Newsline No. 72-07
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October 24, 2007

Division of Workers' Compensation posts updated audit regulations to online forum for public comment

The Division of Workers' Compensation (DWC) has posted its proposed updated audit regulations to an online forum where members of the public may review and comment on the proposal. The proposed regulations seek to ensure that DWC's audit procedures, which have not been updated since 2003, stay current with new statutory obligations resulting from workers' compensation reform legislation, most notably Senate Bill 227 and Senate Bill 899. The amendments will address the required annual report of inventory, supplemental job displacement benefits and electronic reporting to the workers' compensation information system.

The proposed updated audit regulations are authorized by Labor Code sections 129 and 129.5. Labor Code section 129 requires the administrative director to conduct audits of insurers, self-insured employers, and third-party administrators to determine if they have met their obligations under California's workers' compensation laws. Labor Code section 129.5 confers authority on the administrative director to assess administrative and civil penalties for statutory and regulatory violations. The proposed changes are found in the California Code of Regulations, Title 8, sections 10100.2 through 10115.2

The forum can be found at Please click on "current forums" at the top of the page. Comments will be accepted at the forum through Nov. 13, 2007. Please feel free to participate in this important process.