Oakland, CA — The California Division of Industrial Relations (DIR) has issued the 2025 assessments that employees’ compensation insurers are required to gather from policyholders to cowl the finances of the state Division of Staff’ Compensation (DWC) and 5 associated applications arrange by state lawmakers. Insurers ought to apply the next charges towards their policyholders’ estimated annual assessable premium for insurance policies incepting January 1, 2025 via December 31, 2025:
2025 WC Administration Revolving Fund Evaluation/Consumer Funding: 0.012370
2025 Uninsured Employers Profit Belief Fund Evaluation: 0.000818
2025 Subsequent Accidents Advantages Belief Fund Evaluation: 0.030148
2025 Occupational Security & Well being Fund Evaluation: 0.001885
2025 Labor Enforcement & Compliance Fund Evaluation: 0.001058
2025 WC Fraud Account Evaluation: 0.004096
State legislation additionally requires insurers to advance the cash on behalf of their policyholders (the primary installment is due on or earlier than Tuesday, January 1, 2025; the stability is due on or earlier than Wednesday, April 1, 2025), then recoup the funds through surcharges and assessments on all employees’ compensation insurance policies with 2025 inception dates. Evaluation methodologies are famous in a DIR memo issued this week. The DIR memo to insurers notes that for single carriers that weren’t a part of an insurer group that reported information to the WCIRB on a person firm foundation for 2023, “Complete California Direct Written Premium for evaluation functions is the quantity reported for calendar 12 months 2023 to the WCIRB, which displays the premiums charged to policyholders with the exception that it excludes the impression of deductible credit, retrospective score changes, and policyholder dividends.” For insurers that had been a part of an insurer reporting group that reported information to the WCIRB for 2023, “Complete California Direct Written Premium for evaluation functions is the product of (a) the full 2023 written premium reported to the WCIRB on the aforementioned foundation and (b) the ratio of your 2023 California written premium as reported within the 2023 Statutory Annual Assertion (these quantities embody the impact of deductible credit and retrospective score changes) to the full 2023 Statutory Annual Assertion of California written premium reported in your insurer group as an entire.”
To cowl their share of the 2025 assessments, self-insured and California legally uninsured employers should apply the next charges towards the full quantity of employees’ compensation indemnity they paid:
2025 WC Administration Revolving Fund Evaluation: 0.018754
2025 Uninsured Employers Profit Belief Fund Evaluation: 0.001085
2025 Subsequent Accidents Advantages Belief Fund Evaluation: 0.057041
2025 Occupational Security & Well being Fund Evaluation: 0.001177
2025 Labor Enforcement & Compliance Fund Evaluation: 0.000123
2025 WC Fraud Account Evaluation: 0.006624
Extra particulars for insurers are within the memo that DIR posted underneath “What’s New” at https://www.dir.ca.gov/dwc/. The state is mailing the memos together with invoices for every firm’s share of the assessments and surcharges to California employees’ comp insurers, self-insured employers and legally uninsured employers. Anybody with questions concerning the 2025 surcharges and assessments could e mail them to DIRDWC_Assessment@dir.ca.gov.
