During a facility closing, an employer faces the likelihood that their workers’ compensation claims will increase and become more challenging. Defending a claim becomes more difficult, too.

When a facility is being closed, workers may be psychologically impaired, under-valuing possible future options, and over-valuing their difficulties. In that environment, the worker sees the company as both offender and a deep pocket. Workers’ compensation claims are an increasingly popular way to punish the offender and/or reach the deep pocket. Attorneys may aggressively encourage and assist employees to file and pursue claims.

When claims are filed at or after a facility closing, defending a claim is more challenging because evidence (physical and testimony) is less available and return to work is not a strategy option. Workers’ compensation administrative judges may also exhibit a bias to helping the worker (regardless of legal responsibility) or serving their constituency (instead of the jurisdiction’s Workers’ Compensation statute).