50% Increase Proposed for DIR Budget

California Governor Gavin Newsom delivered a proposed $297 billion state budget for the 2023-24 fiscal year that includes nearly $1.4 billion in funding for the Department of Industrial Relations (DIR). The Governor’s proposal includes roughly $450 million in additional funding than what was in his original proposal a year ago. Last year, the original proposed … Read More »

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SIG Sues Former Member Over Post-Term Workers’ Comp Claims

The California Agricultural Network (CAN), a self-insured group for the AG industry, is suing a former member company and its former owner. The group seeks to recover some $3 million for workers’ comp claims the SIG inherited after the grower closed down. The group claims it was not informed of a change in ownership at … Read More »

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Bankruptcy for Self-Insured Health Care District

The board of directors for the San Benito Health Care District declared a fiscal emergency. It gave district officials the authority to file a Chapter 9 bankruptcy petition with the U.S. Bankruptcy Court for the Northern District of California. The District operates the 25-bed Hazel Hawkins Memorial Hospital in Hollister and is self-insured for its … Read More »

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Private Self-Insureds’ 2021 Experience

include $2.8 billion for future medical expenses and $1.1 billion for future indemnity benefits. Self-insured employers’ workers’ comp liabilities are at their lowest level in roughly 20 years. In 2001, private self-insured employers had liabilities of $3.8 billion, but this soon topped $5 billion before topping out at $5.6 billion in 2013. The annual report … Read More »

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Self-Insured Group Industry’s Latest Numbers

According to the latest data from the state’s Office of Self-Insurance Plans, California workers’ comp self-insured groups (SIGs) are covering more payroll but fewer employers. The number of active SIGs is unchanged, but the number of active affiliates is down by nearly 10% from the prior year’s total. Covered payroll increased by over $225 million, … Read More »

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Budget Committee to Investigate DIR’s Vacancy Rate

The Assembly and Senate Budget subcommittees charged with reviewing the Department of Industrial Relations’ budget changes have reviewed the Department’s requests with limited comment, questioning, or pushback. However, one issue did catch the subcommittees’ attention: the 25% vacancy rate at DIR. Senate subcommittee chair Sen. Maria Elena Durazo (D-Los Angeles) announced that the panel would … Read More »

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Self-Insured Pursues Subrogation for Comp Claims

The City of Fresno is subrogating against two California contractors for a set of workers’ comp claims it contends were caused by the contractors’ negligence. The contractors allegedly mishandled the construction of a water treatment plant, which the City says resulted in two city workers becoming sick and filing workers’ comp claims. The City is … Read More »

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