Protecting North Dakota’s Workforce Safety and Insurance (WSI) System

This is part one of a two-part response addressing concerns about proposed trends within this Legislative Assembly. The discussion was initiated by a letter from GNDC's CEO and President, Arik Spencer.

Each legislative session – with no exception this session, bills are introduced that attempt to put chinks in the armor of North Dakota’s Workforce Safety and Insurance (WSI) system. These proposals often aim to create exceptions for specific groups, change definitions, broaden coverage, or shift policy. While these changes may stem from individual scenarios, they risk disrupting a system that works exceptionally well for the whole of North Dakota.
 
Changes of any size don’t happen in isolation—they create cost increases felt by every single business. WSI is a mandatory cost to do business in North Dakota, and as expenses rise, strains pressure operational budgets. For many businesses, this could mean making tough decisions elsewhere, potentially impacting wages, benefits, or workforce size. Incremental increases add up, and the ripple effects extend beyond just those directly impacted by the legislative changes.
 
WSI was created in 1919 and GNDC (then GNDA) pushed for a reform in the 90’s resulting in our current system. WSI’s framework has balanced workplace safety, employee support, and business affordability, earning it a national reputation. This is no small task to create this symbiotic system; it’s done through the past thought leadership of legislature, engagement with stakeholders like GNDC and our partners, and strong leadership at the helm of the organization.
 
The system focuses on prevention, investing in safety programs to reduce workplace injuries, resulting in fewer claims for businesses and comprehensive care for employees when injuries occur. This stability and efficiency are further bolstered by the system’s financial health. Operating as a monopolistic fund, North Dakota’s WSI program provides predictability for employers while maintaining fiscal responsibility. Looking to compare across the border? Our neighboring states premiums start at twice the cost.
 
Pendulum-swing reactions to isolated cases threaten the integrity of the overall system. While individual situations can have profound impacts, the broader framework has proven its effectiveness, creating a model that supports both businesses and workers. Protecting this system ensures North Dakota’s continued leadership and success in workers’ safety and insurance. Legislation needs to fortify this system not dismantle it into pieces – GNDC is concerned that this message isn’t being received.
 
PROPOSED WSI-IMPACTING BILLS THIS SESSION:
(to-date with to-date outcomes)

• HB 1060 (presumption of compensability) - failed
• SB 2181 (PTSD coverage)
• SB 2094 (retroactive retirement) - failed 

 
IN 2020, GNDC ran an overview story of WSI – CHECK OUT THIS EXCERPT: 
Wally Keller (President of Jobbers Moving and Storage, previous WSI Board Chair) stated, “Workers’ comp is one of their potential highest bills. Businesses need to keep their eye on the process. WSI’s decisions and operations influence rates and dividends as do decisions made about WSI during the legislative session.”
 
“Businesses have to pay premiums based on the type of jobs they have or the claims that are filed. But that is not the main reason. It’s about employees and workforce,” Previous WSI Director Bryan Klipfel expressed. “You want your people to be safe and keep them safe so they can go home to their families.”
 
Read the full story here.