Evening star., 1955-07-18
Disability Pay
In Private Jobs
Hit Council
Legislation Drofted
By Labor Department
For CiviIiun Trades

The Commissioners Citizens
Advisory Council today disap-
proved presently proposed legis-.
lation TO set up an insurance
system for workers here who are
kept OF the job temporarily by
nonwork-connected physical or
mental disability.
The Bureau Of the Budget has
requested q report from the
Commissioners on a new draft OF
such legislation drawn up by the
Department of Labor.
The legislation would not cover
District or Federal workers, but
would cover all other employees
except for domestics and certain
other categories.
Costs Would Be shared
The cost Of the plan would be
borne equally by the employer
and the employe. but an erl-
Iploye could not be required to
|pay more than half of per
cent of his wages or 20 cents q
week, whichever was less.
Employers would be assessed
annually d pro rata. share Of
lall benefits paid. based on the
first $4,000 of each employees
wages. In addition ne would
have to pay the premium to the
insurance carrier, or II self-in-
sured all benefit costs, as well
| as an assessment for administra-
tive costs. +
An employer would have the
choice Of placing the insurance
with a private carrier or Of
| self f-insurance, In which case he
would have to provide a bond.
Favored in Principle
The council opposed the leg
lislation as drafted. Member ].
C.. Turner asked that he be put
lon record as favoring the pro-
Iposal in its general principles
but objecting to the provision
for use Of private insurance COM
paflies.
The Washington Board Of
Trade opposed the measure in
principle. William H. Press.
executive vice president, said
the board did not feel there was
a substantial need for such legis-
Ilation. He said that since 194S
some 80 States had considered
bit, but that only four had
enacted 1t.
Mr.. Press said the board ques-
ttioned the basic philosophy OF
relating sickness insurance to
employers costs. He declared
4 that ''it is more properly q sub
Eject for general taxation. "
Sees Industry. shifts \
He contended that In approy-
| ing this type Of legislation he
thought Tyou are approving also
| the movement Of q certain NUM-
her of employing units out OF
| the District"
He contended that enlightened
management and enlightened
unions can get much farther
without this kind of legislation,
which he said would actually op-
crate to put q ceiling on an en-
lployer's responsibility.
MIR. Press said 1t was impos-
sible to tell exactly what the adj
ditional cost would be to en-
lployers, but he hazarded q guess
| of about So million a year.
Asks Amendments
The District Unemployment
Compensation Board is in favor
of the proposed measure with
some amendments. One would
permit employers to handle dis
ability benefit payments not only
by insurance policies or by quail
fication as self insurers, but by
paying contributions to a fund
administered by the board.
These payments would amount
to one per cent Of the wages
paid to an individual employe
half of the amount to be de-
Quoted from the employees
wages.
The board had approved an
earlier draft of such legislation
in the form of an amendment
to the District Unemployment
Compensation Act.
Glen F. Preller, president o1
the Washington Central Labor
Union, opposed the inclusion Of
private insurance companies un-