Why are there fewer employee claims for damages in states where marijuana is legal?
Conversations about the relationship between marijuana and the workplace are always fascinating. The majority of the critics are happy to attack cannabis and they couldn’t be more wrong. Cannabis has a lot to offer the corporate world, and we are seeing the impact in the lower claims for damages in states where cannabis is legal.
Before marijuana was legalized, many cannabis users and enthusiasts called for it to be legalized because they know the positive effects cannabis can have. Fortunately, the hard work is paying off, and more and more states are legalizing the use of marijuana.
With the rise in legalization, some cannabis skeptics believed that it would affect worker productivity and cause injuries. There were concerns about a possible increase in cannabis abuse. Hence, some workplaces introduced the idea of cannabis testing. While concerns about possible abuse can be understood and managed, the idea that it has an impact on productivity is completely wrong.
Contrary to popular propaganda made by skeptics, states where cannabis is legal have reported fewer worker injuries. Indeed, the workers are more productive. The icing on the cake is the overwhelming fact that fewer workers are making claims for damages in these states! Why is that? Read on for answers!
A new study shows fewer employee compensation claims
Did you know that legalizing marijuana for medical or recreational purposes has been linked to increasing workforce productivity? This legalization process also results in fewer injuries in the workplace, as workers who used cannabis were more alert and productive.
The study, published with the National Bureau of Economic Research, found that the main cause of the reduction is improvement in worker capacity. This increase is due to the additional benefits workers get from cannabis pain management.
It is safe to say that the legalization of cannabis has improved the health of workers in certain states, which is an added benefit for those states.
How marijuana legalization saves businesses
Most companies in different states are expected to purchase workers’ compensation insurance. If an employee is injured at work, the employee’s compensation is intended to cover the cost of their medical bills. The payment is also used to cushion the effects of lost wages on recovery.
The worker’s compensation is intended to ensure that the government and private companies share in the worker’s medical expenses. Instead of the workers and their families bearing the entire burden, they get some relief when filing a claim for compensation.
There is always a collection of data on the number of employee compensation claims filed and the payment made for each claim. William Paterson University’s 2010-2018 analysis of compensation claims found older workers to be more susceptible to health conditions for which marijuana is effective in helping them manage their symptoms.
Research also discovered that cannabis serves as a “therapeutic substitute” for particular problems they may face. What does this mean for claims for damages?
Older workers (who are most at risk) should make more claims for damages because of their alleged health impairment. This is not the case in states where these elderly people have access to marijuana, as it will help alleviate their health problems, which is why they will not be seeking compensation.
Access to marijuana increases medical addiction, which allows for better management of specific symptoms that workers experience. Workers have attributed relief from chronic pain, insomnia, nausea, and improved mental health to marijuana.
The 20% drop in employee compensation income
The elderly did not submit because marijuana was beneficial to their health; and even when they did make claims for damages, the amounts were relatively small. Research from William Paterson University also showed that recreational marijuana reduced workplace injury by 5.4%.
The study also found a 20% decrease in employee compensation benefits and an additional 20.5% decrease in annual employee compensation income.
When workers who use marijuana cease to have accidents at work, it is safe to say that marijuana is saving companies. Cannabis promotes worker health, which means the number of claims for damages will continue to decline over the years.
In America, workers received $ 62.9 billion in compensation in 2018. That’s a massive 1.2% reduction from 2014 in states that have legalized marijuana. Getting all of these incredible benefits from marijuana is a good thing for workers.
How does Reduction in compensation claims has an impact on the labor market?
Aside from the decline in workers’ compensation and the added cost, legalization of cannabis has fueled a boom in the American economy by creating more jobs in constitutional states.
The cannabis industry created over 70,000 jobs last year, an increase of 32%. Such amazing statistics make the cannabis industry one of the fastest growing job creation sectors in the country.
In addition, there is a significant improvement in the labor market when cannabis is readily available to users. The unemployment rate will inevitably fall as more people take advantage of the medicinal benefits of cannabis and become fit enough for the job market.
A reduction in claims for damages is also a signal for a burgeoning and healthy job market. Previously, the value of the labor market was only linked to the number of employees in a country. that has changed!
Given the reality of the impact of cannabis on the labor sector, American states are beginning to see the value of their workers’ health versus the numbers. What is the point if 1,000 employees file claims for damages annually? 1,000 employees with just 200 claims for damages is the new norm, and to achieve that is an incredible achievement.
Cannabis really has come a long way from being labeled a “bad substance” to being a plant that helps people find relief from their health problems. Because cannabis provides relief to workers, they are better at work, minimizing injuries, which also leads to fewer compensation claims for workers.
LOWER COST WITH LEGISLATION, READ MORE …
STATES WITH LEGAL MARIJUANA HAVE 50% LESS HEALTH INSURANCE USERS!