Labor Code Sections 62.5 and 62.6 authorize the Department of Industrial Relations to assess employers for the costs of the administration of the workers’ compensation, health and safety and labor standards enforcement programs.

Christine Baker, Director, Department of Industrial Relations, has circulated a worksheet detailing the methodology used to compute the Workers’ Compensation Administration Revolving Fund, Uninsured Employers Benefits Trust Fund, Subsequent Injuries Trust Fund, Occupational Safety and Health Fund, Labor Enforcement and Compliance Fund allocation and Workers’ Compensation Fraud Account Assessment and to allocate the assessment between insured and self-insured employers.

The total assessment for all payers for fiscal year 2016/2017 is as follows:

1) Workers’ Compensation Administration Revolving Fund (WCARF) – $452,328,500

2) Uninsured Employers Benefits Trust Fund (UEBTF) – $56,914,500

3) Subsequent Injuries Benefits Trust Fund (SIBTF) – $54,565,550

4) Occupational Safety and Health Fund (OSHF) – $106,128,662

5) Labor Enforcement and Compliance Fund (LECF) – $85,588,500

6) Workers’ Compensation Fraud Account (FRAUD) – $58,862,000

The Labor Code requires allocation of the total assessment between insured and self-insured employers in proportion to payroll for the most recent year available.

Each self insured and carrier for an insured employer will be receiving an invoice for their share of these assessments.