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Contact:

Bob Young
510-251-9470

For Release:

December 2, 2019

California Workers Comp Regulators Announce 2020 User Funding Assessment Rates

Oakland, CA - The California Department of Industrial Relations (DIR) has issued the 2020 assessments that workers’ compensation insurers are required to collect from policyholders to cover the budget of the state Division of Workers’ Compensation (DWC) and five related programs set up by state lawmakers.  Insurers should apply the following rates against their policyholders’ estimated annual assessable premium for policies incepting January 1, 2020 through December 31, 2020: 

2020 WC Administration Revolving Fund Assessment:
0.017040
2020 Uninsured Employers Benefits Trust Fund Assessment: 0.001274
2020 Subsequent Injuries Benefits Trust Fund Assessment: 0.004829
2020 Occupational Safety and Health Fund Assessment:
0.003918
2020 Labor Enforcement and Compliance Fund Assessment: 0.003813
2020 WC Fraud Account Assessment 0.003349

State law also requires insurers to advance the money on behalf of their policyholders (the first installment is due on or before January 1, 2020; the balance is due on or before April 1, 2020), then recoup the funds via surcharges and assessments on all workers’ compensation policies with 2020 inception dates.  Assessment methodologies are noted in the memos DIR posted this week. DIR defines “Assessable Premium” as “the premium the insured is charged after all rating adjustments (experience rating, schedule rating, premium discounts, expense constants, etc.) except for adjustments resulting from the application of deductible plans, retrospective rating or the return of policyholder dividends.”

To cover their share of the 2020 assessments, self-insured and California legally uninsured employers must apply the following rates against the total amount of workers’ compensation indemnity they paid:

2020 WC Administration Revolving Fund Assessment:
0.050135
2020 Uninsured Employers Benefits Trust Fund Assessment: 0.003786
2020 Subsequent Injuries Benefits Trust Fund Assessment: 0.014570
2020 Occupational Safety and Health Fund Assessment:
0.012390 
2020 Labor Enforcement and Compliance Fund Assessment: 0.012420
2020 WC Fraud Account Assessment 0.009805
     

More details are included in the memos that DIR has posted under “What’s New” at www.dir.ca.gov/dwc/.  The state is mailing the memos with invoices for each company’s share of the assessments and surcharges to California workers’ comp insurers, self-insured employers and legally uninsured employers.  Questions about the 2020 surcharges and assessments may be directed to Naomi Carter at NCarter@dir.ca.gov; 415-557-1020.

 

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