Pandemic Brings Down Workers’ Comp’s Cost and Benefit Ratios

Employers across the country saw an 8.5% reduction in the average cost of workers’ compensation during the Covid-19 pandemic. California employers saw a more significant cost decrease but still paid far more than employers in all but six other states. A new study by the National Academy of Social Insurance (NASI) shows that the nationwide … Read More »

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Instacart Settlement Avoids Workers’ Comp

Instacart, the gig-economy grocery delivery service, is putting up $46.5 million to settle a worker misclassification lawsuit filed by the City of San Diego. It is not admitting to any wrongdoing. The San Diego City Attorney alleged in the 2019 lawsuit that the company violated California’s unfair competition statute by misclassifying over 300,000 workers as … Read More »

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Medical Costs Up, But Below Pre-Pandemic Level

The Workers’ Compensation Insurance Rating Bureau reports that workers’ comp medical payments in 2021 jumped 5.5% from the prior year to $1.9 billion. Left unsaid was that the industry spent $2 billion on medical care in 2019 before the pandemic upended the California economy. Now it’s medical cost inflation that is taking its toll on … Read More »

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Employees’ Commutes Aren’t Covered Until They Are

The going and coming rule excludes accidents that occur during an employee’s normal commute. But defense attorneys say it is not always so clear cut. The rule applies until it doesn’t, and the employer’s actions – as well as the injured worker’s – are key in this determination. “So the general rule is that injuries … Read More »

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Employer Reclassification Appeal

A labor contracting agreement between a cleaning company and the operator of a timeshare resort that also rented rooms nightly like a hotel was key in deciding a workers’ comp classification dispute with the company’s workers’ comp carrier. Because the cleaning services were provided under contract, and not an employee leasing arrangement, a CDI administrative … Read More »

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Workers’ Comp Premium Levels Returning to Pre-Pandemic Levels

Workers’ comp premium plummeted in 2020 with the rapid shutdown of the economy in the wake of the Covid-19 pandemic and remained flat through 2021. Industry experts at the Workers’ Compensation Insurance Rating Bureau are predicting a sharp return to pre-pandemic levels, and the latest industry results are in line with projections. The Bureau is … Read More »

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California Workers’ Comp Loss Ratio

California’s workers’ comp carriers had a loss ratio of 96.3% last year compared to the 84.9% reported in 2020. The industry also saw its pre-tax underwriting profits tumble from 13.9% in 2020 to just 3.2% last year – the third straight year of decline. In 2018, the industry had a 23.3% pre-tax underwriting profit (see … Read More »

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Los Angeles Cost Creep

On July 8th, Los Angeles Mayor Eric Garcetti signed an ordinance submitted to him unanimously by the City Council to raise the minimum wage for certain healthcare workers to $25 … Read More »