There has been a huge upturn in the number of litigated claims over the past 2 years in California Workers' Compensation. Now approximately 40-50% of claims are becoming litigated and virtually 100% of claims older than 2 years are in litigation. When I was told this, my initial question was: Why?
For years, business owners have complained about the same things regarding Workers' Compensation Insurance: Large Deposits High Rates Policy Audits Difficult Payment Plans Aren't these the things that bother you the most about Work Comp? These can be especially bothersome for smaller businesses, who never seem to see the same aggressive offers from Insurance Companies. These
The fact of the matter is, there is much confusion regarding the status of who actually is an independent contractor. Despite rumors that the economy is slowly, very slowly rebounding, government entities nationally are in fiscal holes: The Obama administration estimates that there is up to $2.7 billion+ in unpaid Social Security,
The California Workers Compensation Insurance Rating Bureau will not include estimated payrolls in an experience modification (ex mod) calculation. If a final audit is late the Bureau will process the worksheet without the payroll data for that policy period however they will include the claims. Obviously this will wreak havoc on an ex mod