A Briefing on California Workers Compensation That Employers Should Know

Every day, employers in California have an employee who is absent due to injury or sickness.
Small businesses are especially at risk because any employee who is injured or sick can affect their operations—especially if it happens on the job.

Employment Information
Employers can lessen the impact of that risk by getting workers compensation insurance. Briefly, workers compensation is an insurance policy for an employee injured or sick in the course of their work—no matter who is at fault. Below is a short briefing on California workers compensation that small businesses should keep in mind:
According to the Department of Industrial Relations of the State of California, workers compensation gives six benefits to full-time and part-time employees. These benefits are “medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits or vocational rehabilitation, and death benefits.”
In California, employers must have workers compensation even for just one employee. Not providing workers compensation is a criminal offense. Additionally, any employee is not required to pay or offset the cost of the policy. Employers can shop among the various insurance carriers in the market for the one having what the former seeks.
Employers have two options for workers compensation coverage: to become self-insured or to obtain coverage from a licensed insurer in the state. They must choose from either option. If they choose the second option, the website of the California Department of Insurance lists the number of insurers authorized in the state. For an insurer that provides workers compensation for a specific employer, the Workers’ Compensation Insurance Rating Bureau is the next stop.
Like any insurance, workers compensation entails a premium. The cost of workers compensation will depend on a number of factors. Among the factors are the industry classification of employers, their payroll, their history (if any) of work-related injuries, and any special underwriting adjustments. Employers shoulder the full cost of the insurance.
As small businesses might imagine by now, obtaining insurance for CA workplace safety and working out its nuances feels like a lot of work. Fortunately, they can use a payroll service provider that can minimize work-related injuries through enforcing safety policies and managing employee claims. A company such as OmegaComp HR can help small businesses with their workers compensation concerns.<
Article Information and Image from Employer information, California Department of Industrial Relations, April 2013

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