Insured and self-insured employers will be paying more to run the California workers’ comp system next year. The Department of Industrial Relations boosted the assessment rate for the workers’ compensation administration fund. Overall, assessments for all payers are now over $1 billion. It’s roughly $60 million higher than for 2019.
The total assessment rate for insured employers will be 3.4% in 2020 compared to the 2.8% for 2019. In 2017, the rate for DIR’s assessment was just 1.1% of premium.
Insured employers will benefit again next year from the California Insurance Guarantee Association’s decision not to assess. In years’ past the assessment was 2% of premium.
Self-insured employers are assessed based on their workers’ comp liability payments and will be paying a higher percentage in 2020 as well. The rate for the new year is 10.3% of the workers’ comp indemnity benefits that each self-insured employer paid out to injured workers. For 2019, the rate was 8.9% and in 2017 is was under 7%.
The assessments cover six separate funds that support various aspects of the workers’ comp system. The higher assessment rates are primarily related to DIR’s efforts to beef up its staff and are reflected in the Workers’ Compensation Administration Revolving Fund, but employers are also paying more to support the other programs as well. Assessments for the other four funds are dropping for next year (see chart below).
Insured Employer Assessments
|Workers' Compensation Administration Revolving Fund (WCARF)|
|Uninsured Employers Benefits Trust Fund (UEBTF)|
|Subsequent Injuries Benefits Trust Fund (SIBTF)|
|Occupational Safety and Health Fund (OSHF)|
|Labor Enforcement and Compliance Fund (LECF)|
|Workers' Compensation Fraud Account (FRAUD)|
|Total Assessment Factor|
Self-Insured Employer Assessments
|Workers' Compensation Administration Revolving Fund (WCARF)||0.050135||0.04381|
|Uninsured Employers Benefits Trust Fund (UEBTF)||0.003786||0.003796|
|Subsequent Injuries Benefits Trust Fund (SIBTF)||0.01457||0.010258|
|Occupational Safety and Health Fund (OSHF)||0.01239||0.01198|
|Labor Enforcement and Compliance Fund (LECF)||0.01242||0.010617|
|Workers' Compensation Fraud Account (FRAUD)||0.009805||0.008965|
|Total Assessment Factor||0.103106||0.089426|