2024 Workers’ Comp Assessments

The Department of Industrial Relations just announced its annual assessments for 2024. The total assessments are $1.7 billion – an 8.5% increase from the $1.57 billion for 2023. It is … Read More »

Minimum/Maximum Payroll Limits Changing

California’s workers’ comp system includes minimum and/or maximum payroll limits for two dozen classifications, as well as limits for owners and executives, and the limits are likely to go up next year. The Workers’ Compensation Insurance Rating Bureau is proposing a 3.4% increase to account for projected wage inflation. See the chart nearby. The Bureau … Read More »

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Roofer Alleges Improper Audit and Overbilling, Seeks Class Certification

A roofing contractor is suing Pinnacol Assurance, Colorado’s largest workers’ comp carrier alleging that it routinely overcharges construction risks by charging or collecting premium on payments made to subcontractors who have workers’ comp or have legally waived it. Gold Star Premium Roofing alleges that many of these subcontractors already have workers’ comp coverage or are … Read More »

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Contractor Classification Disclosure Bill Sent To Governor

The California Legislature still has a day of work left this year, but legislators already sent Gov. Gavin Newsom a bill to require contractors to report the workers’ compensation classifications on their workers’ comp policies to the Contractors State Licensing Board. If enacted, the bill would require the CSLB to publish on its website the … Read More »

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Instacart IPO Notes Workers’ Comp Risks

One of the major players in the app-based, on-demand delivery services space is going public. However, its registration statement warns investors that classification disputes and workers’ compensation issues could ultimately pose a risk to its operations. Instacart notes in the prospectus that it already paid $46.5 million to settle one misclassification lawsuit, and the 600,000 … Read More »

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California Workers’ Comp Loss and Expense Ratio Deteriorates

According to a new report on the industry’s finances, California workers’ compensation carriers saw their loss and expense ratio tick up two points to 98.1% last year. The industry’s pretax underwriting profit declined for the fourth year to just 1.3% (see top chart on page 8). The results do not contemplate the investment income carriers … Read More »

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Workers’ Comp Rate Cut Approved

Insurance Commissioner Ricardo Lara rejected an insurance industry call for a 0.3% increase in California’s advisory pure premium workers’ comp rates and instead ordered a cut of 2.6% effective September 1, 2023. The decision resumes a trend of rate cuts going back to 2015 after a one-year pause when the Commissioner ordered rates to be … Read More »

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Jury Trial Opens In Dispute Over Workers’ Comp Premium On Per Diems

Attorneys for the State Compensation Insurance Fund and the nurse staffing firm ReadyLink are back in court as part of a decade-long dispute over alleged per diem payments which State Fund categorizes as payroll. The oft-delayed jury trial opened last week with the attorneys facing off over pretrial motions to exclude various evidence from a … Read More »

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