• Cole Przybyla

Changes to California Worker Compensation

Small Business employers are now permitted to reclassify an employee if the employee’s duties have changed to a clerical classification that has reduced risk than the employee’s previous classification. This reclassification could reduce the employer’s premiums for employees who are now at a lower risk. This change would be retroactive to March 19, 2020, the first day of the Governor’s statewide stay-at-home order, and conclude 60 days after the order is lifted.


These emergency regulations also exclude from premium calculations the payments made to an employee, including sick or family leave, while the employee is not performing duties of any kind for the employer. Typically, these payments would be used as a basis for the employer’s workers’ compensation premium. This change will lower the employer’s rate by reducing the amount of payroll assessed, and the employer will not pay premium for paid workers who are otherwise being furloughed.


If you would like to make changes to an employee's classification reach out to your local insurance agent.


If you encounter any issues while making changes, please follow up with the California Department of Insurance HERE or reach out to the Innovation and Business Assistance Department HERE


Link to Commissioner Lara's Decision and Order, click HERE

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