New California Workers’ Comp Regulations for July


The insurance world is an ever changing landscape of policies, regulations, and restrictions. Add in the effects of COVID-19, and it can leave many individuals and clients confused. Luckily, we are here to help make sense of these changes and stay up to date on all things insurance.

What California’s New Workers’ Comp Regulations Are:

The state of California recently issued a new order regarding how worker’s compensation works with COVID-19. This new order works with the previous April 13 and May 15 orders regarding risk of loss. The new regulation will, “require insurance companies to recompute premium charges for policyholders to reflect reduced risk of loss,” according to Insurance Journal. This is a win for struggling businesses as ultimately it will result in financial savings.

California Insurance Commissioner Ricardo Lara has addressed the fact that many California businesses have been negatively impacted by COVID-19, and by issuing this change in worker’s compensation, Commissioner Lara said, “My order will provide some financial relief for employers when they need it most.”

How the New Workers’ Comp Regulations Affect Businesses:

The new workers’ compensation regulations allow employers to reclassify employees that due to COVID19 are exposed to less risk than what was recorded initially. In turn, this will reduce the employer’s premiums due to lower dangers of risk while working at home. The new regulations will also omit payments made to employees, such as sick and/or family leave, while they are not performing any work-related tasks. This will also reduce the employer’s workers’ comp rates as the employer will “not pay premium for paid workers who are otherwise being furloughed,” according to Insurance Journal.

This new regulation goes into effect July 1st, and will undoubtedly improve businesses that are financially struggling. Stay up to date by keeping up with our blog and by following Insurance Journal.

Tim Mooney
For 22 years, Tim has specialized in alternative risk financing for workers’ compensation and liability insurance programs with unmatched brokerage services.
Clint Tripodi

Clint has 25+ years of success in HR & Operations consulting with 450+ global high-tech companies.

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