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California workers’ comp reform passes into law

September 26, 2012

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San Diego – Under California’s new workers’ compensation reform law, the state’s employers can expect reduced costs and improved training for workers, the governor’s office claims.

Gov. Edmund G. Brown (D) signed the legislation (SB 863) into law Sept. 18. Brown said the reforms will stop a projected increase in rates and save employers millions of dollars by cutting waste from the workers’ comp system. He said the law also:

  • Increases permanent disability benefits by 30 percent
  • Increases payments to injured workers for job retraining
  • Provides a more predictable and objective benefit delivery system

Workers’ comp insurance costs in the state jumped more than $5 billion in the past two years and were expected to increase to more than $21 billion from $19 billion in the near future. The new law reduces inefficiencies and unnecessary expenses, which is expected to save businesses $1 billion in 2013, according to a press release from the governor’s office.

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