could go to a trade show in another state and have to pay taxes though I wonder how much that actually happens.
Each state has a minimum threshold of pay for work in-state to require filing a tax return. I haven't exceeded it yet - I rarely travel for business - but I do have to track my days spent working out of state nonetheless, and my employer reports my income to each state.
   14. Never Give an Inge (Dave) Posted: February 25, 2013 at 07:14 PM (#4375945)

Except, the victims in this case are out of state companies (rival sports teams) that have to do business in California. The Broncos can't not schedule against the Chargers and Raiders each year. The argument shouldn't be that California is losing business over this dumb law. It should be more like "This is a dumb law, change it."

I think the point is that the athletes' claims get paid out of a general worker's comp pool, not an NFL-specific or Denver Broncos-specific pool, so in fact the high claims result in higher premiums to *all* California businesses. But this is outside of my area of expertise.
   15. greenback Posted: February 25, 2013 at 07:27 PM (#4375956)
I think the point is that the athletes' claims get paid out of a general worker's comp pool, not an NFL-specific or Denver Broncos-specific pool, so in fact the high claims result in higher premiums to *all* California businesses.

That's not clear from the article, and while I readily admit I don't know how California's insurance arrangement works, that's certainly not the way worker's comp functions in all states.
   16. Slivers of Maranville (SdeB) Posted: February 25, 2013 at 07:37 PM (#4375961)

This is one of the bigger government crimes against its own people, the amount of time, energy, effort and cost associated with attempting to comply with the IRS tax code.


If that's one of the bigger government crimes against its own people, we must be doing pretty well.
   17. villageidiom Posted: February 25, 2013 at 08:08 PM (#4375979)
I think the point is that the athletes' claims get paid out of a general worker's comp pool, not an NFL-specific or Denver Broncos-specific pool, so in fact the high claims result in higher premiums to *all* California businesses. But this is outside of my area of expertise.
1. IIRC the NFL handles workers compensation (WC) on behalf of the teams. If so, then to the extent that NFL does business in CA they are already paying into the CA WC system. That there is money flowing out of the system to NFL players is supposed to happen. For that matter, that there is money flowing out of the CA WC system to athletes on teams in other states is still supposed to happen.

2. The issue here is different. WC generally covers for injuries sustained the way we typically think about them. Someone's doing their job; they break their leg; the system pays out. It is also recognized that long-term effects can cause injury (e.g. asbestosis, carpal tunnel, etc.). CA has set up their WC system to pay out for a portion of cumulative effects sustained in state, and while I don't know the details I would guess CA is more generous than other states in that regard. NFL players and retirees have, unsurprisingly, a lot of injuries that are cumulative effects. How much was sustained in CA vs. elsewhere is essentially unprovable.

3. It's not clear that the CA WC system was designed to collect enough money to support cumulative injury claims from out of state athletes. (EDIT: Just to clarify, it's not "the CA WC system" that would pay, it's the NFL's WC insurance providers. Premiums would go up for those insurers' customers, not all CA businesses. The reason we say "the CA WC system" is that terms of insurance coverage are mandated by state law for WC. It's not CA that is paying; the insurers are paying based on the terms CA sets. Frequently a mandated coverage provision produces unintended consequences.) They're trying to change the law, while another approach is to simply charge the NFL more money for WC insurance. I work for an insurance company; while I'm sure my employer has a firm preference, I could live with either solution. If CA didn't intend for WC benefits to be so generous to out-of-state workers on cumulative injury claims, then the law is broken. But if the NFL has higher than expected costs because of this, and their insurer isn't covering those costs, they need to charge more.
   18. RMc and His Roster of Rubbish Posted: February 26, 2013 at 05:49 AM (#4376128)
So what's the problem exactly?

Envy. "California’s workers’ compensation system has awarded millions of dollars in benefits for job-related injuries to thousands of professional athletes".
   19. Rafael Bellylard: Built like a Fielder Posted: February 26, 2013 at 06:20 AM (#4376131)
The problem with California's Worker's Comp program isn't the fact it's mandatory, it's what the businesses get charged by the insurance companies to have it. You can't say it borders on gouging; it blew past the border decades ago.

WC costs are based on basically total payroll and possibility of liability. You pay a fee based on percentage of you total payroll and the percentage is determined by the likelihood of claims being filed.

I worked for two companies doing the exact same business (non-emergency medical transportation), one in Chico, California and the other in Lakeland, Florida. In Florida, the percentage of payroll charged was about 12%. In California, the percentage was 100%.
   20. jdennis Posted: February 26, 2013 at 01:37 PM (#4376345)
we need to remember that lower-paid minor leaguers in all sports make up most of the demographic of professional athletes.
   21. tfbg9 Posted: February 26, 2013 at 02:37 PM (#4376401)
we need to remember that lower-paid minor leaguers in all sports make up most of the demographic of professional athletes.


Which is one of the reasons I have a hard time taking the Players Union too seriously,as a "union."

Liken it to some millionaire neurosurgeon's guild, then you regain my attention, sice you're being honest with words at that point. Call it
The Mostly Millionaire Ballplayers Guild.

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