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Opting Out of Workers' Comp Program Demands Careful Consideration

Employers considering opting out of workers compensation systems must ensure they understand the differences between traditional programs and requirements imposed on employers that forgo coverage through state systems, according to a report by the Risk & Insurance Management Society Inc.

Texas and Oklahoma already allow qualified employers to opt out of the states' workers comp programs, while Tennessee and South Carolina legislators introduced opt-out legislation this year, according to the report, Alternatives to Traditional Workers' Compensation Systems, that was released Tuesday.

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