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Empowering Manufacturers to Lead the Way December 11, 2001 Workers' Comp Initiatives Will Increase Benefits by an Estimated $6 billion The WCIRB has been requested by legislators and others to estimate the impact of the benefit provisions in the “Fairness for Injured Workers Act” initiatives that were filed with the State Attorney General’s office on November 21, 2001. The initiatives were filed twice, once as an amendment to the Labor Code and once as an amendment to the State Constitution. The attached Appendix summarizes the benefit levels proposed in the initiatives. The estimate shown herein is reflected as a percentage change of total benefit costs. As a benchmark, the annual dollar cost based on an estimated system-wide (including self-insured employers) benefit cost of $15.2 billion for the year 2003 is also provided. The benefit changes contained in the initiatives will increase benefit costs by an estimated 39.8%, or $6.0 billion annually. Please note that the estimated increase in benefit costs is preliminary and could change as additional information on costs becomes available. A State Average Weekly Wage of $857 was used to determine 2003 benefit minimum and maximum amounts. The State Average Weekly Wage of $857 is based on the 2000 average wage for all California workers published by the Bureau of Labor Statistics (BLS) adjusted for estimated wage inflation to 2002. ### Please contact Willie Washington with any questions at 916-498-3322 Download Initiatives as PDF files: The Fairness for Injured Workers Act The Fairness for Injured Workers Amendment