Study: California 3rd Highest Worker's Compensation Rates

I've long heard that doing business in California is tough.  In addition to shaky fiscal opportunities, it appears California employers also enjoy the 3rd highest worker's compensation rates.

In a recent study by the Oregon Department of Consumer and Business Services, California was ranked 3rd with 155% of the study median of $1.88 per $100 in payroll.  This means California employers paid $2.92 per $100 in payroll in 2012 compared to states such as North Dakota, who paid $1.01 per $100 in payroll.

California's recent worker's compensation overhaul was aimed at cutting these costs for both employers and to the state, but it remains to be seen whether these cuts will undermine employee benefits.  Oregon's Department of Consumer and Business Services claims that its own cuts to the worker's compensation system is a model for lowering costs to both employers and reducing accident claims.  As California impliments its own worker's compensation changes, these statistics may drop significantly.  And let's hope that coverage for injured employees doesn't follow suit.