Workers' Compensation Reform

Bringing workers' compensation reform to full fruition, the Department of Industrial Relations has issued regulations implementing the meaningful workers' compensation reforms enacted last summer.

The reforms will benefit the two real stakeholders in workers' compensation: the employer and the injured worker. Half of the savings from reform will benefit the employer in terms of lower workers' compensation premiums, while the other half will pay for higher benefits for injured workers.

The legislation signed by Governor Pete Wilson last July mandated an immediate seven percent decrease in premiums. On December 1, the Department of Insurance ordered an additional 12.7 percent reduction in the minimum rate in anticipation of savings. That order brings the total reduction in premiums as a result of reform to nearly 20 percent.

In general, the reforms include:

To obtain copies of the final workers' compensation regulations, please contact the Division of Workers' Compensation at (415) 703-3731 or write to the Division at Post Office Box 420603, San Francisco, CA 94142-0603. Copies of the proposed Cal/OSHA regulations are available by calling (415) 703-4341 or by writing Cal/OSHA at 455 Golden Gate Ave.-Fifth Floor, San Francisco, CA 94102.