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Workers’ Compensation Insurance Killing Businesses In California

NY Times:

Pioneer Super Market in the Echo Park section of Los Angeles had survived price wars, earthquakes and riots. But Pioneer, which opened in the early 1930′s and was drawing about 25,000 shoppers a week last year, could not endure California’s workers’ compensation system. Last month the owner, Leonard Leum, shuttered the store.

Mr. Leum and his son, Mike, who had served as vice president and general manager, blamed California’s crushing workers’ compensation insurance rates, by far the highest in the nation, for the closing. Revenues, they said, had been steady, but the cost of covering 60 unionized employees and eight clerks for workplace injuries had ballooned to $240,000 last year from $60,000 in 2000.

   

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