24 Sep
California Governor Signs for Workers? Comp Cost Reductions
Gov. Jerry Brown signed a bill on September 18, 2012 to reduce workers? compensation costs for California businesses while still increasing benefits to injured workers.
Bill supporters say the legislation will make the workers? compensation insurance system more efficient and the
governor?s office agreed, saying changes were needed because the cost of insurance has risen from $14.8 billion to $19 billion in the past two years alone.
?We?re saving hundreds of millions of dollars for businesses, we?re getting workers back to work faster and we?re getting them the kind of medical care they need,? Brown said before signing the bill in San Diego on September 20.
The bill, SB863, will increase benefits to permanently disabled workers by $860 million a year while giving employers a break on insurance costs. Still, several attorneys who represent injured workers said the bill limits litigation, which might lead to fewer benefits for their clients.
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