Legal Question in Workers Comp in California

Why are worker's compensation premiums charged on paid time off? And why are employers who want to pay better wages penalized by having to pay higher WC premiums? Do employees that make more money have more accidents? I want to pay my employees well, offer some paid time off, etc but the WC insurance premiums at over 30% is literally putting me out of business. No business = no jobs. Is there any way to get premiums based fairly on just hours worked? Or any way to offer paid time off benefit to my employees that are exempt from WC premiums?

Asked on 10/16/13, 10:12 am

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2 Answers from Attorneys

Ronald Mahurin Law Offices of Ronald Glenn Mahurin

Because workers compensation premiums are based upon pay, wages, and paid time off is considered a wage. Perhaps you should consider a different pay structure for time off, for example non-employee compensation (filing 1099), profit sharing, or something similar, or consider a different workers compensation carrier.

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Answered on 10/16/13, 12:04 pm

David Lupoff Law Offices of David B. Lupoff

As you may, or may not know, a workers' comp claim can cause an increase in premiums. While your question does not directly ask how to reduce workers' comp claims, my I suggest that you check with your carrier about courses on how to prevent, or reduce claims. Many carriers offer this information.

Good luck!

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Answered on 10/18/13, 2:16 pm

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