2026 ASSESSMENT RATES FOR SIX FUNDS
Today the Department of Industrial Relations (DIR) announced the 2026 assessment rates for user funding (Workers’ Compensation Administration Revolving Fund), the Uninsured Employers Benefits Trust (UEBT) Fund, the Subsequent Injuries Benefits Trust (SIBT) Fund, the Occupational Safety and Health Fund, the Labor Enforcement & Compliance Fund, and the Workers’ Compensation Fraud Account. Insurers must apply the following rates against their insureds’ estimated annual assessable premium for policies incepting January 1, 2026 through December 31, 2026:
State law requires insurers to advance the money on behalf of their policyholders (the first installment is due on or before January 1, 2026; the balance is due on or before April 1, 2026), then recoup the funds via surcharges and assessments on all workers’ compensation policies with 2026 inception dates. DIR included the assessment methodology in a memo issued today, which says that for single carriers that were not part of an insurer group that reported data to the WCIRB on an individual company basis for 2024, “Total California Direct Written Premium for assessment purposes is the amount reported for calendar year 2024 to the WCIRB, which reflects the premiums charged to policyholders with the exception that it excludes the impact of deductible credits, retrospective rating adjustments, and policyholder dividends.” For insurers that were part of an insurer reporting group that reported data to the WCIRB for 2024, “Total California Direct Written Premium for assessment purposes has been determined as the product of (a) the total 2024 written premium reported to the WCIRB on the aforementioned basis and (b) the ratio of your company’s 2024 California written premium as reported in the 2024 Statutory Annual Statement (these amounts include the effect of deductible credits and retrospective rating adjustments) to the total 2024 Statutory Annual Statement of California written premium reported for your insurer group as a whole.”
To cover their share of the 2026 assessments, self-insured and California legally uninsured employers must apply the following rates against the total amount of workers’ compensation indemnity they paid:
More details for insurers and self-insurers are in the memo that DIR posted under “What’s New” at www.dir.ca.gov/dwc/. DIR is mailing the memo to workers’ comp insurers and self-insured employers along with invoices for each company’s share of the assessments and surcharges. Insurers with questions may email them to DIRDWC_Assessment@dir.ca.gov
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