Tag Archive | news
August 21, 2025  

California Workers’ Compensation: First Rate Increase in a Decade

For the first time in 10 years, California’s workers’ compensation rates are increasing.

The state has approved an 8.7% rate increase, driven by sharply rising claim costs and industry-wide financial strain.

The Workers’ Compensation Insurance Rating Bureau (WCIRB) projects the 2024 Accident Year Combined Ratio at 127%. This is the highest ratio since 2001.

Put simply, carriers are paying out $1.27 for every $1.00 of premium collected, which is unsustainable without pricing adjustments.

Why Are Costs Rising?

There are three major culprits behind the jump in workers’ compensation costs:

  1. Cumulative Trauma (CT) Claims
    CT claims are injuries that occur over time rather than from a single incident. They are rising rapidly. These claims are more complex, harder to close, and often stay open for years, adding significant cost to the system.
  2. Rising Medical Costs
    After years of stability, medical costs turned sharply upward in the past year. Factors include higher provider charges, more advanced (and expensive) treatments, and longer recovery times.
  3. Increased Litigation
    Loss adjustment expenses are climbing as litigation becomes more common. Disputes over claims often extend case duration’s and increase settlement values.

Together, these trends are straining the workers’ comp system. Unfortunately, employers will start to feel the impact as a result. It shows in the form of higher premiums.

What This Means for Employers

If you’re a California employer, expect workers’ comp pricing to firm in the coming policy renewal cycles. While legislation may eventually need to address systemic cost drivers, the immediate impact is higher insurance costs.

Now [and always] is the time to:

  • Focus on claims prevention: Invest in workplace safety programs and early intervention for injuries.
  • Review your claims history: Cumulative trauma claims often arise when small issues aren’t addressed quickly.
  • Work with an experienced broker: Having the right advocate can help you navigate pricing changes. They can also help you in exploring coverage options. Additionally, they implement risk management strategies to control costs.

My Take

While rate increases are never welcome news, disciplined carriers and proactive employers can still manage costs effectively. As your broker, our role is to help you stay ahead of these changes. We control risks and make sure you’re partnered with carriers who remain stable, consistent, and service-oriented. This is crucial in a hardening market.

-JK

June 3, 2024  

California Requires Workplace Violence Prevention Plans

Starting on July 1, 2024, employers of all sizes will be required to have a written workplace violence prevention plan, maintain a violent incident log, and provide workplace violence prevention training to employees. These requirements will apply to nearly all California employers and employees. Exceptions include healthcare employers covered by the state’s workplace violence prevention plan standard, remote employees working at a location not controlled by the employer, and worksites with fewer than 10 employees that are not open to the public.

Below are some highlights of the law. You can find more complete information on the requirements in our platform and on Cal/OSHA’s Workplace Violence Prevention Guidance and Resources page, which includes helpful FAQs and a Fact Sheet.

For questions and free technical assistance, employers should contact the Cal/OSHA Consultation Services Branch at (800) 963-9424 or by email at InfoCons@dir.ca.gov.

Workplace Violence Prevention Plan
Employers must develop and maintain a written workplace violence prevention plan that all employees can access and that is tailored to address the hazards and corrective measures in each work area and operation. The plan must include mechanisms for involving employees, including in the implementation of the plan, identification and correction of hazards, ongoing improvement of the plan, reporting of incidents, and the design of training.

The plan can either be incorporated into the employer’s existing written injury and illness prevention program (as a stand-alone section) or maintained as its own document. Employers are required to review the plan regularly and conduct periodic inspections to identify workplace violence hazards.

Cal/OSHA has created a model workplace violence prevention plan for employers to use.

Violent Incident Log
Employers must keep a violent incident log with specific information about each workplace violence incident. The information in the log must come from employees who experienced the incident, witness statements, and investigational findings. Personal identifying information (such as names and addresses) that would allow someone to identify those involved in the incident should be excluded from the log. The log must be reviewed annually, when a violent incident occurs, and when a deficiency arises.

Training
Employers are required to provide employees with training on the workplace violence plan when it’s first established and annually thereafter. Additional training has to be provided when a new workplace violence hazard is identified or when changes are made to the plan, but this training can be limited to covering those specific topics. Any training materials the employer uses must be appropriate for the employees’ language, literacy, and educational level.

Action Items
Create a written workplace violence prevention plan, make it available to all employees, and provide training on the plan.

As usual, if you’re feeling overwhelmed about this and other regulations, contact me if you can use a hand and I will facilitate my resources and relationships to help you out.

-JK