Financial Implications for Workers’ Compensation as a result of Florida Supreme Court Ruling

A recent but long-awaited ruling by the Florida Supreme Court is likely to negatively impact cost associated with workers’ compensation claims and insurance premiums for any business that employs workers in Florida.

On April 26, 2016, in Castellanos v. Next Door Company, the Florida Supreme Court, in a five to two ruling, determined that the provision stated in an October 2003 workers’ compensation law (Senate Bill 50A), which caps attorney fees based on a specific formula, is unconstitutional under both the Florida and U.S. Constitutions.

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