Commission Issues Analysis of California Workers Comp Costs

April 19, 2000
The Commission on Health and Safety and Workers' Compensation (CHSWC) announced its release of a report which gives an analysis of workers' comp costs in the face of efforts to increase benefits.

The Commission on Health and Safety and Workers' Compensation (CHSWC) announced its release of a report, "Workers' Compensation and the California Economy," which gives an analysis of workers' comp costs in the face of efforts to increase benefits.

Despite fears that benefit increases would negatively affect the California economy, the commission concluded current resources would provide adequate compensation to workers who lose their ability to compete in the labor market following on-the-job injury.

In its report, the commission says the California economy is robust and is expected to continue that way.

As cited in the report, the California industrial injury and illness rates declined significantly in all industries and sectors between 1988 and 1998, while the state's economy was growing.

This decline has been attributed to factors including shifts in the work force, greater, greater emphasis on workplace safety, continued efforts to combat workers' compensation fraud, and changes in employer reporting patterns.

According to the report, workers' compensation benefits have not kept up with inflation.

For example, the value of the permanent disability benefit after adjustment for inflation has declined to about 80 percent of its 1984 value.

Consideration should be given to indexing benefits, reports the commission.

Whenever a benefit increase goes into effect, the commission also recommends a study to measure the impact of benefit increase on wage loss of workers, days away from work, the benefit and equity.

More information on the commission report is available at www.dir.ca.gov.

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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