California Employers Oppose Fees on Workers’ Comp Premiums

Members of the Workers’ Compensation Action Network (WCAN) have launched a campaign to oppose more than $60 million in new annual workers’ compensation assessments being proposed in California. The new assessments are part of a State Budget proposal by the Department of Industrial Relations to shift the cost burdens for the Division of Occupational Health and Safety (Cal-OSHA) and the Division of Labor Standards Enforcement (DLSE) from the cash-strapped state General Fund to California employers, the group said.

The Golden State called a special legislative session to try to pass a budget on July 1, and faces a $24.3 billion budget shortfall.

“This additional burden on California employers couldn’t come at a
worse time,” said California Manufacturers & Technology Association
President Jack Stewart. “The state may be in dire need of funding, but imposing more fees on employers is only going to cost California jobs and make this recession worse. No employer should be assessed additional workers’ compensation fees at any time to pay for government programs not directly related to the administration of the state workers’ compensation system.”

California employers currently pay workers’ compensation assessments totaling more than $311 million annually, which provides 100 percent of the funding for the Division of Workers’ Compensation and related programs. Employers that are self insured, including cities, counties and school districts, pay similar assessments based on their payroll and workers’ compensation costs. Overall, the current proposal would increase these assessments by 22 percent to fund the activities of Cal-OSHA and the DLSE, the association explained.

“We do support full funding for California’s workplace safety programs
to protect workers and ensure employers are complying with the law,”
said Ding Kalis, president of Mag-Bit in Sante Fe Springs. “Shifting the cost for these programs to employers, however, will simply kill jobs, further damaging California’s economy and state budget.”

Members of WCAN’s employer network are contacting their State
Assembly and Senate representatives, as well as the governor’s office, urging that the proposal not be included in the final State Budget.

Source: WCAN

Latest Comments

• July 2, 2009 at 5:30 am

  Doctor J says:

  $60M in assessments isn't going to solve anything in comparison to $24Bn.
• July 2, 2009 at 3:25 am

  Chip on the Cape says:

  This is un-f___ing believable! Can employers pay the increase with an IOU?
• July 2, 2009 at 11:49 am

  Hooray for Capitalism!!! says:

  Yet another unbelievable story getting little press. The mere idea that government services which are to be paid for by taxpayer dollars, should be born by the businesses SCRE... read more