Fast Rising Workers' Compensation Premiums Prompt Renewed Discussion of Reforms

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Feb. 14, 2003 Share this on FacebookTweet thisEmail this to a friend


With 2003 premiums more than doubling for many employers, the prospect of paying the entire budget for the Division of Workers' Compensation (DWC) and other general fund costs as well, it is no wonder that employers are frustrated and angry. To add insult to injury, despite having no imput on AB 749 - the $3.5 billion workers' compensation benefits increase that passed last year - employers are now being asked to fully fund DWC rulemaking costs to achieve so-called employer savings in the bill.

Everyday, CMTA receives calls from an employers complaining about the high cost of workers compensation in California and how it is negatively impacting their businesses. Legislators are also beginning to hear from complaining employers in their district. Employers want their trade associations and their legislators to do something about it now.

To be kept informed on action needed on workers' compensation, go to www.cmta.net and click on the "Sign-up for Action Alerts". We are in the process of constructing a short simple survey on our web site that can be completed electronically that will give us information on employers' locations and histories over the past 3 years including the number of employees, industry code, workers' compensation experience modification, and premium costs. This information will be used to educate legislators on the excessive cost of workers' compensation in California and will be kept confidential.

This is part of CMTA's new grassroots program to make it easy for manufacturers and other businesses to more actively engage in the legislative and regulatory process. The program presents information on important bills and issues and makes it easy to communicate with legislators, the administration, and CMTA.

We believe that the collective efforts of employers and CMTA will be a more effective way to advocate for the changes needed to reduce the cost of workers' compensation in California. We urge you to participate in the future in the workers' compensation survey and the grassroots program.
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