Why Businesses Love Illegal Immigration

| Tue Nov. 29, 2011 3:13 PM EST

Tod Kelly tells a story about a commercial nursery that hired his firm a few years ago to help get their workers compensation claims under control. After examining the nursery's operations, they made several recommendations about buying some new equipment and updating their training:

As we were wrapping up, as an aside, we noted that one of their larger ongoing back injury claimants was an illegal alien. We could close that claim out quickly, we told them, by letting the injured worker know that we would have light duty work for him were he able to legally work for the nursery. Since he wasn’t able, he could be terminated and all future indemnity costs would disappear. As soon as we explained this, the brothers began looking at each other, wide eyed and smiling. I cringed inwardly. I knew we had just made a mistake.

The updated equipment was never purchased, of course. And taking the time to train or stretch was seen as a waste of the company’s time and money. The claims continued to flood in, but now with each claim came notification from the employer that they had “reason to suspect” the claimant was an illegal worker, along with a request to send the light-duty letter so we could avoid making indemnity payments. Over the course of the next year the number of employee injuries increased 20%. But without indemnity costs their annual claims cost decreased 55% — and their insurance premiums went down as a result. They were able to terminate our services the next year with a glowing letter of recommendation.

Today they have moved from being one of a top-100 nursery to being a top-15, and by all accounts are going strong.

If this reminds you a lot of The Jungle, you aren't the only one. The rest of the piece is worth a read too.