If the anecdotal evidence can be trusted, it’s becoming more and more common that contractors are being put on notice that they will lose the opportunity to bid on jobs if their workers’ compensation experience mods hit a certain point.
On the surface, this seems like a prudent move, since improving job safety is in everyone’s best interest.
Unfortunately, the pressure may result in unintended consequences. Fearing they may lose work, some sub-contractors are seeking ways to manipulate their experience mod. At a time when jobs are scarce and the competition is fierce, it’s easy to see why a sub-contractor may do almost anything to avoid going out of business.
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