The Rising Costs of Legal Representation
Legal representation in workers’ compensation cases continues to significantly impact costs and benefits. According to a September 2024 study by the Workers Compensation Research Institute, attorney involvement increases indemnity payments by $7,700 to $12,400 on average. The study found that 34% of workers absent for more than seven days due to work-related injuries had legal representation. In cases with permanent partial disability or lump sum payments, 64% of workers were represented by attorneys.

Key Factors Driving Legal Representation
Understanding why employees seek legal representation is crucial. The primary factors include:
- Severity of the injury
- Complexity of the claims process
- Employee perception of the situation
While the severity of an injury is often beyond an employer’s control, there’s significant room for improvement in managing the claims process and shaping employee perceptions.
The Psychological Impact of Workplace Injuries
A workers’ compensation injury extends beyond physical harm, encompassing complex psychological and social issues. Injured employees often face fears about job security, peer perceptions, and recovery prospects. To address these concerns, we recommend providing an comprehensive injury packet to employees when an incident occurs. This packet should include:
- Clear expectations from the employer and healthcare providers
- Necessary forms for medical appointments
- Return-to-work information
- Educational materials about the workers’ compensation process
This proactive approach can significantly reduce anxiety and the likelihood of an employee seeking legal representation.
Emerging Trends in Workers’ Compensation for 2025
1. Inflation and Cost Pressures
Medical and wage inflation continue to impact workers’ compensation premiums. The Centers for Medicare and Medicaid predict health care spending will rise by 5.4% annually through 2028. Employers should anticipate potential premium increases and focus on preventive measures to control costs.
2. Mental Health Considerations
With one in five U.S. adults experiencing mental illness annually, there’s a growing push to expand workers’ compensation coverage to include job-related mental health conditions, particularly PTSD and trauma-related disorders. Employers should prioritize mental health resources and support in their workplace wellness programs.
3. Shifting Workplace Demographics
The workforce is experiencing significant demographic shifts, with a larger proportion of both inexperienced and aging employees. The Bureau of Labor Statistics projects a 96.5% growth in workers aged 75 and older over the next decade. This trend necessitates tailored safety programs and accommodations for diverse age groups.
Strategies for Effective Workers’ Compensation Management in 2025
- Implement Robust Safety and Health Programs: Focus on addressing common risks, especially if you’re using a loss-sensitive workers’ compensation program.
- Conduct Regular Safety Training: Ensure all employees, regardless of age or experience level, receive ongoing safety education.
- Leverage Technology: Utilize AI, telemedicine, and wearable devices to enhance safety, streamline claims processing, and improve outcomes for injured workers.
- Strengthen Communication Practices:
- Include injury processes in new hire orientations
- Communicate clearly about benefits and the claims process when injuries occur
- Send personalized get-well messages to injured employees
- Use appropriate language that reinforces the employee’s value to the organization
- Avoid jargon and communicate in the employee’s preferred language
- Tailor communication methods to individual preferences (e.g., text messages for younger workers, phone calls for others)
- Prioritize Mental Health: Invest in mental health resources and training to reduce related claims and improve overall employee well-being.
- Review and Update Policies: Regularly assess your workers’ compensation policies to ensure they address the needs of all employees, including those in non-traditional roles.
- Focus on Prevention: Implement comprehensive safety programs and ergonomic solutions, especially for older workers.
- Streamline Claims Processing: Act promptly to report injuries and process claims to reduce employee anxiety and the likelihood of legal representation.
Final Thoughts
The landscape of workers’ compensation continues to evolve, presenting new challenges and opportunities for employers. At UNICO, we understand the complexities of workers’ compensation in this evolving landscape. Our Certified WorkComp Advisors are here to help you navigates these challenges, lower costs and increase profitability. We’re committed to providing you with expert guidance and tailored solutions that address the unique needs of your business in 2025 and beyond.